Change in revenue recognition sees Mutiara Goodyear record 1Q loss of RM3.3mil

KUALA LUMPUR: Mutiara Goodyear Development Bhd recorded a net loss of RM3.26 million for its first quarter (1Q) financial results ended July 31, 2010 compared with a net profit of RM1.42 million a year ago.

The Group, in its filing with Bursa Malaysia on Wednesday, Sept 22, attributed this to the adoption of IC Interpretation 15 of revenue recognition.

“As a result of the early adoption of IC Interpretation 15 (IC 15) revenue recognition from property development activities changes from the percentage of completion method to the completed method,” the Group said.

“If the Group has not early adopted IC 15, the revenue based on percentage of completion is RM25.0 million. Accordingly, total deferred revenue from progress billings issued from property development activities stood at RM112.0 million for the current quarter under review,” it added.

Under the current accounting standard, revenue for Mutiara Goodyear dropped 82% to RM1.24 million from RM6.85 million a year ago.

The basic loss per share is 1.41 sen for the quarter, compared with earnings per share of 0.62 sen a year ago. Net assets per share is RM1.34 versus RM1.35 last year.