Novik re-files its interim financial statements of March 31, 2011 and June 30, 2011

QUEBEC CITY, Sept. 21, 2011 /CNW Telbec/ - Novik Inc. (TSXV: NVK) re-files today its interim condensed consolidated financial statements of March 31, 2011 and June 30, 2011.  Following review of these Interim Condensed Consolidated Financial Statements by The Autorité des marchés financiers du Québec, Novik had to proceed with restatements related to the transition to IFRS.

Novik has firstly restated its IFRS comparative balance sheet as at December 31, 2010 by reclassifying an amount of $7,863,902 from long-term debt in current liabilities. This reclassification followed the application of IAS 1 Presentation of financial statements, which requires to present in current liabilities any debt for which the company does not have unconditional right to defer settlement for at least twelve months after the reporting date. As at December 31, 2010, the company did not meet same financial ratio on certain long-term debts. In February 2011, an agreement on refinancing these debts was obtained allowing the company to respect this financial ratio. Thus, in accordance with IAS 1, Novik has reclassified an amount of $7,863,902 of long-term debt in current liabilities as the refinancing was not obtained before the reporting date.

Novik has also amended the presentation of its interim condensed consolidated statement of comprehensive income to present operating expenses by function, as required by IAS 1. This change had the effect of allocating the amortization expense between the various functions, but had no impact on the total comprehensive income.

Finally, Novik has changed the adjustment on accumulated depreciation of property, plant and equipment at transition to IFRS as at January 1st, 2010. This modification results from the fact that the company has changed the useful life of some molds from 300 months to 46 months following a further analysis of the contracts signed with its customers. Since this information was available at the transition date, it should have been reflected in IFRS adjustments as at January 1st, 2010. That led the company to change its adjustments retroactively. Thus, the adjustment of consolidated equity as at January 1st, 2010 was reduced by $ 52,553 related to Property, plant and equipment and increased by $ 16,817 due to the adjustment of related deferred income taxes. Consequently, the quarterly amortization expense was subsequently modified to be increased by $ 15,766, while the quarterly deferred income taxes expense has been reduced by $ 5,045, for a net impact of a decreased of the total quarterly comprehensive income of $ 10,721.

About Novik

Novik Inc. is a leader in the manufacturing and marketing of innovative polymer exterior siding and roofs, replacing traditional materials such as stone, brick, and wood at a lower cost. The target market is the global residential and commercial construction industry. Readers may visit at www.novik.com to learn more about Novik.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

SOURCE Novik Inc.

For further information:

Source :  

Novik inc.

For further information:

Pascal Bouthot, CA
Vice-President, Finances
Tel. : (418) 878-6161
E-mail : pasbou@novik.com

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Novik Inc.

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