Rev Asia reprimanded for big accounting variance

by **Cals** Thu 18 Dec 2014, 22:23

Rev Asia reprimanded for big accounting variance

KUALA LUMPUR (Dec 18): Bursa Malaysia has publicly reprimanded ACE Market-listed Rev Asia Bhd, formerlyCatcha Media Bhd, for the significant accounting variance between its audited and unaudited financial result.
In a statement today, the regulator said Rev Asia failed to ensure the accuracy of its quarterly reports announced to the market, breaching Rule 9.16(1)(a) of the ACE Market listing requirements.
The quarterly reports were for financial period ended March 31, 2013 (1QFY13); June 30, 2013 (2QFY13); Sept 30, 2013 (3QFY13); and Dec 31, 2013 (4QFY13); which were announced on May 30, 2013; Aug 30, 2013; Nov 28, 2013; and Feb 28, 2014 respectively.
The untallied numbers between its audited and unaudited account, was due to Rev Asia’s management failure in taking into account the gain on dilution of interest, which arose from the issuance of new shares by its Australia-based associate iCar Asia Ltd.
Rev Asia initially owned 37.66% in iCar in September 2012, but the stake was reduced to 27.2% in June this year.
As iCar had been loss-making in the past two years, dilution of its stake meand bearing lesser loss from it in Rev Asia’s account.
However, Rev Asia did not manage to acknowledge these lighter burden from iCar in its account, prior to external auditing, which resulted in all four financial quarterly reports bearing losses.
Subsequent to auditing, three out of the four financial quarters in 2013, reported net profit instead of losses; variances ranged from 22.8% up to 438.6% in these financial periods.
Bursa warned Rev Asia to ensure all its directors and relevant personnel attend training programme, in relation to compliance with the ACE Market listing requirements, particularly pertaining to financial statements.
“While Bursa has not found any of Rev Asia’s directors to have caused or permitted the breach by the company, Bursa wishes to highlight that it is the duty of the directors to maintain appropriate standards of responsibility and accountability, in ensuring compliance of the ACE Market listing requirements,” it added.
Rev Asia shares rose 4 sen or 5.22% to close at 70 sen today, valuing the group at RM94.92 million.