Bangkok: BCPG Public Company Limited (BCPG) has released a statement clarifying its accounting practices concerning its investment in AsiaLink Terminal Company Limited (ALT). This statement comes amidst circulating reports in various media that the company claims contain inaccuracies about the project.
According to Thai News Agency, BCPG emphasized the potential of the ALT project and reiterated its compliance with established accounting standards. The company's investment in an oil storage facility and port project in Phetchaburi province is expected to generate approximately 900 million baht annually. This venture aligns with BCPG's long-term business strategy, aiming to secure a steady revenue stream and allow for potential expansion into energy and related sectors.
The company further elaborated on the valuation process for its investment, which includes assets, rights, and long-term contracts capable of generating ongoing revenue. The valuation is based on the potential to generate future cash flows, adhering to accounting practices such as the Purchase Price Allocation (PPA) conducted after the acquisition in May 2023.
BCPG clarified that the PPA process, an accounting method for classifying and allocating the value of acquired assets for consolidated financial statements, does not assess the investment's appropriateness or purchase price. An independent consultant's evaluation identified necessary adjustments to asset classification and fair value, in line with accounting standards, which did not affect the investment value or cash flow generation capacity.
During the second quarter of 2023, BCPG was preparing the allocation information for the purchase price, complying with the 12-month timeframe stipulated by accounting standards. The company disclosed this information as required, and auditors observed the incomplete allocation without indicating any irregularity in business operations.
By the Q2/2024 financial statements, BCPG completed the purchase price allocation, which showed no significant changes from previous disclosures and underwent full auditing. The company reaffirmed its commitment to good governance, transparency, accountability, and comprehensive risk management to support stable long-term growth and expand its energy infrastructure investments.