CALGARY, May 1 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the "Corporation" ) announced that it will restate its financial statements for the three month period ended December 31,2006. The Corporation has determined that the amount of deferred charges of $5,119,000 stated in the balance sheet at December 31, 2006 was misstated. The deferred charges represent transaction costs that are directly attributable to issuing "other than as held for trading" financial liabilities. According to the recommendation in "CICA" Handbook section 3855.57(a), effective October 1, 2006, these transaction costs should be recognized in net income. The cumulative effect of the change in accounting for transaction costs will be reflected as adjustments of $3,123,000 to the opening balance of retained earnings; $248,000 to net income and $1,748,000 to future income tax recoverable in the financial statements for the period ended December 31, 2006.
About Mainstreet
Mainstreet is a Calgary-based, growth-oriented real estate corporation focused on the acquisition, redevelopment, repositioning, asset and property management of mid-market apartment buildings. The Corporation currently owns and operates residential rental units, including apartments and townhouses, in Vancouver/Lower Mainland (Surrey), Calgary, Edmonton, Saskatoon and Greater Toronto Area.
The above disclosure may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including: the impact of general economic conditions in Canada, industry conditions, increased competition, the lack of available qualified personnel or management, equipment failures, stock market volatility, and fluctuations in rental prices, energy costs and foreign exchange or interest rates. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits the Corporation will derive from them.
Additional information is available at:
www.mainst.biz,
www.sedar.com