KUALA LUMPUR: The Jabatan Audit Negara (JAN) has issued a qualified opinion to Lembaga Tabung Angkatan Tentera's (LTAT) financial statements for the financial year ended Dec 31, 2017 (FY17).
The chief executive of the superannuation fund, Nik Amlizan Mohamed said on Thursday that JAN or the National Audit Department had issued the qualified opinion pertaining to Note 33 and 13 of LTAT's FY17 financial statements.
She said JAN’s qualified opinion, Note 33 involved LTAT’s revenue for FY17 and the proceeds from a sale pertaining to property development amounting to RM202.71mil, which should not have been taken into account in the Financial Statements of LTAT for FY17.
“This transaction does not comply with Financial Reporting Standards 118 relating to revenue, and does not comply with the materiality level against net profit, income and total asset and non-compliance to the clauses in the property sale and purchase agreement.
“Note 13 involves Available For Sale Securities amounting to RM1.602bil. Impairment for two Available For Sale Securities amounting to RM88.90mil was not reported in the Financial Statements of LTAT for FY17,” she said.
Nik Amlizan said according to JAN the fair value for the two shares as at end of FY17 amounted to RM18.46mil compared with the purchase cost of RM107.36mil.
Significant or prolonged decline in fair value below cost is consideration to determine impairment for these two shares.
“As such, impact from these findings as highlighted in JAN’s Qualified Opinion, has caused LTAT’s profit for the FY17 to be reduced from RM662.17mil to RM370.56mil.
“In addition, LTAT’s retained earnings would drop drastically to negative retained earnings of RM31.6mil from positive retained earnings of RM259.99mil previously,” she said.
The delay in FY18 accounts is due to the late submission of FY17 accounts. LTAT is also of the view that with the finalised audited accounts of FY17 being in negative territory for its retained earnings, this will have a profound impact on its results for FY18.
“We are in the midst of finalising our accounts for FY18 and we expect to announce our results by July 2019,” it said.