Panevežys, 2018-03-29 15:00 CEST (GLOBE NEWSWIRE) -- On 28 March 2018 AB Linas Agro Group received decision No 241-50 of the Supervision Service of the Bank of Lithuania (hereinafter in the text - the decision), by which it is bound to publish such a notification: "3. To require AB Linas Agro Group to immediately publish the notification about the material event, i.e. about this decision of the director of the Supervision Service of the Bank of Lithuania indicating: 3.1. That by the decision of the director of the Supervision Service of the Bank of Lithuania AB Linas Agro Group was warned about the infringement of Article 22 of the Law on Securities of the Republic of Lithuania; 3.2. That the consolidated annual financial statements of AB Linas Agro Group for financial year 2016-2017 ending on 30 June 2017 do not comply with the requirements of IAS 16 Property, Plant and Equipment; 3.3. The impact of the infringements on financial statements: the application of useful life of the non-current tangible assets shorter than required by IAS 16 has reduced the value of the tangible non-current assets and increased costs; therefore, the annual consolidated financial statements of AB Linas Agro Group failed to reflect a true and fair view: if longer periods of depreciation of the tangible non-current assets were applied, the tangible non-current assets and non-allocated result of 30 June 2017 would increase." Based on the foregoing, the Company publishes this notification about the material event. Comments of Finance Director of AB "Linas Agro Group": Bank of Lithuania survey has took place for three months and included the Group's accounting policies and principles of consolidation of financial statements, valuation of biological assets, accounting of inventories, accounts receivable, loans granted to subsidiaries and accounting of property, plant and equipment. The Bank of Lithuania expressed the opinion that the Group did not review the useful lives and residual values of non-current tangible assets when compiling consolidated annual financial statements for the financial year 2016/2017. In principle, this relates to long-term tangible assets of agricultural companies that have been purchased long time ago. During the investigation, the deliberate activities of AB Linas Agro Group were not identified, for which the financial information does not meet the requirements of the IAS. Taking into account the decision of the Bank of Lithuania, we initiate the review of the useful lives and residual values of the Group's property, plant and equipment from July 1st 2018 onwards. - Tomas Tumenas, Financial Director of AB Linas Agro Group, commented on the conclusions of the study of the Bank of Lithuania. In accordance with the criteria of transparency and availability of information, the Company, if needed, will in future inform about its further actions regarding the decision of the Supervision Service of the Bank of Lithuania. Investor relations specialist Greta Vaitkeviciene +370 45 507 346 g.vaitkeviciene@linasagro.lt