2012-06-13
AB “Gubernija” was warned regarding the law infringement and instructed to eliminate deficiencies in its financial accounting
After investigating the law infringement case, the Supervision Service of the Bank of Lithuania warned the financial market participant AB “Gubernija” (Šiauliai) about the infringement of Paragraph 5 of Article 21 of the Securities Law. This company did not comply with the requirements to issuers, whose securities are traded in the regulated market, to manage their accounting and compile their annual financial statements following the International Accounting Standards (IAS) and other legal acts. The Supervision Service instructed AB “Gubernija” to correct the financial accounting deficiencies.
The former Securities Commission, whose functions were taken over by the Bank of Lithuania from the beginning of this year, conducted an inspection and stated in its inspection statement of 22 December 2011 that the annual financial statements of AB “Gubernija” for 2010 were incompliant with the IAS.
The Supervision Service’s decision indicates that the financial statements of AB “Gubernija” for 2010 do not comply with the provisions of Article 27 of IAS 1 “Presentation of Financial Statements”, Article 33 of IAS 2 “Inventories”, Article 55 of IAS 16 “Property, Plant and Equipment”, Article 9 of IAS 36 “Impairment of Assets” and Articles 14 and 63 of IAS 39 “Financial Instruments: Recognition and Measurement”. In addition, the information presented in the company’s explanatory letter and the accounting policy used by AB “Gubernija” for the compilation of financial statements do not comply with the IAS requirements.
AB “Gubernija” was instructed to retrospectively correct the financial statements according to the IAS requirements when preparing the interim 6-month statements for 2012 and the annual statements for 2012. The information provided by the company in the explanatory letter of the financial statements for 2012 should comply with the IAS requirements.
AB “Gubernija” should prepare a new accounting policy compliant with the IAS requirements by 31 December 2012.