Commodities trader Noble rejects fresh accounting allegations
Research firm claims the trader overstated value of commodities it held by at least US$3.8 billion
Asian commodities trader Noble Group yesterday rejected fresh allegations of aggressive accounting from an obscure research firm, which triggered a trading halt ahead of the release of its annual results.
The Singapore-listed company halted trading in its stock, valued at US$5.3 billion, in the morning to allow time for consultations with its auditors at Ernst & Young, following the latest report from Iceberg Research questioning its accounting practices.
Noble subsequently said the auditors had completed a review of their procedures and would sign off on the accounts, which were due for release later yesterday. It said its shares would resume trading today.
The stock closed on Wednesday at S$1.06 (HK$6.06).
Little-known Iceberg said Noble had overstated the value of commodities it held by at least US$3.8 billion, in its second attack on the Hong Kong-based trader this month.
"Impairing these fair values dramatically impacts Noble's performance indicators," the research firm said on its website on Wednesday.