SINGAPORE: The chief executive officer of a Singapore manufacturing firm was fined S$ 22, 400 ( US$ 16, 400 ) on Friday ( Jan 10 ) over the company’s failure to recognise a S$ 16 million impairment loss in its financial statements.
 , Miyoshi Limited’s executive chairman and CEO Andrew Sin Kwong Wah had presented the financial statements for the year ending August 31, 2019 at the company’s annual general meeting, according to the command plate.
However, these remarks did not adhere to the Companies Act’s accounting standards.
The S$ 16 million impairment loss came from a decline in the value of the , company’s equity investment in a foreign company, Core Power ( Fujian ) New Energy Automobile.
Miyoshi invests in the business, and according to its site, it invests in the business to create and market electric cars in China.
When a company’s stock prices fall below what is recorded on the books, an damage damage occurs.
To determine whether the purchase in the Chinese firm was impacted, Miyoshi had engaged an impartial valuation firm.
The impartial valuer’s document review, which was afterwards finalised by the independent appraiser with no substance changes, showed that a substantial damage had occurred.
The Accounting and Corporate Regulatory Authority (ACRA ) claimed that Miyoshi overstated the value of its net assets by the same amount and that the company also failed to recognize the investment loss of$ 16 million.
This meant Miyoshi Group’s economic claims in the 2019 fiscal year were “materially misstated” and gave an “inaccurate image” of the company’s financial health.
Had Miyoshi recognised the S$ 16 million damage decline in its FY2019 financial statements, the group’s lost, before income tax, may include increased by more than 30 days to S$ 16.78 million and its overall assets would have reduced by 19 per cent to about S$ 67.9 million.
The company, which is listed on the Singapore Exchange, called for a trading block at around noon on Friday.  , Shares of , Miyoshi had traded at S$ 0.004 before the afternoon trading bust.
FINANCIAL Comments CHOSEN FOR EXAMEN
ACRA reviewed Miyoshi’s audited financial statements as part of its economic monitoring and surveillance program.  ,
The power checks a number of financial statements to see if they adhere to accounting standards, and Miyoshi’s non-compliance was discovered during the evaluation.
” Managers have a fundamental commitment to provide accurate and reliable monetary details”, said ACRA.
” Providing investors with reliable and important financial data for decision-making will boost investors ‘ and other stakeholders ‘ confidence in the clarity, integrity, and excellent of economic reporting in Singapore”.
A fine of up to S$ 250 000 is assessed for non-compliance with budgeting requirements. For crimes committed on or before Jun 30, 2023, the sentence is a fine of up to S$ 50, 000.
ACRA stated that it would not be hesitant to take legal actions if an accounting standard is broken.
This is done to maintain confidence in the reliability and credibility of economic reporting in Singapore, according to the expert.