Comvita has announced that it has identified accounting irregularities in its China subsidiary, which have resulted in the misreporting of sales and accounts receivables for the financial years 2023 and 2024.
The company said it has been conducting a comprehensive review of the business, including its core processes, structure, and organisation design.
As part of this review, Comvita appointed an independent chartered accounting firm to assist with the investigation, which is currently ongoing and being overseen by the board and senior management.
The preliminary report from the independent firm substantiated the irregularities, which are estimated to have caused an overstatement of post-tax earnings of about $1 million in both FY23 and FY24.
Comvita said it is now working with its auditors to determine the appropriate accounting treatment.
The company will provide further updates on the review process in due course.
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