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- Release Date: 20/06/13 11:28
- Summary: GENERAL: DIL: Diligent Board Member Services Announcement
- Price Sensitive: No
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DIL
20/06/2013 09:28
GENERAL
REL: 0928 HRS Diligent Board Member Services INC (NS)
GENERAL: DIL: Diligent Board Member Services Announcement
20 June 2013
Diligent Board Member Services, Inc. (Diligent)
On June 20, 2013, New Zealand time, Diligent Board Member Services, Inc. (the
"Company") announced that senior management has identified and communicated
to the Audit Committee of the Board of Directors of the Company an error in a
Company revenue recognition practice affecting certain customer agreements.
The error identified is that the Company incorrectly recognized revenue from
new customer agreements and upgrades from the beginning of the month in which
an agreement or upgrade was entered into, rather than pro rata based on the
number of days in the month for which the agreement was in effect as required
by US Generally Accepted Accounting Principles (GAAP). This error does not
affect the total revenues ultimately earned or to be earned, the amount or
timing of cash received or to be received from individual customer
agreements, or the Company's liquidity or overall cash flow.
The Company, with the assistance of its new Chief Financial Officer and in
consultation with its prior and new independent accounting firms, is
continuing to analyze its revenue recognition practices under its customer
agreements to determine whether they are in accordance with GAAP and
applicable accounting guidance. The Company is continuing to review the
financial impact of the identified error prior to making a conclusion as to
whether it is material for the purpose of requiring a restatement in the
Company's historical financial statements for any fiscal period. The Company
expects to make such a conclusion promptly and will update investors at such
time. Going forward, the Company would make an adjustment to the timing of
recognition of revenue, and the related costs, under its customer agreements.
Investor inquiries:
Sonya Joyce
Phone: +64 4 894 6912
Media inquiries:
Geoff Senescall
Phone: +64 21 481 234
End CA:00237620 For:DIL Type:GENERAL Time:2013-06-20 09:28:55
