As a result, the earnings and equity of Polytec were overstated. This was the conclusion reached by the Austrian Audit Office for Accounting (OePR), as Polytec announced on Thursday afternoon.
The value of almost the entire goodwill for the CGU Carstyling in the amount of 12.6 million euros could not be proven as of December 31, 2019, the OePR criticizes, according to a statement from Polytec. The cash flow projections would not be based on reasonable and justifiable assumptions in accordance with accounting rules (IAS 36.33 (a)). The management did not ensure that the assumptions for the cash flow forecasts correspond to the actual results of the past. Furthermore, contrary to the assumptions, competitive pressure on profit margins is to be expected.
From Polytec’s point of view, it was a routine test of the OePR. The resulting adjustments in the assessment would be taken into account in the next report. “We take note of this and implement the changes,” said a spokesman.
Polytec, based in Hörsching, posted a consolidated profit of EUR 6.8 million for the first half of the year. The group turnover amounted to 291.7 million, the equity last amounted to almost 250 million euros. (apa)