Koor announces NIS 383m loss on currency conversion differences - TheStreet

Koor Industries (NYSE:KOR) announced it will be posting an NIS 383 million loss on accrued conversion differences, which it is transferring to the "shareholders equity surplus" section in its balance sheet.

If the move is approved by the directors, the sum will be included in Koor's first quarter figures as "other results".

The company's announcement follows a story in Ma'ariv today, that Koor will be registering an NIS 400 million write-off for the first quarter, over and above the company's NIS 100 million loss for the quarter.

It's a technical accounting adjustment that has no ramifications for the company's balance sheet or financial soundness, Koor chief financial officer, Yuval Yanai, told TheMarker.

"There is no cash associated with this move, only a reclassification between two balance sheet items that have to go through the income statement," he told Reuters.

Koor subsidiary Tadiran Communications had been building up the accrued conversion differences since the 1980s, he explained: While Koor does its books in shekels, Tadiran registered its results in dollars. Over the years the difference accruing between the two systems grew and grew.

Now that Tadiran is undergoing voluntary liquidation, and that Koor has sold most of Tadiran's assets, under accounting regulations -Koor has to make the adjustment.