Informatics, a private education school, apparently booked revenue even though students had yet to attend a single course.
Apparently, quite a few people in top management team back in the few years pre-2004 were not aware that the company’s revenue recognition policy in 2003 may have contravened financial reporting standards or its own finance manual.
Ex Informatics senior vice-president Lawrence Wee said in court yesterday that he was not advised of possible contravention.
Ex Informatics chief executive (CEO) Ong Boon Kheng too said he wasn’t advised so.
The ex finance team consists of Group’s financial controller and the chief financial officer (CFO) Patrick Lau apparently didn’t know they could have violated any law too.
The company’s ex finance controller and former franchise department senior vice-president are expected to testify on this question too.
Another interesting point to note is that there is/was a “Finance Manual” written and the management then may have possibly contravened its content. I wonder who had the knowledge to write it then. Was he or she part that management team then? Who approved the manual as a guidance document for the company? Ex Board of directors?
We await the outcome of the trial.