LSC News

AB Snaigė fined LTL 10,000 for failure to carry out the obligations of the LSC

On 23 December 2008, the LSC issued a warning to the Company for the reason that the consolidated financial statements of the Company for 2007 did not fully meet the requirements of IAS 1 „Presentation of Financial Statements“, IAS 16 “Property, Plant and Equipment“, IAS 19 “Employee Benefits“ and IAS 36 “Impairment of Assets“. The Company was then obligated in preparing the set of consolidated financial statements for 2008 to retrospectively correct the financial statements for 2007 bringing them in line with the requirements of the International Financial Standards. On 29 April 2009, AB Snaigė furnished to the LSC the set of consolidated financial statements wherein the irregularities were retrospectively corrected in accordance with the requirements of IAS 1, IAS 16 and IAS 19; however the set of consolidated financial statements (as the set of consolidated financial statements for 2007) further fail to met the provisions of IAS 36 “Impairment of Assets“, i.e., AB Snaigė had failed to retrospectively account for the impairment of goodwill for LTL 11,929 m.

When imposing the fine upon AB Snaigė, the LSC considered the acknowledgement by AB Snaigė of the infringement and the Company‘s undertaking to correct the irregularities in the semi-annual financial statements for 2009.