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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Financial Supervisory Service is conducting a supervision process on Doosan Enerbility over allegations of accounting standards violations.
According to the financial sector on the 9th, the FSS is monitoring the Doosan Enerbility, judging that it violated accounting standards in connection with the construction of a thermal power plant won in India in late 2016.
The FSS believes that it did not deal with losses caused by rising costs in a timely manner after winning orders. The Financial Supervisory Service has put it on the agenda of the supervision committee and is conducting disciplinary deliberation. The Board of Supervisors has conducted two deliberation procedures since last month and plans to finalize the process next month.
The Doosan Enerbility, however, says the FSS' point of view is groundless. "The accounting is a matter that received appropriate opinions from trusted external auditors," Doosan Energybility told Yonhap News Agency. "Although we faithfully explained the issues pointed out, we failed to narrow the difference in interpretation with the Financial Supervisory Service on the specificity of the accounting handling of the order project and the negotiation process with the client."
"There was no reason to intentionally delay the recognition of gains and losses during the period," he said. "We completed the accounting in accordance with accounting principles at the time when the gains and losses were confirmed as a result of consultation with the client." The company said, "We cannot agree with the Financial Supervisory Service's criticism," and stressed, "We will actively explain it at the ongoing supervision committee."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
