Posted On: 09/29/2013 10:16:53 AM
Post# of 9903
I posted the same question direct to Winston Cooper on scam hub. Here is his public reply to me also recorded on the SRGE board:
Jimmy40, thank you for your posts. Obviously, BGL did not want a reserve for the impairment for Cinco Minas "asset" at 11/30/12. Looking at this from the outside, but with a lot of experience in auditing , I believe the Auditors and Company reached an agreement to not record the reserve at 11/30/12, but, instead issue the following footnote:
Note 9: (last sentence)-"Should the ruling be in favour of the defendant, the Company would be required to recognize an impairment charge on the property for $9,924,305". MSJ is the defendant.
With this disclosure, the Auditors have done two things: 1. They have covered their rear ends (in case there is an impairment) and 2. They have kept their client BGL happy by not recording a reserve for an impairment on the books.
If I had been auditing BGL, I would have insisted that they recognize an impaired "asset" at 11/30/12. But, sadly, some Auditors just want to keep their clients happy.
Jimmy40, thank you for your posts. Obviously, BGL did not want a reserve for the impairment for Cinco Minas "asset" at 11/30/12. Looking at this from the outside, but with a lot of experience in auditing , I believe the Auditors and Company reached an agreement to not record the reserve at 11/30/12, but, instead issue the following footnote:
Note 9: (last sentence)-"Should the ruling be in favour of the defendant, the Company would be required to recognize an impairment charge on the property for $9,924,305". MSJ is the defendant.
With this disclosure, the Auditors have done two things: 1. They have covered their rear ends (in case there is an impairment) and 2. They have kept their client BGL happy by not recording a reserve for an impairment on the books.
If I had been auditing BGL, I would have insisted that they recognize an impaired "asset" at 11/30/12. But, sadly, some Auditors just want to keep their clients happy.
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