Restatement or re-presentation?

August 25, 2006

beach.jpegThough footnoted.org doesn’t normally spend a lot of time digging through the filings of foreign-based companies — after all, there’s only so  much time in the day — a regular reader alerted us to something interesting at Interoil (IOC), which according to  this map on its website, is focused on finding oil on what seems like it should be a good place to plunk a fancy beachfront hotel. Hence the photo of the beach in Papua.

Last week, Interoil filed this 6-K, which essentially restated the company’s 2005 earnings from $1.36 to $1.17 a share. Only they didn’t call it a restatement. Indeed, to find it, you need to dig through the filing for the word re-presentation, which you’ll find buried on pg. 56 of the 112-page filing. Now maybe that’s just Canadian-accounting speak, because the company has its North American offices there. Or Australian accounting-speak, since that’s technically where the company is based. Maybe it’s even Papuan accounting-speak. But throw in the fact that the CFO resigned at the end of July, for what seems like strange reasons, and even more questions are raised.

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