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

    




 QUEBEC CITY, Sept. 21, 2011 /CNW Telbec/ - Novik Inc.   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. 

Novik Inc.


CONTACT:  Source :  Novik inc.For further information:Pascal Bouthot, CAVice-President, FinancesTel. : [phone]E-mail : [e-mail] 


    

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