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SGX RegCo to review No Signboard report for possible listing breaches
THE Singapore Exchange Regulation (SGX RegCo) will be reviewing an independent report on No Signboard Holdings’ accounting principles for possible breaches of listing rules by the Catalist-listed company.
In a filing on Wednesday, SGX RegCo referred to the finding of independent reviewer Nexia TS that No Signboard had not complied with Financial Reporting Standards (FRS). In particular, No Signboard should have continued using merger accounting principles to prepare its financial statements for Q1 FY2018 ended December 2017, Q2 FY2018 and Q3 FY2018.
Nexia further noted that if the company had decided to adopt a different accounting principle, it should have applied the change in accounting principle retrospectively to comply with the FRS. No Signboard had instead adopted a different accounting principle - actual group accounting principles - to prepare its financial statements for the relevant quarters without applying the same to its previous corresponding financial quarters.
The financial statements prepared for the relevant quarters were therefore not in compliance with the FRS, SGX RegCo noted. This also resulted in non-comparability of the financial statements and “double-counting” in two consecutive financial periods due to a restructuring exercise in conjunction with its IPO.
“SGX RegCo expects listed issuers to exercise caution and give due consideration before changing accounting principles for preparation of their financial statements. The reasons for such a change should be made clear and succinct,” SGX RegCo said in the announcement.
Shares of No Signboard closed flat at S$0.024 on Wednesday.