VANCOUVER, Feb. 23 /CNW/ - Anooraq Resources Corporation ("Anooraq" or
the "Company") (TSXV:ARQ; NYSE Alternext:ANO; JSE:ARQ) announces that its
application to early adopt International Financial Reporting Standards
("IFRS") has been approved by the British Columbia Securities Commission.
The Company has chosen to early adopt IFRS and will commence reporting
under these standards for the period beginning January 1, 2009. Comparative
periods for fiscal 2008 will also be restated under IFRS.
As background, in February 2008, the Canadian Accounting Standards Board
confirmed that IFRS will replace Canadian generally accepted accounting
policies ("GAAP") for all publicly accountable enterprises for financial
periods beginning on and after January 1, 2011, with the option available for
enterprises to early adopt upon receipt of approval from the Canadian
Securities regulatory authorities. The United States Securities and Exchange
Commission has also authorized foreign private issuers to file financial
statements using IFRS without having to include US GAAP reconciliation.
Adoption of IFRS will result in a single accounting standard whereas
currently we report under Canadian GAAP with US GAAP reconciliation. The
Company's South African subsidiary, Plateau Resources (Proprietary) Limited,
currently reports under IFRS. The use of a single accounting standard will
allow the Company to reduce costs and streamline its financial reporting by
developing common reporting systems and consistency across its subsidiaries
and joint ventures.
The Company has established a comprehensive convergence plan and
established a Steering Committee to manage the transition and provide regular
updates on the progress of the convergence project to the Company's Audit
Committee and the Board of Directors. A detailed timetable was prepared to
manage Anooraq's transition to IFRS, which is largely complete.
The transition consists of three primary phases:
- Initial Scoping and Impact Assessment Analysis: to isolate key areas
that will be impacted by the transition to IFRS.
- Evaluation and Design: to identify specific changes required to
existing accounting policies, information systems and business
processes, together with an analysis of policy alternatives allowed
under IFRS and development of draft IFRS financial statements.
- Implementation and Review: to execute the changes to information
systems and business processes, completing formal authorization
processes to approve recommended accounting policy changes and
training programs across the Company's finance and other staff, as
necessary. It will culminate in the collection of financial
information necessary to compile IFRS-compliant financial statements,
embedding IFRS principles in business processes, and Audit Committee
approval of IFRS financial statements.
Disclosure of the transition process is planned to proceed as follows:
- Additional details on the convergence plan and transition process
have been included in the Company's Amended Management Discussion and
Analysis for the period ended September 30, 2008, which has been
filed at www.sedar.com.
- The Company's annual Management Discussion and Analysis for the year
ended December 31, 2008, will include, to the extent known,
quantitative information regarding the impact of adopting IFRS on key
line items in the annual financial statements.
- The Company's first financial statements completed under IFRS will be
the interim financial statements for the three months ending March
31, 2009, which will include notes disclosing extensive transitional
information and full disclosure of all new IFRS policies.
On behalf of the Board of Directors
President and CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
The NYSE Alternext has neither approved nor disapproved the contents of
this press release.
For further information:
For further information: on Anooraq and its South African properties,
please visit our website www.anooraqresources.com or call investor relation
services in South Africa at +27 11 883 0831 or in North America at