Safaricom Investment Co-operative board has not proposed any dividends. FILE PHOTO | NATION MEDIA GROUP Its annual report for the period shows that the board has not proposed any dividends, also disclosed as rebates, to its 4,538 members.
Under IFRS 15, the society recognises revenue only when the land has been sold and transferred to the customer as opposed to the previous practice of booking sales after clients pay a deposit.
This saw income from sale of land drop 97.6 percent to Ksh9.78 million ($97,800). Total income from projects –mainly sale of land and housing- dropped by the same margin to Ksh12.7 million ($127,000).
Members of Safaricom Investment Co-operative (SIC) will not earn any return from their share capital for the year ended December 2019 after revenues plunged 89.3 percent on adoption of a new accounting standard.
Its annual report for the period shows that the board has not proposed any dividends, also disclosed as rebates, to its 4,538 members.
This is in contrast to the Ksh375 million ($3.75 million) paid on the year before, with SIC skipping payouts to members for the first time since 2012. The society defines rebates as returns on a member’s shares.
SIC’s revenues declined to Ksh55.9 million ($559,000) in the review period compared to Ksh525 million ($5.25 million) a year earlier as the accounting standard resulted in deferment of Ksh217 million ($2.17 million) worth of income that will now be booked in the current fiscal year.
“Our financial report is prepared in full compliance with International Financial Reporting Standards, including IFRS 15,” SIC said in the report.
“This means that a substantial percentage of our income has been deferred to 2020.”
Under IFRS 15, the society recognises revenue only when the land has been sold and transferred to the customer as opposed to the previous practice of booking sales after clients pay a deposit.
This saw income from sale of land drop 97.6 percent to Ksh9.78 million ($97,800). Total income from projects –mainly sale of land and housing- dropped by the same margin to Ksh12.7 million ($127,000).This led to deferred income rising 2.5 times to Ksh290.3 million ($2.9 million). The society says Ksh217.8 million ($2.178 million) relates to land and housing income that was booked as deferred income following the switch to the new accounting standard.SIC posted a net deficit of Ksh88.5 million ($885,000) from previous year’s surplus of Ksh6.9 million ($69,000), reflecting the big impact of the more conservative […]
