Cellular network operator MTN Group has issued a correction to the financial results it published last week.
The group made the errors in the income statement, balance sheet and statement of changes in equity.
The balance sheet as at 30 September has been revised to show current liabilities of R10.08 billion, as opposed to the R9.11 billion reported last week. Non-interest-bearing liabilities have been corrected to show a figure of R9.11 billion instead of the incorrectly published R9.09 billion.
The current liabilities change means that MTN had a current ratio of one at the end of the six months to September, and not the 1.1 based on last week`s reported figures.
The current ratio is the ratio of short-term assets to short-term debts, and is an indicator of the extent to which a company can use short-term assets to meet short-term debt obligations. A ratio of more than one means short-term assets outweigh short-term debts.
On the income statement, the group has corrected prior-year figures relating to direct network operating cost (now recorded as R5.11 billion instead of R4.17 billion) and selling, distribution and other general administration expenses (corrected to R2.3 billion from R3.24 billion).
The correction deals with accounting treatment and, as the sum of the two income statement items remains the same, it does not affect prior-year profit figures.
The statement of changes in equity now no longer includes minorities.
The results last week were the group`s first under international financial reporting standards (IFRS), with the prior-year results restated for comparison under IFRS.
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