This was due, among others, to an adjustment to deferred tax assets, which has adversely impacted the deferred taxation line in the income statement by RM178.9 million.
KUALA LUMPUR (July 30): AirAsia X Bhd (AAX) recorded a wider audited net loss of RM650.32 million for the financial year ended Dec 31, 2019, compared with the previously announced unaudited net loss of RM489.48 million for the year, resulting in a 32.9% or RM160.84 million deviation.
This was due, among others, to an adjustment to deferred tax assets, which has adversely impacted the deferred taxation line in the income statement by RM178.9 million, AAX said in a stock exchange filing.
The deferred tax assets on the balance sheet, AAX said, was dependent upon the ability of the company to generate future taxable profits based on past performance and a reasonable growth rate.
“However, subsequently, there was a material change in the future prospects of AAX due to the COVID-19 pandemic and the board has taken a prudent decision to derecognise the deferred tax asset on the balance sheet in the audited financial statements, which was not anticipated when the unaudited results were announced on Feb 27, 2020,” the airline explained.
Its audited statements also restated the deviation was due to the accruals adjustments made for maintenance and overhaul as well as for staff costs, which has a net profit after tax impact of RM11.7 million.
AAX said the deviation in net loss was also due to the audit adjustment made to invoicing for aircraft sub-leased to PT Indonesia AirAsia Extra (IAAX) by AAX, which has a net loss after tax impact of RM6.4 million.
Lastly, AAX said the deviation was also due to the adjustments made related to the Malaysian Financial Reporting Standard 16 (MFRS 16) in related to the treatment of aircraft sub-leased to Thai Air Asia X by AAX.
This adjustment impacts the revenue, other income, depreciation, finance income, finance costs and foreign exchange gains and losses lines in the income statement, and has a net profit after tax impact of RM12.8 million, said AAX.
AAX’s share price closed unchanged at seven sen today, giving it a market capitalisation of RM290.37 million. Some 12.85 million shares were transacted.