NZ Farming Systems blunder prompts NZX query

Thursday 27th August 2009

New Zealand Farming Systems Uruguary Ltd. included an internal note in its annual results from a staff member saying "fudge this," prompting a "please explain" note from the New Zealand market regulator, NZX. The shares tumbled 8.7% to 42 cents.

On note 3 to the financial statements on depreciation, the words "fudge this to equal depn in FA note 11 $2391 - via no ca" were included in the version sent to the NZX for public release, although this had been deleted in the version approved by the company's board of directors.

In a letter to the NZX, PGG Wrightson Ltd.'s general counsel, Julian Daly, acknowledged that while the comment was "regrettable and disappointing...we would assure NZX and the market that the comment should not be a case for concern regarding the accuracy of the Financaial Statements".

"While the words in the comment were not well chosen, they werely a prompt for the author to reconfirm the rounding difference expressed in an early draft of the Financial Statements where there was a minor rounding discrepancy."

The depreciation figure in the accounts was "true and accurate in all material respects".

Farming Systems posted a US$15.6 million operating loss yesterday.

Businesswire.co.nz

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