The Securities and Exchange Commission (SEC) wants the Federation of Accounting Professions (FAP) to audit the financial statements of broadcaster iTV, following petitions from retail investors claiming the company has used unfair accounting practices.

SEC secretary-general Thirachai Phuvanatnaranubala yesterday said retail shareholders of iTV had petitioned the securities watchdog, saying that after an arbitration panel ruled to reduce iTV's concession fee, the company immediately booked the lower cost to its financial statements. They asked whether that practice breached accounting standards.

Although, in the SEC's initial opinion, the practice is legal, it will submit the case to the FAP this month for examination on the basis of accounting standards.

"In fact, the SEC believes iTV's financial statements are quite clear, both in figures relevant to risks as well as other information. Those who use the financial statements can evaluate it. The SEC believes iTV has already disclosed all needed information," Thirachai said. "However, as to whether the company has complied with accounting standards, we need to consult with the Federation of Accounting Professions."

Stock Exchange of Thailand (SET) president Patareeya Benjapholchai said the SET had sent a letter to iTV asking the broadcaster to clarify details of its executive and shareholder restructuring, including its new business plan. She said the SET expected iTV to submit all information after it held a shareholders' meeting next Tuesday. The deadline is 30 days after revocation of its concession licence.

If iTV fails to provide the information, the stock exchange will consider whether the company should be delisted. However, if iTV manages to submit a business plan, the SET will allow it to rehabilitate its business over two years.

The broadcaster had its licence revoked last Friday after iTV - formerly controlled by Shin Corp - failed to pay more than Bt100 billion in fees and fines to the government. It has been renamed TITV and continues to broadcast under the control of the Public Relations Department.

Siriporn Chanjindamanee

The Nation