Bonkers your opinion, page-2

re:Hunter your opinion Hi Ian this is a bit of stuff on ERG--opnion hasn't changed---with ERG's accounts (The R&D below is not my own work---it gives an excellent example of just one aspect of ERG's accounts---I believe the entity will prosper and have no doubts about that in my mind.
Just a load of nonsense they write in the paper--all it is is bringing cash back to book from contracts to meet your loan repayments--so ERG will do it.
With all that has been written by the papers over the last few months I would say it would be irresponsible to call it safe--but then as stated that is the journalists opinion not mine-LOL--I'll get some other stuff together and post when I can find it.
Cheers,--Steve.
4951370Accounting and Audit ReformAASB 1020 ilrobbinrosso 5/21/02 06:26
consolidating at higher levels 21/5/2002 blackstump 5/20/02 23:26
beginning to trend Sydney ITS resolution. ilrobbinrosso 5/20/02 21:27
beginning to trend.20/5/2002. ilrobbinrosso 5/19/02 22:17

RE: Quadruple quntuple bottoms are strong bullboard121 5/8/02 00:01
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http://www.voy.com/56615/
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Re: Research and development---info.


Author:
Steve Bonkers.
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Date Posted: 07:36:15 02/10/02 Sun
In reply to: Steve Bonkers. 's message, "Research and development---info." on 07:36:15 02/10/02 Sun

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R&D/increase/profits x 7.5 mill.
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Another person's analysis of R and D.
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Work not my own.
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I have been looking through the ATO website and came across this simplified way of calculating R&D. This is the way that R&D tax expenditure affects any companies’ bottom line. In inverted comma’s is from www.ato.gov.au.
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Research & Development Tax Concession.
“(a) an eligible company incurs research and development expenditure (other than contracted expenditure) during a year of income; and
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(b) the aggregate research and development amount in relation to the company in relation to the year of income is greater than $20,000;
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the amount of that expenditure multiplied by 1.25 is allowable as a deduction from the assessable income of the company of the year of income.”
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I am of the opinion that ERG may have been understating profits over the last few years due to the way R&D tax concession is calculated. In the recent 2001 Annual Review page 16, third last paragraph, Peter Fogarty states that, "In the 2002 year we expect to see R&D reduce significantly as the major phase of development of the Group's MASS technology is completed."
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If $40million is ERG’s annual R&D expenditure and it reduces to $10million in 2002, then ERG will increase profits by $7.5million. Not to mention the $30million they have not spent.
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Anyone have any further opinions or have a different reference point for calculating R&D tax concessions?Thanks By the way, I hold ERG and am not an accountant, so I could be wrong with the R&D tax concession calculation method.
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All the Stockdoctor sick list means is that the entity goes on a type of watch--they then follow the company and look for signs of improvement--well ERG have done 20 million dollars worth of cost savings---the accounts cannot be analysed in the traditional way--for the Stockdoctor formula is not set up for ERG---as everything has been written down to zero----which is a pretty abnormal non traditional thing to do.
I repeat the ANZ joint venture--has 23 million in cash in it--the Stockdoctor system wouldn't even take this into account.
Rene Rivkin reckons zero----he has been wrong on a number of occasions--ask Baby Boomer over at Ozestock-he went to school with him---Baby Boomer has ERG.
Cheers,--Steve.