5. Restatement of previously reported information

On 1 October 2013, the Company completed the second stage of the reorganization by combining with OJSC Svyazinvest (refer to Note 1). In accordance with Group accounting policy all comparatives were revised as if the reorganization had occurred at the beginning of the earliest comparative period presented. The following tables illustrates the effects of reorganization on assets, liabilities, profit and loss for 2012 and 2011:


Assets and liabilities of the Group as at Consolidated assets and liabilities of the Group as previously reported Assets and liabilities of merged companies and eliminations
31 December 2012 31 December 2011 31 December 2012 31 December 2011 31 December 2012 31 December 2011
ASSETS
Non–current assets
Property, plant and equipment 399,917 348,493 385,994 335,205 13,923 13,288
Investment property 274 259 274 259
Goodwill and other intangible assets 88,329 89,340 87,830 88,937 499 403
Investments in equity accounted investees 775 773 37,389 34,746 (36,614) (33,973)
Other investments 3,035 1,829 2,498 3,635 537 (1,806)
Deferred tax asset   2,722 1,220 2,694 1,127 28 93
Other non–current assets 5,469 13,841 5,413 13,562 56 279
Total non–current assets 500,521 455,755 522,092 477,471 (21,571) (21,716)
Current assets
Inventories 4,990 5,172 4,534 4,763 456 409
Trade and other accounts receivable 35,882 30,512 33,992 28,790 1,890 1,722
Prepayments 4,416 2,945 3,912 2,706 504 239
Prepaid income tax 2,951 3,384 2,921 3,309 30 75
Other investments 3,492 4,609 952 3,926 2,540 683
Cash and cash equivalents 13,629 9,634 10,370 7,380 3,259 2,254
Other current assets 908 1,109 857 1,007 51 102
Total current assets 66,268 57,365 57,538 51,881 8,730 5,484
Assets held for sale 401 261 401 261
Total assets 567,190 513,381 580,031 529,613 (12,841) (16,232)
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Group
Share capital 97 97 106 106 (9) (9)
Additional paid–in capital 4,344 4,743 34,839 34,739 (30,495) (29,996)
Treasury shares (34,822) (18,388) (36,615) (17,164) 1,793 (1,224)
Retained earnings and other reserves 266,607 235,158 257,143 247,253 9,464 (12,095)
Total equity attributable to equity holders of the Group 236,226 221,610 255,473 264,934 (19,247) (43,324)
Non–controlling interests 2,606 9,588 493 7,784 2,113 1,804
Total equity 238,832 231,198 255,966 272,718 (17,134) (41,520)
Non–current liabilities
Loans and borrowings 152,874 94,640 150,907 91,851 1,967 2,789
Employee benefits 10,861 11,046 12,130 11,752 (1,269) (706)
Deferred tax liabilities 23,107 20,518 23,236 20,813 (129) (295)
Accounts payable, provisions and accrued expenses 238 19,695 230 85 8 19,610
Other non–current liabilities 4,136 3,689 4,136 3,689
Total non–current liabilities 191,216 149,588 190,639 128,190 577 21,398
Current liabilities
Loans and borrowings 65,016 82,453 63,499 80,972 1,517 1,481
Accounts payable, provisions and accrued expenses 61,839 41,279 59,889 39,196 1,950 2,083
Income tax payable 55 243 50 242 5 1
Other current liabilities 10,232 8,620 9,988 8,295 244 325
Total current liabilities 137,142 132,595 133,426 128,705 3,716 3,890
Total liabilities 328,358 282,183 324,065 256,895 4,293 25,288
Total equity and liabilities 567,190 513,381 580,031 529,613 (12,841) (16,232)

Profit and loss of the Group as at Profit and loss of the Group as previously reportedProfit and loss of merged companies and eliminations
12 Months ended 31 December 12 Months ended 31 December12 Months ended 31 December
  2012 2011 2012 2011 2012 2011
Revenue 332,435 312,330 321,251 301,494 11,184 10,836
Operating expenses
Wages, salaries, other benefits and payroll taxes (88,815) (80,801) (84,308) (76,252) (4,507) (4,549)
Depreciation, amortisation and impairment losses (66,511) (59,322) (64,729) (57,524) (1,782) (1,798)
Interconnection charges (48,858) (42,123) (47,312) (40,736) (1,546) (1,387)
Materials, utilities, repairs and maintenance (28,483) (29,004) (27,358) (27,507) (1,125) (1,497)
Gain/ (loss) on disposal of property, plant and equipment (752) (829) (822) (792) 70 (37)
Doubtful debt allowance (1,389) (632) (1,318) (572) (71) (60)
Other operating income 14,749 15,703 13,868 14,712 881 991
Other operating expenses (58,545) (55,286) (55,447) (52,634) (3,098) (2,652)
Total operating expenses, net (278,604) (252,294) (267,426) (241,305) (11,178) (10,989)
Operating profit 53,831 60,036 53,825 60,189 6 (153)
Share of profit (loss) in equity accounted investees 53 198 4,293 4,474 (4,240) (4,276)
Finance costs (16,278) (14,572) (16,005) (13,069) (273) (1,503)
Other investing and financial gains 4,408 2,194 1,440 2,078 2,968 116
Foreign exchange loss, net 489 (378) 480 (377) 9 (1)
Profit before income tax 42,503 47,478 44,033 53,295 (1,530) (5,817)
Income tax expense (9,301) (10,659) (8,793) (10,767) (508) 108
Profit for the year 33,202 36,819 35,240 42,528 (2,038) (5,709)