Pacific Star Development's liabilities rise S$S11.5m after audit of financial statements

PROPERTY group Pacific Star Development's total liabilities have risen by S$11.5 million to S$146.2 million after an audit of its financial results for the 18-month period from Jan 1, 2017 to June 30, 2018, in relation to a purchase consideration for the completion of a reverse takeover exercise.

The firm said in a Singapore Exchange filing that the increase in liabilities was due mainly to a S$10.7 million jump in other payables. The increase was due to S$11.5 million relating to the purchase consideration payable to the vendor for the reverse takeover, which was previously classified as equity.

As the purchase consideration remains payable, it should have been recorded as a liability to the vendor, said Pacific Star Development.

The S$11.5 million was partially offset by the S$765,000 reclassification from other payables to trade payables.