KUALA LUMPUR: The Armed Forces Fund Board’s (LTAT) profit for financial year (FY17) should be RM370.56 million and not RM662.17 million as reported due to unrecognised impairments and an incomplete land sale, its CEO Nik Amlizan Mohamed said today.
Its financial statement booked in RM202.71 million from land deals as profit despite the transactions not finalising in 2017, and it did not recognise impairment of RM88.9 million, she said.
“This transaction does not comply with Financial Reporting Standards 118 relating to revenue, and does not comply with the materiality level against the net profit, income and total asset and non-compliance to the clauses in the property sale and purchase agreement,” Nik Amlizan said during a joint press conference with Defence Minister Mohamad Sabu at Parliament lobby, here today.
Nik Amlizan said the fair value for the shares as at the end of FY17 amounts to RM18.46 million compared with the purchase cost of RM107.36 million.
“As such, impact of these findings as highlighted in National Audit Department’s Qualified Opinion, has caused LTAT’s profit for the FY17 to be reduced from RM662.17 million to RM370.56 million,“ she said.
LTAT is in the midst of finalising its accounts for FY18 and is expect to announce its results by July.
On April 8, Mohamad said at a ceramah in Seremban that the board’s 2018 financial report was found to be manipulated.
This followed news reports on March 30 quoting the minister as saying in Langkawi that LTAT dividends have not been declared because numerous accounts did not show the real position of the board under the previous administration.