The restatement showed different facts. (Image: Reuters)

Restatement, GI loses US$1.75 million in 2018

Alfonsus Adi Putra
Business & Industry
Foods & Service
Jul 26, 2019
4884
On Friday, GI presented the restatement of its financial report for the last year to the Indonesia Stock Exchange (IDX). In the restatement, GI had to reveal a totally different fact that it boasted in the discrepant financial report. Instead of US$5 million net profit, GI had to write a huge US$175 million loss.

GI also reported net miscellaneous income adjustment from US$278.8 million to US$38.9 million. On the other hand, GI did not include any expense adjustment in its restatement, except the tax expense from US$14 million to US$46 million.

The restatement of income also affected GI’s equity total. Previously, GI’s equity total was reported at US$910.2 million. Due to the restatement, it was adjusted by US$180 million to US$730.1 million.

The adjustment was also reported in the recording of the asset total and liabilities. For the asset total, from US$4.37 billion to US$4.16 billion. While for the liability, from US$3.46 billion to US$3.43 billion.

The airline also restated several indicators of financial report for the first quarter of 2019. Due to the change in profit, GI had to adjust the position of equity in the first quarter from US$971.1 million to US$791.1 million. Asset total and liabilities were also adjusted. Asset total was adjusted from US$4,53 billion to US$4,32 billion, and liabilities from US$3,56 billion to US$3,53 billion.

In the restatement, GI’s subsidiary, PT Citylink Indonesia, had written a letter to Mahata to terminate their contract as a recommendation by The Audit Board (BPK).

- THE CHRONOLOGY OF THE PROBLEM -

It was a requirement from the Financial Service Authority (OJK) for the airline to present a restatement of its 2018 financial report. Last month, OJK found several violations and discrepancies in the 2018 financial report of PT Garuda Indonesia Tbk (Persero) [GI].

Furthermore, the problem was detected because 2 commissioners of Garuda Indonesia, Chairal Tanjung & Doni Askaria, refused to sign the financial reports, a sign of their disagreement with the content.

The main disagreement was the listing of US$239,94 million receivables from PT Mahata Aero Teknologi as revenue, violating the Financial Accounting Standard (PSAK) No. 23. Since there was no payment received from Mahata until the end of 2018.

However, GI still reported the transaction as revenue, which caused GI’s financial performance to report net income. Previously, GI had to report a US$216,58 million loss.

Source: https://www.cnnindonesia.com/ekonomi/20190726100820-92-415667/perbaiki-laporan-keuangan-garuda-rugi-rp245-t-di-2018

Business , Aviation , Regulation , Financial , Restatement , Indonesia , Garuda-Indonesia , GI , OJK , Finance-Ministry