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Mainstreet Equity Corp. announces restatement of financial statements
Mainstreet Equity Corp. announces restatement of financial statements.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, May 1 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the\n"Corporation" ) announced that it will restate its financial statements for\nthe three month period ended December 31,2006. The Corporation has determined\nthat the amount of deferred charges of $5,119,000 stated in the balance sheet\nat December 31, 2006 was misstated. The deferred charges represent transaction\ncosts that are directly attributable to issuing "other than as held for\ntrading" financial liabilities. According to the recommendation in "CICA"\nHandbook section 3855.57(a), effective October 1, 2006, these transaction\ncosts should be recognized in net income. The cumulative effect of the change\nin accounting for transaction costs will be reflected as adjustments of\n$3,123,000 to the opening balance of retained earnings; $248,000 to net income\nand $1,748,000 to future income tax recoverable in the financial statements\nfor the period ended December 31, 2006.\n\n\nAbout Mainstreet\n\n\nMainstreet is a Calgary-based, growth-oriented real estate corporation\nfocused on the acquisition, redevelopment, repositioning, asset and property\nmanagement of mid-market apartment buildings. The Corporation currently owns\nand operates residential rental units, including apartments and townhouses, in\nVancouver/Lower Mainland (Surrey), Calgary, Edmonton, Saskatoon and Greater\nToronto Area.\n\n\nThe above disclosure may contain forward-looking statements that involve\nsubstantial known and unknown risks and uncertainties. These forward-looking\nstatements are subject to numerous risks and uncertainties, some of which are\nbeyond the Corporation's control, including: the impact of general economic\nconditions in Canada, industry conditions, increased competition, the lack of\navailable qualified personnel or management, equipment failures, stock market\nvolatility, and fluctuations in rental prices, energy costs and foreign\nexchange or interest rates. The Corporation's actual results, performance or\nachievements could differ materially from those expressed in, or implied by,\nthese forward-looking statements and, accordingly, no assurances can be given\nthat any of the events anticipated by the forward-looking statements will\ntranspire or occur, or, if any of them do so, what benefits the Corporation\nwill deri...