Impact concludes first loss-making Q3 in four years

Impact Developer & Contractor saw 4.18 million-RON (1.18 million-euro) losses in the third quarter of the year according to new accounting standards. Under the old accounting standards used, the construction and real estate development company’s third quarter loss was only 0.83 million-RON (0.23 million-euro). This is the first time in four years that the company recorded losses in the third quarter. Impact changed its accounting standards in the third quarter in order to comply with new regulations introduced by the Ministry of Finance. This change in practice was the main reason Impact recorded significant drops in profit nine months into the year, compared with figures in the first half of the year. According to the new regulations, revenue for projects which are underway and which are not completed will be recorded only upon completion, whereas the old standards allowed for revenues, as well as profits to be acknowledged as the construction progressed. As of the third quarter, Impact will use the new accounting standards for reports to be submitted to the Ministry of Finance and to the Stock Exchange. “The losses recorded in the third quarter, which showed in the results even under the old accounting standards, were caused by circumstantial factors, induced by the delay in obtaining the whole package of licences for the Rubin complex. The results were also affected by the investments we are making at the moment,” said Dan Ioan Popp, chairman of Impact.