LPP fined by the Polish Financial Supervision Authority for errors in reports. It's about war losses

LPP received a decision of the Polish Financial Supervision Authority imposing a fine of PLN 15 million on the company, LPP said in a statement. The decision is not final and can be appealed against.

The penalty was imposed in connection with improper performance of the information obligation regarding periodic information through: incorrect recognition of impairment losses in the consolidated annual report for the 2021/2022 financial year property, plant and equipment and inventories due to the classification of an event occurring after the end of the reporting period as an adjusting event, and the failure to properly recognize write-offs in the consolidated annual report for the financial year 2022/2023.

“The sanction was imposed by the commission as a result of the authority's finding that as of January 31, 2022, due to the situation on the Russian-Ukrainian border, there was no loss of value of the issuer's property, plant and equipment and inventories located in Ukraine and Russia, but only a risk of such loss in the future,” it was written.

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For this reason, the authority decided that the write-offs should be included in the consolidated report of the LPP SA Group for 2022/2023, and not in the earlier annual report for the 2021/2022 financial year, as the issuer did – it was added.

In accordance with the committee's recommendation, LPP has already corrected the reporting documents. The committee's decision and its justification are subject to analysis by the company. The Management Board of LPP is considering using its legal remedies. (PAP Biznes)

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