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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Securities and Futures Commission of the Financial Services Commission determined that Doosan Enerbility's accounting manipulation was not 'intentional' but 'gross negligence.'
On the 7th, the Securities and Futures Commission held its third meeting and decided on the level of sanctions against Doosan Enerbility, which prepared and disclosed financial statements in violation of accounting standards, and Samjung Accounting Firm, which was in charge of external audits. The final level of disciplinary action will be finalized at a regular meeting to be held after the Securities and Futures Commission.
Earlier, the Financial Supervisory Service judged that Doosan Enerbility did not account for the losses of Doosan Power Systems India (DPSI), an Indian subsidiary, in time. The FSS said the company did not recognize losses of around KRW 300 billion between 2017 and 2019 even though it was aware of rising costs after winning construction orders. Doosan Enerbility argued that there was a conflict between the ordering company and the cost increase sharing, which only delayed accounting reflection but did not mean it.
The Securities and Futures Commission judged that Doosan Enerbility violated accounting standards. In the 2017-2019 period, sales were overestimated and construction loss provisions were overestimated. Under the Capital Markets Act, the two CEOs will be fined 20 million won and 12 million won, respectively. However, the amount of fines against the company was not disclosed. Because the amount is not fixed. The company's fines will be determined by the Securities & Futures Commission in the future.
According to the Securities and Futures Commission, Doosan Enerbility also underestimated impairment losses on subsidiary investment stocks. It also did not submit some of the data requested by the supervisory enforcement agency without justifiable reasons.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
