Lol PG I hadn’t realised that before about my nic.Yes Abu – sort...

Lol PG I hadn’t realised that before about my nic.

Yes Abu – sort of a combination of the devil is in the detail, read between the lines, open to interpretation and if we buy enough time it might work out one day.

You’re right though – the auditors said vanmag couldn’t be equity accounted because they couldn’t obtain the financial records of Golden Falls Trading or they couldn’t prove that Conti owned a controlling share in Golden Falls Trading.

Conti then used this gem from Note 6 of the 2010 Annual Report.

During the 2009 year, Continental acquired 49% of the issued capital of Vanadium and Magnetite Exploration Development Co (SA) “Vanmag” instead of direct interest in the area of interest and as a result the investment should be equity accounted for in accordance with AASB 128, Investments in Associates. In accordance with the requirements of AASB 128, Continental have not equity accounted Van Mag at 30 June 2010 because the investment is classified as held for sale in accordance with AASB 5.

So in this case AASB 5 takes precedence over AASB 128.