Brief: Polytec Holding AG Says Austrian Financial Reporting Enforcement Panel Identified Accounting Error

Polytec Holding AG

25/11/2021 14:34

Nov 25 (Reuters) - POLYTEC HOLDING AG  POLV.VI :
    * AUSTRIAN FINANCIAL REPORTING ENFORCEMENT PANEL IDENTIFIED
ACCOUNTING ERROR
    * IMPAIRMENT TEST PERFORMED FOR CARSTYLING CGU IS FOUNDED ON
CASH
FLOW PROJECTIONS THAT ARE NOT BASED ON REASONABLE AND
SUPPORTABLE ASSUMPTIONS IN ACCORDANCE WITH IAS 36.33(A), WHICH
CONSTITUTES MANAGEMENT'S BEST ESTIMATE OF ECONOMIC ENVIRONMENT
    * FURTHERMORE, MANAGEMENT HAS NOT ENSURED THAT IN ACCORDANCE
WITH
IAS 36.34 ASSUMPTIONS ON WHICH CASH FLOW PROJECTIONS ARE BASED
ARE CONSISTENT WITH ACTUAL PAST PERFORMANCE
    * IN ADDITION, ASSUMPTION OF A CONTINUOUS INCREASE IN
EARNINGS (AS
MADE IN MEDIUM-TERM PLANNING FOR TERMINAL VALUE ASSUMPTIONS)
DOES NOT CONTRADICT REQUIREMENTS OF IAS 36.37, ACCORDING TO
WHICH COMPETITION IS EXPECTED TO LEAD TO PRESSURE ON EARNINGS
MARGINS
    * THEREFORE, RECOVERABILITY OF ALMOST ENTIRE GOODWILL FOR
CARSTYLING CGU TO AMOUNT OF EUR 12,643K COULD NOT BE
DEMONSTRATED AS AT 31 DECEMBER 2019. AS A RESULT, EARNINGS AND
EQUITY AS AT 31 DECEMBER 2019, AND EQUITY AS AT 30 JUNE 2020,
HAVE BEEN OVERSTATED

Source text for Eikon:  ID:nPexxbJgLa 
Further company coverage:  POLV.VI 

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