Tabung Haji failed to report RM227.81m impairment in 2017 — AG report

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KUALA LUMPUR (Dec 3): The 2017 Auditor-General (AG) report has highlighted that the pilgrim’s fund had failed to record an impairment totalling RM227.81 million from its investments in several subsidiaries and associates.

The report also pointed out that the setting of LTH’s asset impairment policy has been inconsistent as changes were made every year, especially in the year ended Dec 31, 2017 (FY17), whereby the policy was modified twice.

“Based on Paragraph 8, MFRS 136: Impairment of Assets, impairment provisions must be made if the carrying amount of the investment exceeds the recoverable amount.

“In the year ended Dec 31, 2017, LTH did not record an impairment totalling RM227.81 million against investment in three subsidiary companies and three associates, primarily the investment in the associate company, TH Heavy Engineering Bhd, which amounted to RM164.58 million,” it said.

The report said LTH’s financial statement for FY17 included a disclaimer of opinion by an external auditor.