TORONTO and MELBOURNE, Australia, Dec. 13, 2023 (GLOBE NEWSWIRE) -- Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("Banxa'' or the "Company") announces an update on the FY23 audit.
Banxa’s audit partner, PKF Antares (“PKF”), provided their final view on Banxa’s agency revenue recognition policy. Despite the independent accounting firm’s opinion and several detailed discussions on the IFRS standard, PKF have maintained their original position on Banxa’s agency revenue recognition policy.
Banxa is disappointed with this outcome, especially considering that Banxa’s agency revenue recognition policy has been reviewed in the past by multiple auditors and the Canadian audit regulator, Canadian Public Accounting Board (“CPAB”). Furthermore, it has been frustrating to have PKF raise the agency revenue recognition policy late into the audit, causing significant delays in the completion of the FY23 audit.
Banxa is committed to completing the FY23 audit as expeditiously as possible, and is evaluating two avenues to completing the audit - 1) deriving a methodology in conjunction with PKF, to restate the FY23 and FY22 agency revenue, that would satisfy PKF’s audit requirements, or 2) getting a qualified opinion of our FY23 audit since the agency revenue recognition does not impact the gross profit or net income figures reported by Banxa. Banxa will have a new timeline for the completion of the audit this week.
Banxa has vigorously defended its agency revenue recognition policy because it strongly believes it is the best application of the IFRS standard and its stance has been validated by multiple auditors and CPAB in previous years. Banxa will continue to uphold its high standards of transparency and accuracy, and will continue to defend its shareholders, employees, and the crypto industry at-large as the company works towards clear standards for publicly traded crypto businesses.
CONTACTS
Media:
Ethan Lyle
banxa@wachsman.com
Investors:
Zafer Qureshi
investors@banxa.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "Zafer Qureshi”
Zafer Qureshi = Executive Director and Head, Corporate Affairs, +1-888-332-2692
