(Seoul = Yonhap News) Reporter Kim Yeon-sook = Korea Aerospace Industries Co., Ltd. (KAI) was charged with a penalty of 7.8 billion won from the financial authorities for violating accounting standards.
It is the largest since the financial authorities imposed a penalty of 8 billion won on Samsung Biologics in 2018 for deliberate fraudulent accounting.
[연합뉴스TV 제공]
The Financial Services Commission and the Securities and Futures Commission (Jungseon Committee) imposed a penalty of KRW 78.89 billion on the Korea Aerospace Industry (KAI) for violating accounting standards, and took measures such as two years of auditor designation, a request for correction, and recommendations for improvement of internal control. It was announced on the 17th that the decision was made.
An official from the Financial Services Commission said, “The standard amount of penalty penalty is calculated by multiplying the daily average transaction value by the rate of importance and intentional imposition.” “The scale calculated by summing up the actions,” he explained.
Along with this, the Financial Services Commission recommended the dismissal of the former CEO, officers in charge, and the audit committee, but replaced the notification of the violation as the targets had already resigned.
According to the Financial Services Commission, KAI published its 2011-2017 business report and submitted three securities reports, using financial statements that violate accounting standards.
KAI distorted sales and cost of sales by increasing the construction progress rate by considering the advance payments paid to partner companies as the incurred cost (material cost) regardless of whether the construction was performed or not.
In addition, the cost of sales and sales were overestimated by replacing the cost of a specific project with the cost of another project or by randomly sending out deliveries to increase the construction progress rate. Intangible assets (development costs) were overstated, and the provision for defect repairs was underestimated.
The Financial Services Commission imposed a penalty of 396 million won on Samil Accounting Firm, which served as KAI’s auditor, 30% additional accumulation of damages compensation joint fund, and a two-year restriction on audit work for KAI.
Unauthorized reproduction-redistribution prohibited
2021/03/17 18:28 sent