BOST challenges GHS 400m net loss statement by SIGA
Management of the Bulk Oil Storage and Transportation (BOST), has challenged a finding by the State Interest and Governance Authority (SIGA) that it made a net loss of GHS 400m in 2020.
In a statement issued by BOST, it described the GHS 400 net loss assertion by SIGA as “erroneous.”
According to BOST, net loss recorded for 2020 was GHS 291m and not GHS 400m as stated by SiGA, asserting that the recorded net loss for 2020 was due to a deferred tax obligation of GHS 292m.
The deferred tax obligation of GHS 292m, BOST further explains, was the result of its decision to revalue its assets in the year under review.
Adding that a GHS 15.6m reduction in the market value of its 20% stake in GOIL, contributed to the end-2020 net loss of GHS 291m.
“BOST as part of its drive towards operational excellence undertook a revaluation of its assets in the 2020 financial year. This had become necessary as most of the assets still in operation had been written down to near-zero levels whilst still useful in the operations of the company.
“As required by the International Financial Reporting Standards, IFRS, when assets are revalued, the increase in their values is taxed resulting in larger tax obligations. The revaluation which was a deliberate decision to enhance the reporting of the company led to a deferred tax obligation of GHC292,935,973 compared to the net loss of GHC291,017,758,” said BOST
BOST maintains that it did not record a loss in 2020 but rather achieved a profit before tax of GHS 9.8m.
However, the enormous deferred tax obligation of GHS 292m, GHS 15.6m decline in market value of its 20% stake in GOIL and forex difference on dollar denominated loans accounted for the GHS 291m net loss recorded in 2020.
The company further maintains that its cashflow position has been enhanced and that an objective analysis of its audited statements over the past five years shows higher profit performance.
Read detail of statement below:
Press Release April 2022 Final for Sharing by Fuaad Dodoo on Scribd
