Notes on the balance sheet falsification: Wirecard stock loses more than half of its value

The suspected accounting fraud in the company Wirecard has confirmed: accountants of EY would have found references to incorrect information for the purpose of

Notes on the balance sheet falsification: Wirecard stock loses more than half of its value

The suspected accounting fraud in the company Wirecard has confirmed: accountants of EY would have found references to incorrect information for the purpose of Deception, informed of the Dax-listed company on Thursday. Specifically, evidence of Bank deposits were missing out on escrow accounts in the amount of 1.9 billion euros. The sum is equivalent to about a quarter of the group's total assets.

the presentation of The annual financial statements for the past year in 2019, suspended, Wirecard, for the fourth Time. On Friday banks could, therefore, loans in the billions due. The share price fell temporarily by up to almost 70 percent, temporarily, the title have been suspended from trading. In the early afternoon, the share price was still at more than 50 percent to just under 54 euros.

state's attorney determined

"Previous issued confirmations from the banks have not been recognised by the auditors," said the Wirecard CEO Markus Braun: "All Parties are committed to the fastest possible education. If scammers exist procedures to the detriment of Wirecard AG, is currently unclear. Wirecard AG will file a report against unknown.“

subsidiaries of Wirecard would be deposited on trust accounts security deposits from a total of 1.9 billion euros, to guarantee for the risk management for participating merchants. It was two Asian banks.

WIRECARD -- -- (--) Xetra London SE Int. Level 1TradegateLang & Schwarz, Stuttgart, Frankfurt, Switzerland OTCWienSchweiz 1T 1W 3M 1J 3J 5J For detail view

not fixed A new date for the submission of the annual financial statements for 2019. Thus, Wirecard might get problems with loans: as Long as the audited annual and consolidated financial statements is not until the 19th century. June would be presented, could loans of Wirecard AG in the amount of approximately two billion Euro will be cancelled, said the group.

Dax-descent and sanctions

Because of the still missing financial report, the German stock exchange to initiate sanction proceedings against the company, as a spokesman for the exchange operator announced. threaten Responsible of the sanctions Committee of the German stock exchange was. In the face of a possible penalty of up to one Million euros, the symbolism would be probably more serious than the financial damage.

Updated Date: 18 June 2020, 08:19

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