At an extraordinary general meeting on Monday, the shareholders of INVL Baltic Farmland, a company that invests in agricultural land, approved higher expenses for audit services for 2022. By decision of the shareholders, the audit of the company’s financial reports for next year will also be performed by PricewaterhouseCoopers.
PricewaterhouseCoopers is auditing INVL Baltic Farmland’s 2022 financial reports. Costs of the audit of the company are rising following an increase in the amount of work involved due to requirements that listed companies prepare and publish audited annual reports in the European Single Electronic Format (ESEF). According to the shareholders’ decision, additional compensation of no more than EUR 6,000 (excluding VAT) may be paid to PricewaterhouseCoopers for the services.
For PricewaterhouseCoopers, 2023 will be the last year for which it will audit the farmland investment company’s financial statements, since under current regulations the same audit firm cannot audit a company’s activities for more than 10 years. The fee to be paid for the audit services, in addition to ESEF costs, is EUR 12,200, which would be indexed to the average annual inflation rate for April of the current year.
INVL Baltic Farmland plans revenue of EUR 718,000 this year and a consolidated net profit of EUR 646,000. The operating forecasts are based on the rental agreements that are in place and assume that during this year the value of the company’s land holdings will not change, there will be no further purchases or sales of land, and there will be no changes in provisions for receivables or impact of tenant debts on the size of the administration fee.
INVL Baltic Farmland is listed on the Nasdaq Vilnius stock exchange. Its subsidiaries own approximately 3,000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.