Benoholdings Reports 13.1 Billion KRW Derivative Financial Liability Valuation Loss

[Asia Economy Reporter Oh Ju-yeon] Beno Holdings announced on the 17th that it incurred an evaluation loss of 13.1 billion KRW on derivative financial liabilities (convertible bonds). This corresponds to 22.18% of its equity capital.

The company stated, "Due to the rise in stock prices, differences have arisen between the conversion prices of the 5th and 6th series convertible bonds issued by our company and those issued by other companies that we are acquiring, and the stock prices. This has resulted in an accounting recognition of derivative financial instrument evaluation losses." It added, "According to the Korean International Financial Reporting Standards (K-IFRS), when classified as financial liabilities, they must be measured at fair value, so the loss was reflected. The recorded amount is a loss without cash outflow."