6/2019 - Information on the decision of the Management Board concerning revaluation write-offs
The Management Board of Trakcja PRKiI S.A. (the „Company”) hereby informs that on 23 April 2019 due to the impairment tests:
- Impairment test of investments in subsidiary AB Kauno Tiltai,
- Impairment test of goodwill assigned to the cash generating unit, which consists of subsidiaries of AB Kauno Tiltai Group
has decided to recognize write-off of the value of investments in subsidiaries in Trakcja PRKiI’s balance sheet in the amount of PLN 10.746 thousand and the value of goodwill in Trakcja Group’s consolidated balance sheet in the amount of PLN 24.243 thousand.
Value of investments in subsidiaries presented in Company’s balance sheet as at 30 September 2018 amounted to PLN 436.241 thousand. In Management Board’s opinion reasons appeared that may impact on the value of investments in subsidiaries assigned to mentioned cash generating unit therefore the Company’s Management Board performed impairment test of investments as at 31 December 2018.
Goodwill presented in Trakcja Group’s consolidated balance sheet as at 30 September 2018 amounted to PLN 331.911 thousand. In Management Board’s opinion reasons appeared that may impact on goodwill assigned to mentioned cash generating unit therefore the Company’s Management Board performed impairment test of goodwill as at 31 December 2018.
The above events, i.e. recognition of impairment:
- of investments cause a decrease of the standalone financial result for 2018 and decrease of the value of non-current assets presented in Company’s balance sheet as at 31 December 2018 by PLN 10.746 thousand
- of goodwill cause a decrease of the consolidated financial result for 2018 and decrease of the value of non-current assets presented in Trakcja Group’s consolidated balance sheet as at 31 December 2018 by PLN 24.243 thousand.
Recognition of impairments is non-cash and does not affect liquidity situation of Company and Trakcja Group.
Data presented above is of estimated character and its final value depend on result of annual audit and be presented along with financial results of Trakcja PRKiI and Trakcja Group accordingly in Company’s financial statement and in Trakcja Group’s consolidated financial statement for 2018.
Legal basis:
Art. 17 MAR
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