TSXV:BTI.H - Post by User
Comment by
JDavenporton Nov 15, 2022 3:33pm
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Post# 35101066
RE:RE:RE:Grow up and move on please...
RE:RE:RE:Grow up and move on please...I was asked a question about my CVR comments, specifically about how the acquiring companies place a value on their CVR liability for reporting purposes.
I was not suggesting that the acquiring companies "cook the books" to convince their shareholders that their CVR liabilities are smaller than the agreed upon terms of their agreements with the selling companies.
Instead, it's a simple accounting recognition that the chances that the entire CVR values will ever be paid out are very low. It means that the acquiring companies should not have the CVRs' entire face values used on their balance sheets. That would be an unrealistically higher liability for the acquiring company, and no company want their liabilities to be higher than need be.
It boils down to this. Most acquiiring companies do not pay out the entire negotiated value of their CVRs, as KayakerBC has always maintained.
jd