Post by
taketherisk on Aug 16, 2016 10:23am
Audit question mark
I am a CPA since 20 years, I assist at the audit committe a many public company. I do a small list of the question for PSG.
1) Bankrupt filling - for me doesn't work, the company have a good short term asset vs short term liabilites in Q-3.
2) Debt Ratio - PSG have maybe debt ratio to meet, maybe the convenant are not meet at the year end. Also, the audit committe maybe look like if some element can reduce the interest rate, the convention look like than the % of interest are based on certain criteria, maybe some of them can be put outside of the calculation.
3) wrtie-off - impairment of goodwill and or trademark is under review.
4) onerous contract - the new shop model doesn't work anymore and PSG have to record a provion in the financial statement
5) going concern, the cash flow look like tight
based on my experience, I believe in the element 2, the point is the more complexe than all, you are a lot of discussion and bank take some time. This point look like not bankruptcy but renegociation of debt.
Comment by
pocotrader on Aug 17, 2016 7:26pm
the fear here is that something is really wrong and the company gets halted until they fix it