Attached files
| file | filename |
|---|---|
| EX-99.3 - Freedom Holding Corp. | ex993form8k041811.htm |
| 8-K - FORM 8-K DATED APRIL 18, 2011 - Freedom Holding Corp. | form8k041811.htm |
| EX-99.1 - Freedom Holding Corp. | ex991form8k041811.htm |
Exhibit 99.2
RECONCILIATON OF US GAAP AND IFRS FINANCIAL INFORMATION
As of December 31, 2010:
| Consolidated US GAAP | Intercompany Loans | US GAAP BMB Munai | US GAAP Emir Oil | Adjustments | IFRS Emir Oil | |||
| USD | USD | USD | USD | USD | USD | |||
|
CURRENT ASSETS
|
18,299,566
|
-
|
3,301,439
|
(a)
|
14,998,127
|
(314,869)
|
(e)
|
14,683,258
|
|
LONG TERM ASSETS
|
292,404,785
|
146,588,461
|
171,172,331
|
(a)
|
267,820,915
|
(68,178,635)
|
(b)
|
199,642,280
|
|
TOTAL ASSETS
|
310,704,351
|
146,588,461
|
174,473,770
|
282,819,042
|
(68,493,504)
|
214,325,538
|
||
|
CURRENT LIABILITIES
|
22,167,756
|
-
|
2,791,468
|
(a)
|
19,376,288
|
2,202,216
|
(c)
|
21,578,504
|
|
LONG TERM LIABILITIES
|
73,126,745
|
146,588,461
|
62,852,374
|
(a)
|
156,862,832
|
(13,205,664)
|
(d)
|
143,657,168
|
|
TOTAL LIABILITIES
|
95,294,501
|
146,588,461
|
65,643,842
|
176,239,120
|
(11,003,448)
|
165,235,672
|
||
|
SHAREHOLDER'S EQUITY
|
215,409,850
|
-
|
108,829,928
|
(a)
|
106,579,922
|
(57,490,056)
|
(f)
|
49,089,866
|
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
|
310,704,351
|
146,588,461
|
174,473,770
|
282,819,042
|
(68,493,504)
|
214,325,538
|
||
|
NET INCOME (LOSS) FOR THE PERIOD
|
1,678,764
|
-
|
(10,946,563)
|
(g)
|
12,625,327
|
(13,953,108)
|
(h)
|
(1,327,781)
|
RECONCILIATON OF US GAAP AND IFRS FINANCIAL INFORMATION
As of March 31, 2010:
| Consolidated US GAAP | Intercompany Loans | US GAAP BMB Munai | US GAAP Emir Oil | Adjustments | IFRS Emir Oil | |||
| USD | USD | USD | USD | USD | USD | |||
|
CURRENT ASSETS
|
16,947,713
|
-
|
3,023,802
|
(a)
|
13,923,911
|
(167,202)
|
(e)
|
13,756,709
|
|
LONG TERM ASSETS
|
274,932,305
|
149,038,512
|
174,445,849
|
(a)
|
249,524,968
|
(57,378,859)
|
(b)
|
192,146,109
|
|
TOTAL ASSETS
|
291,880,018
|
149,038,512
|
177,469,651
|
263,448,879
|
(57,546,061)
|
205,902,818
|
||
|
CURRENT LIABILITIES
|
9,392,879
|
-
|
764,252
|
(a)
|
8,628,627
|
(623,807)
|
(e)
|
8,004,820
|
|
LONG TERM LIABILITIES
|
72,224,647
|
149,038,512
|
62,178,119
|
(a)
|
159,085,040
|
(13,674,807)
|
(d)
|
145,410,233
|
|
TOTAL LIABILITIES
|
81,617,526
|
149,038,512
|
62,942,371
|
167,713,667
|
(14,298,614)
|
153,415,053
|
||
|
SHAREHOLDER'S EQUITY
|
210,262,492
|
-
|
114,527,280
|
(a)
|
95,735,212
|
(43,247,447)
|
(f)
|
52,487,765
|
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
|
291,880,018
|
149,038,512
|
177,469,651
|
263,448,879
|
(57,546,061)
|
205,902,818
|
||
|
NET INCOME (LOSS) FOR THE PERIOD
|
8,993,473
|
-
|
(13,818,721)
|
(g)
|
22,812,194
|
(9,925,668)
|
(h)
|
12,886,526
|
RECONCILIATON OF US GAAP AND IFRS FINANCIAL INFORMATION
As of December 31, 2009:
| Consolidated US GAAP | Intercompany Loans | US GAAP BMB Munai | US GAAP Emir Oil |
Adjustments
|
IFRS Emir Oil
|
|||
| USD | USD | USD | USD | USD | USD | |||
|
CURRENT ASSETS
|
16,156,492
|
-
|
2,668,375
