Norway’s Havila Shipping is being forced to restate earlier profit and equity figures following a probe into its financial accounting.
The Saevik family-controlled owner of offshore support vessels revealed in December that Norway’s financial watchdog Finanstilsynet had concluded an investigation that found errors in the way it accounted for impairment of ships.
Finanstilsynet ordered Havila to reassess these values for the first half of 2020, but the shipowner said it might appeal the decision within the five-week period specified by the authority.
However, in a new filing, the company said it would now comply with the order.
“Detailed, but preliminary assessments, confirm not insignificant effect on results and equity in historical periods, but limited impact on the group’s equity on the 2021 annual accounts,” Havila said.
The exact impact will be calculated and booked for 2021.
The authority’s examination of the Oslo-listed offshore shipping company’s accounts began in March 2020.
Finanstilsynet found three unspecified errors and concluded that the company’s impairment testing of ships was not performed in accordance with IAS 36 accounting rules.
Lost control?
The authority also said it had examined whether the shipowner “lost control over certain of its subsidiaries” in 2019.
But it said there was no basis to conclude that the errors and deficiencies found in accounting practices had caused material errors in the the 2019 or 2020 results.
“Finanstilsynet has pointed out material deficiencies in the…group financial statement disclosures relating to revenue, operational leases and transactions with related parties, as well as certain disclosures in the statutory accounts of the parent company,” the watchdog said.
Havila logged impairments of NOK 86.9m ($9.8m) in the first quarter of 2020, and NOK 87.6m in the second quarter.
The shipowner said it had “continuously aligned itself with the conditions pointed out by Finanstilsynet and with which the company has agreed”.
