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Geomega Announces Results for the Year Ended May 31, 2019 and Restatement of Previously Issued Financial Information
MONTREAL, Sept. 13, 2019 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) today announces it has released its audited co
About this update from Geomega Resources Inc.
[{"type":"text","content":" MONTREAL, Sept. 13, 2019 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX.V: GMA) today announces it has released its audited consolidated financial statements for the year ended May 31, 2019 and that it has restated certain previously issued financial information as identified by its Chief Financial Officer. A summary of the restatement is as follows: Trade and other payables - An error was identified in accounts payable that were overstated by $50,000, an error from the 2017 financial statements. This account payable was offset in the assets by a $50,000 deposit classified in the E&E assets until 2017, when a change in accounting policy transferred E&E assets to the Statement of income. This deposit was therefore expensed removing the counterpart in the balance sheet to offset the account payable. This deposit should have remained as an asset. Calculation of gain on dilution of investment in an associate – An error was identified in the gain on dilution of investment in an associate (Kintavar Exploration Inc.) in the May 31, 2018 financial statements. The investment in an associate and the gain on dilution of investment in an associate were underestimated by $129,632 as of May 31, 2018. The tables below summarize the adjustments in the May 31, 2018 and May 31, 2017 Financial Statements. Readers are encouraged to review note 4.6 of the financial statements for further details on the restatements. All amounts are in Canadian dollars. Extract from the consolidated Statement of financial position As at May 31, 2018, as presented Restatement As at May 31, 2018,Restated* $ $ $ Investment in an associate 1,662,610 129,632 1,792,242 Total assets 2,615,492 129,632 2,745,124 Trade and other payables 383,179 (50,000 ) 333,179 Total liabilities 1,059,298 (50,000 ) 1,009,298 Deficit (32,335,402 ) 179,632 (32,155,770 ) Equity 1,556,194 179,632 1,735,826 Total liabilities and equity 2,615,492 129,632 2,745,124 As at May 31, 2017, as presented Restatement As at May 31, 2017Restated* $ $ $ Trade and other payables 439,994 (50,000 ) 389,994 Total liabilities 917,834 (50,000 ) 8...