|
(a)
|
13,488,117
|
(200,619)
|
(e)
|
13,287,498
|
|
LONG TERM ASSETS
|
274,713,908
|
150,905,227
|
177,336,822
|
(a)
|
248,282,313
|
(52,383,044)
|
(b)
|
195,899,269
|
|
TOTAL ASSETS
|
290,870,400
|
150,905,227
|
180,005,197
|
261,770,430
|
(52,583,663)
|
209,186,767
|
||
|
CURRENT LIABILITIES
|
12,272,375
|
-
|
1,574,477
|
(a)
|
10,697,898
|
(619,247)
|
(e)
|
10,078,651
|
|
LONG TERM LIABILITIES
|
73,078,634
|
150,905,227
|
61,965,781
|
(a)
|
162,018,080
|
(14,215,447)
|
(d)
|
147,802,633
|
|
TOTAL LIABILITIES
|
85,351,009
|
150,905,227
|
63,540,258
|
172,715,978
|
(14,834,694)
|
157,881,284
|
||
|
SHAREHOLDER'S EQUITY
|
205,519,391
|
-
|
116,464,939
|
(a)
|
89,054,452
|
(37,748,969)
|
(f)
|
51,305,483
|
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
|
290,870,400
|
150,905,227
|
180,005,197
|
261,770,430
|
(52,583,663)
|
209,186,767
|
||
|
NET INCOME (LOSS) FOR THE PERIOD
|
4,677,872
|
-
|
(10,671,443)
|
(g)
|
15,349,315
|
(4,330,902)
|
(h)
|
11,018,413
|
RECONCILIATON OF US GAAP AND IFRS FINANCIAL INFORMATION
As of March 31, 2009:
| Consolidated US GAAP | Intercompany Loans | US GAAP BMB Munai | US GAAP Emir Oil | Adjustments | IFRS Emir Oil | |||
| USD | USD | USD | USD | USD | USD | |||
|
CURRENT ASSETS
|
12,891,196
|
-
|
4,408,754
|
(a)
|
8,482,442
|
(23,138)
|
(e)
|
8,459,304
|
|
LONG TERM ASSETS
|
275,454,865
|
147,649,420
|
175,372,082
|
(a)
|
247,732,203
|
(51,815,593)
|
(b)
|
195,916,610
|
|
TOTAL ASSETS
|
288,346,061
|
147,649,420
|
179,780,836
|
256,214,645
|
(51,838,731)
|
204,375,914
|
||
|
CURRENT LIABILITIES
|
24,109,901
|
-
|
5,000,314
|
(a)
|
19,109,587
|
(100,223)
|
(e)
|
19,009,364
|
|
LONG TERM LIABILITIES
|
72,111,959
|
147,649,420
|
61,331,521
|
(a)
|
158,429,858
|
(15,331,877)
|
(d)
|
143,097,981
|
|
TOTAL LIABILITIES
|
96,221,860
|
147,649,420
|
66,331,835
|
177,539,445
|
(15,432,100)
|
162,107,345
|
||
|
SHAREHOLDER'S EQUITY
|
192,124,201
|
-
|
113,449,001
|
(a)
|
78,675,200
|
(36,406,631)
|
(f)
|
42,268,569
|
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
|
288,346,061
|
147,649,420
|
179,780,836
|
256,214,645
|
(51,838,731)
|
204,375,914
|
||
|
NET INCOME (LOSS) FOR THE PERIOD
|
17,157,558
|
-
|
(24,399,110)
|
(g)
|
41,556,668
|
(14,402,742)
|
(h)
|
27,153,926
|
RECONCILIATON OF US GAAP AND IFRS FINANCIAL INFORMATION
As of March 31, 2008:
| Consolidated US GAAP | Intercompany Loans | US GAAP BMB Munai | US GAAP Emir Oil | Adjustments | IFRS Emir Oil | |||
| USD | USD | USD | USD | USD | USD | |||
|
CURRENT ASSETS
|
26,519,810
|
-
|
16,205,304
|
(a)
|
10,314,506
|
(27,883)
|
(e)
|
10,286,623
|
|
LONG TERM ASSETS
|
228,318,283
|
140,489,270
|
166,339,722
|
(a)
|
202,467,831
|
(42,210,866)
|
(b)
|
160,256,965
|
|
TOTAL ASSETS
|
254,838,093
|
140,489,270
|
182,545,026
|
212,782,337
|
(42,238,749)
|
170,543,588
|
||
|
CURRENT LIABILITIES
|
23,225,460
|
-
|
888,310
|
(a)
|
22,337,150
|
(97,753)
|
(e)
|
22,239,397
|
|
LONG TERM LIABILITIES
|
71,808,702
|
140,489,270
|
60,535,455
|
(a)
|
151,762,517
|
(21,047,602)
|
(d)
|
130,714,915
|
|
TOTAL LIABILITIES
|
95,034,162
|
140,489,270
|
