Hungarian Telephone and Cable Corp. announced that during the preparation of its quarterly report for the Q2 2007, it determined that they made some clerical calculation errors in 2006 in certain operating contracts.
Hungarian Telephone and Cable Corp. announced today that during the preparation of its quarterly report on Form 10-Q for the quarterly period ended June 30, 2007, HTCC determined that it made some clerical calculation errors in 2006 related to the application of SFAS No. 133 „Accounting for Derivative Instruments and Hedging Activities”, as amended, with respect to some embedded derivatives that are contained in certain operating contracts that HTCC's subsidiaries entered into which are settled in euros.
HTCC has informed its former independent public accounting firm about this matter. HTCC is working to determine the effect of such errors on its prior financial statements. At this point, HTCC estimates that the cumulative effect through December 31, 2006 would be a non-cash corrective charge of approximately $2.0 million. HTCC expects to file its Quarterly Report on Form 10-Q on, or before, August 14, 2007. (press release)