Count / Mac / Bandage - can one of you send a copy to me also? email address is briantinnion @ thefreekick.com (without the spaces).
I was confused by Brendanās analysis also. I presume he is referring to the ratio of current assets to current liabilities which is worrying in itself. Iād be far more worrried by the ā¬3m in what I presume is long term debt. On a rough calculation based on interest rates of 4% the monthly repayments on that over 25 years would be ā¬15,835 per month. Where are they going to find that kind of cash? Iāll hold off on future speculation until I see the document itself though.
the major problem i had with the account was that they pitted the (hugely inflated) valuation of our assets against our debts, so as to make it seem that we were in the black.
Thatās why I asked the IFRS versus Irish GAAP question, count.
Iām open to correction from the more match fit accountants but I think International Financial Reporting Standards require you to reduce the carrying value of fixed assets in the accounts if you believe their value has been impaired. In effect, you should consider whether the asset values need to be reduced to reflect current market values on an annual basis when preparing financial statements.
I think (again open to correction) that traditional Generally Accepted Accounting Principles allow you to value assets at their historic cost.
Iām not sure if IFRS applies to something like a sub-unit of the GAA (Appendage? BT?) but I donāt think there should be a scenario where fixed asset values were increased when the market was rising but have been left at that level even though land and property values have plummeted.
Itās just for this weekend. Dempsey took the development squad through their paces originally so I think that Dunne is taking a scouting role over this one. Iām open to correction on this though.
@Bandage - Irish GAAP is generally consistent with IFRS these days and if I was involved in preparing accounts for a company in a similar situation then Iād be expecting to record a large write down on any property assets.
That said, I have zero experience of working with regular companies or smaller āreal economyā companies so I have no idea what accounting standards they may be applying. Iām aware there are some other standards out there that they may be using such as FRS for SMEs but Iād be surprised if they allowed you to avoid recording a write down on property that was clearly impaired.
I think Appendage may have better insight in this area than any of us and I await his input.
Iām quite excited about seeing the accounts. My initial questions are:
Were the accounts audited by an accountant or merely prepared by an accountant?
I donāt think Appendage reads this thread, BT. Could you reach out to him privately to ask those pertinent accounting questions? What a treat this thread has been today - a lovely mix of GAA and accounting.
