DGAP-News: CAMERIT AG: Publication in accordance with § 109 (2) sentence 1 WpHG (German Securities Trading Act)

Publication in accordance with § 109 (2) sentence 1 WpHG (German Securities Trading Act)
The German Financial Reporting Enforcement Panel (FREP) has determined that the condensed financial statements as of the reporting date June 30, 2020 of Hesse Newman Capital AG (now CAMERIT AG), Hamburg, are incorrect:
 
1. In the condensed financial statements as of June 30, 2020 of Hesse Newman Capital AG, the result before income taxes is overstated by EUR 4.3 million because the revaluation reserve from the valuation of equity instruments held by an associate disposed of in 2020 was recognized in profit or loss (recycled). Due to the option exercised in previous years to present the change in fair value of these equity instruments outside profit or loss (FVOCI), the reversal of the revaluation reserve through profit or loss at the time of disposal contravenes IAS 28.22 (c) in conjunction with IFRS 9.5.7.5 and IFRS 9.B.5.7.1.
2. In the condensed financial statements as of June 30, 2020, earnings before income taxes are understated by EUR 500 thousand, as liabilities from debtor warrant obligations entered into were not recognized at their fair value at the date of addition, but at zero. The liabilities extinguished in return due to debt waivers by the lender were derecognized against equity with no effect on profit or loss, although the new debtor warrant obligations entered into represented equivalent consideration to the debt waivers. This violates IFRS 9.3.3.2f. in conjunction with IFRS 9.5.1.1.