Tan Tao Investment Industry Corporation (HoSE: ITA) has explained difference of figures in the financial statement of Q2/2010 and the first 6 months 2010 as follows:
* After-tax profit in the financial statement of Q2/2010: VND155.623 billion
* After-tax profit in the examined financial statement of the first 6 months 2010: VND460.356 billion.
Reason:
In the first 6 months 2010, ITACO recorded dividend from its subsidiaries as the Tan Tao Office & Plant Service and Trading Co., Ltd. (100% capital of ITACO) worth VND70 billion and the Tan Duc Investment JSC (94% capital of ITACO) worth VND250 billion. Because these were the internal earnings, they were deducted in the integrated financial statement. Thus, the amount was recorded in the item “undistributed profit” in the financial statement of ITACO. However, when the Ernst & Young audited the statement, it transferred the amount to the item “financial income” in the report of the business result of ITACO. This made difference of after-tax profit in the financial statement done by ITACO and Ernst & Young.
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