Cash Converters International Ld Final Results -6-

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 Profit attributable to members 
  of Cash Converters International 
  Limited                                                     29,416,024     27,692,433 
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Prior year adjustment

The Group has recently concluded discussions with the United Kingdom Financial Reporting Review Panel (FRRP) in relation to the accounting that was adopted for the acquisition, during the year ended 30 June 2010, of a right previously held by Quickdraw Financial Solutions Pty Ltd to provide the cash advance platform and associated services to Franchisees within South Australia and the Northern Territories. This transaction had originally been treated as the acquisition of a reacquired right and amortised over its useful economic life of 100 years from the date of acquisition.

Following discussions with the FRRP, and as disclosed in the Group's financial report for the half-year ended 31 December 2011, it has been concluded that the payment made should have been accounted for as a termination payment in accordance with AASB 138 'Intangible Assets' and not capitalised and subsequently amortised.

Consequently, the accounting treatment has been amended by restating the affected line items within the consolidated Statement of Financial Position as at 30 June 2011 and 30 June 2010 and the consolidated statement of comprehensive income for the year ended 30 June 2011.

The adjustment resulted in a reduction of $5,750,000 and $5,693,000 as at 1 July 2010 and 30 June 2011 respectively to other intangible assets and retained earnings with a consequent reduction in net assets of the same amount and a $57,000 increase in net profit for the year ended 30 June 2011 being amortisation previously charged.

There is no material impact on earnings per share or cashflows for either of the periods presented.

This information is provided by RNS

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