The Securities and Exchange Commission (SEC) has granted Pace Development Corporation Plc (Pace) a second postponement for submitting a clarification of assumptions used in the fair value measurement of its investment projects.

The renewed deadline extension is set for Jan 31.

“Pace has failed to submit clarification and disclose the required information within the extended deadline because the new financial advisor whom Pace has appointed to appraise the fair value measurement of [its] investment is still gathering and analysing data and information from many sources to support the reasonableness of the assumptions used in the fair value measurement of the observation decks as planned,” said the SEC statement.

“If results of the review affect the fair valuation of the investment or any items in the financial statements that have been submitted to the SEC and disclosed publicly, Pace said that it will rectify and re-submit such financial statements to the SEC on the same day.”

Initially, the SEC instructed Pace to clarify the reasonableness of the assumptions used in the fair value measurement for Pace Project One Co Ltd and Pace Project Three Co Ltd.

The market regulator had earlier demanded the company publicly disclose such assumptions and the sensitivity analysis on significant factors through the Stock Exchange of Thailand’s electronic information system by Nov 30, 2017. The SEC later extended the deadline to Jan 15 at Pace’s request.

Pace’s auditor has not provided a conclusion on the company’s consolidated income statements in the second and third quarters of 2017. The auditor could not determine the fair value of MahaNakhon Tower or the assumptions on which its estimated future revenue from the related-observation decks were determined.

Pace used that estimated income to record an investment amount of 8.23 billion baht and recognised a gain of 8.9 billion from the loss of control of a subsidiary, said the SEC.

News Reporter

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