Washington, D.C., February 12, 2008—IFC, a member of the World Bank Group, today announced that it had completed restatement of its audited consolidated financial statements for the last three fiscal years ended June 30, 2007.
As previously announced on November 21, 2007, the decision to restate followed discussions with IFC’s independent auditors concerning the most appropriate accounting under Statement of Financial Accounting Standards (FAS) No. 133.
As a result, IFC today reported an overall $128 million decrease in net income to $2.490 billion for the year ended June 30, 2007. There were also overall decreases in net income for FY 2006 and FY 2005 of $14 million and $1 million, respectively.
The restatement was driven by changes in accounting for certain derivative transactions. Under FAS No. 133, profit-sharing and other features associated with some investments held by IFC should have been accounted for as derivatives, in amounts that reflected their fair value.
IFC also determined that two loans should have been reclassified as debt securities under FAS No. 115 and that the carrying value of debt securities should have been decreased by $16 million at the end of FY 2007.
IFC said it expects to publish financial statements for the quarter ended September 30, 2007, in a few days.
For more information, visit www.ifc.org/investors.
Contact:
Elizabeth Price
Communications Officer
Phone: (202) 458-0387
E-mail: EPrice@ifc.org
