Environmental Recycling Technologies plc
42
<Notes to the Financial Statements (continued)
For the year ended 31 December 2007
30. RECONCILIATION OF UK GAAP TO IFRS (continued)
Prior Year - Warrants and Options
During the IFRS conversion project, the directors reviewed a number of contracts. They identified a number of warrants attaching to loans which
had not been previously accounted for. As such, as part of the restatement, the directors have also adjusted the prior year figures to account for
these additional warrants. The effect of these adjustments is summarised below:
31 Dec 01 Jan
2006 2006
£'000 £'000
Adjustment Adjustment
Income statement
Finance costs 571
Balance sheet
Loans 320
Warrant reserve (853)
Equity reserve (38)
IFRS - IAS 38 - Development expenditure
Income statement
Administrative expenses - discontinued operations 60 (595)
Loss on disposal 535 -
Balance sheet
Intangible assets (535) 661
Provision for amortisation (60) (66)
Other than presentational issues, the only adjustment on implementing IFRS is to capitalise development costs in accordance with IAS 38.
These costs were capitalised in the company's subsidiary which was sold during 2006.
