Date
21 July 2017
Following criticism over some of its accounting practices, Noble Group has launched an independent review. Photo: Reuters
Following criticism over some of its accounting practices, Noble Group has launched an independent review. Photo: Reuters

Noble Group launches accounting review after criticism

Noble Group, Asia’s biggest commodities trader, said on Tuesday that it will launch an independent review into the way it values some of its assets.

In a filing to the Singapore exchange, the Hong Kong-based company said four non-executive directors and accounting consultant PricewaterhouseCoopers will conduct the review.

The review will focus on Noble’s “mark-to-market models, valuations, and governance framework,” it said.

The move came after several research firms, including US short seller Muddy Waters, criticized the commodities trader’s accounting practices, the Wall Street Journal noted.

The company has denied any wrongdoing.

Mark-to-market calculations, which are used to value assets, can include an element of subjectivity when estimating future commodity prices and production.

Critics say the practice led Noble to report stronger results than it should have in the past.

Noble’s share price has fallen more than 40 percent since a report criticizing its accounting was published in mid-February from an anonymous blog, the Journal noted.

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