looking sick, page-11

Cloudnine,

I'm not too concerned whether you take me seriously or not... but I don't like people making comments on things that they do not completely understand, as it has the potential to mislead other people... if I see these things in the threads I follow I will try to correct them to ensure that people get appropriate information.

If you want to see more information about the $41m receivable you should look at the 2007 financial statements. (This info will be relevant for the 2008 financials.)

First thing you will notice is that it is a non-current asset as the term for payment for that component is greater than 12 months. You will notice a current receivable component for the amount due to be received in the <12month period.

Refer to Notes 8 and 11 of the 2007 accounts for the information on the receivables.

Refer to Notes 18 and 21 of the 2007 accounts for the information on the borrowings (finance leases) associated with the Plant and Equipment sale and leaseback.

Refer to Note 20 of the 2007 accounts for the information on the Deferred Income also associated with the Plant and Equipment sale and leaseback. This income gets recognised over the life of the lease of 15 years.

I should also point out that receivables have absolutely nothing to do with the market capitalisation of the company. Commonwealth Bank has receivables of $361B, yet it has a market cap of $54B. I do acknowledge that most companies do not have receivables in excess of Market Cap, but you need to understand the overall position of the financial statements, not just take a single number out of context.

Regards
Marvin