Hi DTD,
See my post to Matrix.
My view is that the E6.5b income overstatement is separate and distinct to the impairments. While both are negative events and destroy shareholder value, the former (overstatement of income) is an Income Statement matter that will eventually be corrected for prior years in the Statement of Changes in Equity.
Overstatements generally may or may not necessarily lead to impairments of Goodwill and Intangible assets on the Balance sheet (although they mostly do in fraud cases).
If I have this correct, and hopefully Matrix responds, my point is that most of the correction of the revenue has been adjusted, and almost all of the impairments have been effected.
Best Regards
Captainfrom82
Hi Captain,
Thank you very much.
My understanding looking at the restatements in Note 17 of the account 31 March 2018 I see the following:
Page 83 - 31 March 2018 accounts
17.7 Other
Included in other restatements:
• Inflated income which has resulted in both operating profit and assets being overstated;
• Incorrect application of group accounting principles in the light of new factors;
• Disposition of assets without appropriate security, leading to concern regarding recoverability of
these assets;
• Incorrect classification of assets and liabilities;
• A reduction in treasury shares and dilutive instruments becoming anti-dilutive due to an operating
loss attributable to ordinary shareholders during the period; and
• Reclassification of non-current liabilities to current as a result of the impact of other restatements on debt covenants
In pages 76-77 Income statement – Restated 31 March 2017
Profit/(loss) for the period - (941)
In pages 74-75 Balance Sheet – Restated 31 March 2017
Total Assets – (7229)
Liabilities = (335) got this from liabilities – equity
Therefore total impairments to note 17.7 Other is (8495)
So does this mean that enough impairments done?
Your comments appreciated.
Best Regards,
DTD
Edited by DayTraderDad, 26 March 2019 - 12:02 PM.
