OTCPK:TOUBF - Post by User
Comment by
whoa_rimcheeseon Jun 19, 2011 1:16pm
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Post# 18735161
RE: Trees bow Current Asset????
RE: Trees bow Current Asset????There is nothing wrong with the accounting, and no alterior motive for the current asset accounting. As jameslast correctly pointed out it is to do with the IFRS.
Purchased plantations are considered more like inventory, and planted plantations are considered longer term biological assets. This is also important, as because of the similarity to inventory, the rule for counting is lower of cost or net realizable value. Thus, the purchased plantations are recorded at cost (i.e. what was payed for them, and allowable costs incurred on the purchased plantations). Hence, this is where G&M was very deceiving, implying that the valuations could not be verified that are recorded by TRE. Well, TRE IS NOT showing fair value for purchased plantations....
For planted plantations, IFRS is clear that biological assets should be "marked to market" - thus, planted plantations will be recorded at fair value on the financial statements.
To be investing your own money, not only do you need knowledge of industry, perhaps technicals, a general understanding of the regulatory environement, etc. A strong accounting knowledge should be requisite. If one were to sell cause of the worry or belief that purchased plantations were shown as current assets - that would be too sad.
Hopefully TRE comes out with something strong prior to the casino opening tomorrow, otherwise, the shorts will molest this thing.