One Communications has admitted making an error in its six-month unaudited financial statements published last December.
And now the Bermuda Stock Exchange has extended the deadline for the telecommunications firm to file its full-year audited financial statements by two months.
One said in a filing with the BSX that the error related to the accounting treatment of the firm’s acquisition of Bermuda Digital Communications in May 2016 — a transaction for which One had booked a provisional estimated gain of $22 million that will “no longer apply”.
The transaction should have been booked as a “reverse acquisition” whereby BDC, rather than One, was the acquirer solely for accounting purposes, One said in its statement today.
“The company’s unaudited six-month financial statements issued on December 14, 2016 for the period ended September 30, 2016 should not be relied on as they do not reflect the correct accounting treatment,” One stated.
“In particular, it should be noted that the unaudited six-month results reflected a provisional estimated accounting gain on the acquisition of BDC that will no longer apply, as BDC is now deemed to be the accounting acquirer.”
BDC is the wireless services part of the One group, formerly known as CellOne.
One stressed: “This adjustment is solely a result of a change in accounting treatment for the transaction and does not reflect changes in the operational or financial performance of the company, the legal structure of the completed transaction or the ownership structure of the company and its subsidiaries.
“BDC remains a wholly-owned indirectly held subsidiary of the company.”
Earlier today the BSX issued a statement saying One had “requested, and received, permission from the Bermuda Stock Exchange to extend the deadline for filing their December 31, 2016 audited financial results from June 30, 2017 to August 31, 2017”.
One was formerly known as KeyTech Ltd and owns the businesses formerly known as CellOne, Logic Communications and Bermuda CableVision.
Last year, US firm ATN International took a 51 per cent stake in KeyTech, with the BDC transaction a part of the deal.
In February this year, KeyTech changed its name to One Communications, reflecting the brand name applied to its suite of telecommunications services.