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VietNamNews

Financial statements plagued with errors

Update: March, 27/2013 - 10:16

HA NOI (VNS)— The difference between the pre and post-audit 2012 financial statements of listed companies have thrown up alarming discrepancies.

While in previous years the margins were relatively small, the most recent findings have uncovered a host of anomalies, with companies offering a variety of reasons for the inaccuracies.

Quang Ninh-based Vang Danh Coal (TVD) reported a net profit of VND57.4 billion (US$2.7 million) after audit, while its previous statement had only claimed gains of VND11.6 billion ($552,300).

Other firms also showed increased profits of up to VND100 billion ($4.7 million) such as Drilling Mud Corporation (PVC) and Petrovietnam Technical Services (PVS).

In contrast to these companies, Vietnam National Reinsurance (VNR) saw a decline of VND75 billion ($3.5 million) in net profit after audit, falling to VND255.8 billion ($12.1 million).

But the largest difference belonged to Pha Lai Thermal Power Corporation (PPC), with almost all of the major terms in its financial statements having errors. Combining these outliers, net profit dropped by VND112.2 billion ($5.3 million).

TVD chairman Nguyen Van Trinh explained his company had to disclose quarterly statements within 25 days after the end of the quarters, reports Dau Tu Chung Khoan (Securities Investment)

Therefore, TVD made its report for the fourth quarter of last year on January 19. However, as TVD was a subsidiary of the National Coal – Mineral Industries Group, it had to work with the parent company to settle costs, Trinh said. "We could not do that when making the statement."

According to PVC general director Ton Anh Thi, the difference in his company's statements was due to additional profit from subsidiaries.

In addition, VNR alleged that using accounting standard VAS10 to record the exchange rate was unfavourable for the company. Therefore, it used the guidance in Circular 179/2012/TT-BTC advising accounting treatment of foreign exchange differences. — VNS


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