Dimension Data has restated its income statement for the year to 30 September 2005 and its balance sheets at 1 October 2004 and 30 September 2005.
The restatements are in preparation for the group`s adoption of International Financial Reporting Standards (IFRS) as the primary accounting basis for the year to September 2006.
The group previously reported under UK generally accepted accounting practice (UK GAAP).
Dimension Data says the change to IFRS will not have a material effect on the reported trading performance to the 2005 financial year, other than with regard to share-based payments.
The only effect on the results for the current fiscal year is with regard to share-based payments and business combinations, as goodwill is no longer required to be amortised.
"There will be no material cash flow implications as a result of the adoption of IFRS," says Dimension Data chief financial officer David Sherriffs. "The most significant impact on reported trading performance will be, as previously advised, accounting for the share-based payments, that is, employee share incentive schemes."
Accounting for share-based payments under IFRS results in a total charge of $10.5 million to the 2005 income statement - a $6.7 million adjustment compared with UK GAAP.
The change is also expected to result in a total charge of $15 million to the 2006 income statement.
The Dimension Data share was trading at 534c by 10.23am today, after 168 237 shares worth R894 839 changed hands in 37 deals. This was up 8c or 1.5% from yesterday`s close.
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