61,423,765
|
174,099,667
|
(21,145,355)
|
152,954,312
|
||
|
SHAREHOLDER'S EQUITY
|
159,803,931
|
-
|
121,121,261
|
(a)
|
38,682,670
|
(21,093,394)
|
(f)
|
17,589,276
|
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
|
254,838,093
|
140,489,270
|
182,545,026
|
212,782,337
|
(42,238,749)
|
170,543,588
|
||
|
NET INCOME (LOSS) FOR THE PERIOD
|
31,610,563
|
-
|
(8,174,776)
|
(g)
|
39,785,339
|
(32,104,725)
|
(h)
|
7,680,614
|
RECONCILIATON OF US GAAP AND IFRS FINANCIAL INFORMATION
|
(a)
|
BMB Munai’s stand alone balances are excluded from the consolidated US GAAP balances to arrive at Emir Oil’s US GAAP stand alone balances.
|
|
(b)
|
The Company adjusted its long term assets to account for:
|
|
-
|
The adjustment of geological and geophysical costs capitalized under US GAAP, full cost method of accounting, which were expensed to retained earnings or net income according to the successful efforts method of accounting under IFRS.
|
|
-
|
The adjustment of depletion expense based on the adjusted proved developed reserves and adjusted depletable base using the successful efforts method of accounting under IFRS.
|
|
-
|
The removal of interest expense on intercompany loans capitalized to oil and gas properties under US GAAP, which was expensed to retained earnings or net income under IFRS.
|
|
(c)
|
The Company adjusted its current liabilities to account for:
|
|
-
|
The transfer of a share-based liability of BMB Munai to be settled in cash by Emir Oil for 3D seismic services.
|
|
(d)
|
The Company adjusted its long term liabilities to account for:
|
|
-
|
Intercompany loans and accrued interest expense reflected at fair value according to IFRS.
|
|
-
|
Deferred tax liability recalculated for IFRS purposes considering the updated oil and gas properties.
|
|
(e)
|
The Company adjusted its current assets to account for:
|
|
-
|
Certain immaterial reclassifications between other assets and other liabilities.
|
|
(f)
|
The Company adjusted its shareholders’ equity to account for:
|
|
-
|
Amounts resulting from recognition of fair value of intercompany loans and accrued interest from the parent company.
|
|
-
|
Retained earnings adjustment from additional depletion, interest expense on intercompany loans.
|
|
(g)
|
BMB Munai’s stand alone income and expenses are excluded from the consolidated US GAAP income and expenses to arrive at Emir Oil’s US GAAP stand alone income and expenses.
|
|
(h)
|
The Company adjusted its net income to account for:
|
|
-
|
The adjustment of geological and geophysical costs capitalized under US GAAP, full cost method of accounting, which were expensed to retained earnings or net income according to the successful efforts method of accounting under IFRS.
|
|
-
|
The adjustment of depletion expense based on the adjusted proved developed reserves and adjusted depletable base using the successful efforts method of accounting under IFRS.
|
|
-
|
The removal of interest expense on intercompany loans capitalized under US GAAP, full cost method of accounting, which was expensed to retained earnings or net income.
|