|▲ Kim Yong-bum, chairman of the Securities and Futures Commission of Korea, presented the results of a review of Bio Bio accounting at the Seoul Government Complex in Jongno-gu, Seoul on July 14.|
|Ⓒ Financial Services Commission||
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The Financial Services Commission and Futures Contract Commission said on March 14 that Samsung Bio Logics (Samsung Bio) had deliberately misused accounting. This is the conclusion of the Supervisory Board that Samsung Biotech did not intentionally revise its financial statements even though it was aware that it must reflect the company's value.
As a result, the Supreme Court decided to recommend the CEO to Samsung Biotech, impose a fine of 8 billion won, and file a complaint with prosecutors for violating accounting standards. In addition, the Samjong Accounting Corporation, which has been responsible for auditing Samsung Bio, sentenced 170 million won to violate its negligence, and Anjin Accounting Corporation decided to limit the audit work for three years due to negligence.
This afternoon, Koo said that the Seoul Government Complex in Jongno-gu, Seoul, announced the results of a review of Samsung's Biotek accounting. According to the Supervisory Board, Samsung Bio has deliberately violated accounting standards by interpreting arbitrarily and applying accounting standards to secure the legitimacy of Samsung Biotech (Samsung Peace) control in 2015.
In the past, US Bioenergy has signed a call option contract to take about half of Samsung Peace's shares, but Samsung Bio has not announced it, and changed its accounting for loss of control of Samsung Peace in 2015. As a result, Samsung Bio listed its shares on the stock market, assuming Samsung Peace is valued at its market value (fair value) rather than the book value at the time of purchase.
"It was wrong to increase profits by 4.5 trillion won in 2015,
Kim Yong-bum, vice chairman of the Financial Supervisory Commission (FSC), told a news conference, "The company recognized Samsung Securities shares in 2015 as an equity method (a system that reflects the subsidiary & # 39; It was a mistake and had to be canceled." that Samsung Biotech must revise its books because it must be treated as an equity method (affiliated company) in its books from 2012 to 2014, acknowledging that Samsung Peace is jointly controlled by Biogen.
If Samsung Biotech corrects the book in accordance with the steps taken the same day, it was analyzed that Samsung Biotech was in a state of capital shortages in 2015. Sohn Young-chae, head of the Service Financial Supervisor, explained, "If Samsung Biotech cuts 4.5 trillion won in 2015, it will be in a state of capital erosion if it revises its financial statements. " He said, "However, maybe the list can be made in accordance with the new listing standards of 200 billion won in equity capital, because the shares were raised through a stock subscription at the time of listing."
On the same day, Koo added that Samsung Bio did not intentionally reflect call options that could reduce the value of its company in the 2012 ~ 2014 financial statements. "We knew in 2015 that the company should recognize call option obligations in 2012-2014, but we explained that it was not possible to evaluate the fair value (market price) of the call option," Kim explained. .
He added, "In line with this, we obtained opinions from external evaluation agencies, and based on this, it seems that past financial statements have not been intentionally modified." In other words, if the book reflects a part of Biogen that can take about half of the shares in Samsung, the value of Samsung Bio will decrease, so it cannot be evaluated by an accounting company.
"Samsung Bio stock trading is postponed"
In addition, Chairman Kim said, "The company recognizes Samsung E & P investment shares as acquisition costs (book value), and is concerned that if call option debt is recognized as fair value (market value)" It turns out we are actively looking for some unusual alternatives , including changes in control, to resolve this, "he said.
In addition, Park Yong-jin, a member of the Democratic Party, said in a Samsung document that the Samsung Bio Future Strategy Office was discussing how to handle the option. In the document, & # 39; Samsung C & T integrated evaluates the bio value of up to 6.9 trillion won to guarantee the fair share price of Cheil Industries during the merger. & # 39;
In July 2015, Cheil Industries and Samsung C & T joined each other with a ratio of 0.35. It was said that three Samsung C & T shares were valued at one part of Cheil Industries. In the case of Samsung, the value of Cheil Industries & # 39; must be increased to support Lee Jae-yong, vice chairman of Samsung Electronics, who is a major shareholder of Cheil Industries, and this has increased the value of its subsidiary Samsung Bio.
However, if the call option is reflected in the book in this situation, it is included in the document that Samsung Biotech will experience capital erosion due to debt. As a result, Samsung Bio reported an accounting proposal to avoid capital inflows to the Future Strategy Office and actually implemented a plan to turn Samsung Peace into a subsidiary.
Kim said, "The trading of Samsung Biotech shares will be terminated due to prosecution of the prosecutor's office on the same day." According to this measure, Samsung Bio will be subject to the actual screening of the Korean Exchange. "We cannot predict whether the list will be abolished," added, "KSE will conduct a review based on comprehensive considerations about the company's sustainability, growth potential, and investor protection."
Review of Samsung C & T accounting audits
On the other hand, the Supreme Court decided in the future whether to request the Financial Supervision Service for financial accounting oversight Samsung C & T. Kim said, "If Samsung Biotech revises its financial statements according to this measure, there will be changes in the financial statements of its parent company, Samsung C & T. " "We will analyze the details of this problem and check the need for Samsung C & He said.
Park Yong-jin and PSPD alleged that Samsung C & This is because Samsung C & T evaluates Samsung Bio's value to secure the fair value of Cheil Industries.