>>those ships and cars are for real, and they make money off them...
Chosun Ilbo, 05/04/99:
Consolidated Books Reveal Greater Losses At Firms
The nation's listed firms would have had posted losses 20% greater than those actually reported for 1998 going by international accounting standards, which require firms to keep consolidated books. The Korea Stock Exchange (KSE) announced Tuesday the results of its analysis of the financial standing of 264 listed firms with fiscal year-ends of December 31, which showed that the firms incurred W28.54 trillion in consolidated losses. This figure is 20.76% greater than the W23.64 trillion in losses reported according to their regular financial statements, which are unconsolidated. The KSE said the discrepancy is due to the fact that unlike unconsolidated financial statement, consolidated ones take into account the net losses of subsidiary firms and exclude unrealized profits.
Consolidated statements would also have shown W81.98 trillion more in turnover, among the firms, an 18.3% increase which suggests that firms are as dependent as ever on internal dealings. Consolidated net profits at the five largest business groups showed a decline from profits posted in their regular books. Samsung, Daewoo and LG, for instance, all reported profits for 1998, but sank into the red going by consolidated figures. Kia Motors, however, saw it profits increase to W153.2 billion going by consolidated figures due to the inclusion of profits from its subsidiaries in Japan and Europe.
chosun.com |
