FSS calls out Samsung BioLogics’ accounting fraud

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FSS calls out Samsung BioLogics’ accounting fraud

Korea’s financial watchdog said Tuesday that Samsung Group’s bio unit has violated accounting rules, and corrective measures and punishment may be taken depending on the final outcome.

Since March last year, the Financial Supervisory Service (FSS) has been carrying out a special audit of Samsung BioLogics, a biopharmaceutical unit of Samsung Group, over alleged accounting fraud.

The bio firm’s accounting flaw boils down to whether there were any irregularities in a dramatic business turnaround in 2015.

Samsung BioLogics, listed on the local stock market in November 2016, reported a net profit of a whopping 1.9 trillion won ($1.76 billion) in 2015, shifting from a loss in the previous four years.

In 2015, Samsung BioLogics adopted a mark-to-market accounting scheme from Samsung Bioepis, a joint venture with U.S.-based pharmaceutical company Biogen, which boosted its equity gains from the joint venture.

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