The Polish Financial Supervision Authority imposed a fine on LPP. The company is analyzing the decision and considering an appeal
The Polish Financial Supervision Authority imposed a fine of PLN 15 million on LPP – the listed company said in a statement. The decision is not final and can be appealed against.
The penalty was imposed in connection with improper fulfillment of the reporting obligation in the field of periodic information by: incorrect inclusion in the consolidated annual report for the 2021/2022 financial year of impairment losses on property, plant and equipment and inventories as a result of qualifying an event occurring after the end of the reporting period as an adjusting event, and failure to properly recognize the write-offs in the consolidated annual report for the 2022/2023 financial year.
“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.
“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 added.
In line 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.
