SIX Swiss Exchange has issued a reprimand against Orascom Development Holding Ltd on the grounds of a breach of IFRS financial reporting standards in its 2008 semi-annual statements. The reprimand relates to the incorrect calculation of earnings per share.
In its semi-annual financial statements for 2008 Orascom Development Holding Ltd, which is listed in the Main Segment of SIX Swiss Exchange, reported earnings per share that were CHF 0.43, or 18%, higher than the true figure. The investigations conducted by SIX Swiss Exchange revealed that, contrary to the provisions of IAS 33 "Earnings per Share", minority shares in the group's result had also been included in the calculation. This resulted in the earnings per share attributable to shareholders being incorrectly reported as CHF 0.43 too high.
Orascom Development Holding Ltd reacted immediately after it was made aware of the mistake. On 15 September 2008, it published a corrected version of its 2008 semi-annual financial statements, together with an explanatory media release. The company will also correct and disclose the error in its semi-annual financial statements for 2009.
Taking all aspects of the present case into consideration, SIX Swiss Exchange issued a sanction decision and has reprimanded Orascom Development Holding Ltd.
Periodic financial reporting in compliance with applicable financial reporting regulations is part of the information that contributes to a functioning market, as required by the Swiss Stock Exchange Act and the Listing Rules. One of the tasks of SIX Swiss Exchange is to ensure that the transparency rules imposed on issuers are enforced.
Information on financial reporting regulations can be found at:
http://www.six-swiss-exchange.com/admission/being_public/financial_reporting_en.html
Sanctions imposed to date in connection with financial reporting can be found at:
http://www.six-swiss-exchange.com/admission/being_public/sanctions/media_releases/financial_reporting_en.html
