RE:RE:someone understands this? (Gold X and balance sheet..)that explains why they reported in the news release end of q2 $73 mil cash for gcm and $14 mil cash for caldas. since gcm owns over 50% of caldas the q2 gcm financial statement reported consolidated cash of both companies of $87 mil.
caldas added $50 mil cash during q3 and wheaton will be giving caldas $110 mil cash. so gcm q3 consolidated financial statement could be reporting an ENORMOUS jump in cash!?! in addition to the large free cash from operations.
Heywood_Silvers wrote: OK, the accoutant to the rescue......
Gold X, as a 20% or higher owned investment, must per GAAP, must be recorded on the Balance Sheet annually. GCM must take their pro-rata share of earnings or losses into account. Since Gold X, like most other juniors, only report losses each year, GCM will take their pro-rata share of the losses.
The accounting is such for losses: Db Earnings in Investee and Cr Investment in Subsidiary. If GCM were ever to achieve 50% or more ownership in Gold X they would have to fully consoidate Gold X into their financials and Gold X would be shown as a minority interest in the equity portion of the Balance Sheet.