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Southern Bank's Net Assets At End 2005 Overstated By RM160 Mln |
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Written by Administrator
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Monday, 04 June 2007 |
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KUALA LUMPUR, June 1 (Bernama) -- Southern Bank Bhd's net assets as at end 2005 had been overstated by about RM160 million, Bumiputra-Commerce Holdings Bhd (BCHB) said today.
It said PricewaterhouseCoopers (PwC) have completed their review of Southern Bank's audited financial statements for 2005 and had confirmed that there were indeed inappropriate accounting treatments of certain transactions in SBB's financial statements for 2005.
KUALA LUMPUR, June 1 (Bernama) -- Southern Bank Bhd's net assets as at end 2005 had been overstated by about RM160 million, Bumiputra-Commerce Holdings Bhd (BCHB) said today.
It said PricewaterhouseCoopers (PwC) have completed their review of Southern Bank's audited financial statements for 2005 and had confirmed that there were indeed inappropriate accounting treatments of certain transactions in SBB's financial statements for 2005.
In a filing to Bursa Malaysia, BCHB said the accounting treatments related to inappropriately valuing certain derivative financial instruments entered into by SBB, not writing down in full the collateral value and wrongly writing back specific provisions made on certain foreclosed properties relating to non-performing loans aged seven years and above, and non expensing of certain costs incurred.
BCHB said the overstatement of RM160 million is approximately 2.4 percent of the purchase consideration of RM6.7 billion paid by Bumiputra-Commerce for SBB.
It said PwC also confirmed that these inappropriate accounting treatments have all been corrected as at June 30, 2006 in the books of BCHB and that no further amendments or corrections were required.
Source : Bernama |
