LLL (ASX) Ann: 2023 Annual Financial Report Lodgement

Originally posted by fooca: ↑

Totally agree .. ... ... it is BS

Where have we seen this before ????

Maybe they need to change auditors?

@camban using your previous quote on FFX "Historical financial reports are meant to be factual not flexible."
As per ASIC, information should be produced on a timely basis and supported by the appropriate analysis and documentation, which would include a contingent liability disclosure regarding an unquantifiable liability probable in the future?

Finalisation of financial statements should not be subject to the resolution of future events, and the statements must include notes about likely future events that cannot be quantified to cater for this?

These are reported as either contingent assets or contingent liabilities, this is a legislative (Legislative Instruments Act 2003) requirement under the Corporations Act Section 299;
(d) give details of any matter or circumstance that has arisen since the end of the year that has significantly affected, or may significantly affect:
(i) the entity's operations in future financial years; or
(ii) the results of those operations in future financial years; or
(iii) the entity's state of affairs in future financial years

(e) refer to likely developments in the entity's operations in future financial years and the expected results of those operations .. .. ..

It is also a legislative requirement of the Australian Accounting Standards Board, AASB 137 Provisions, Contingent Liabilities and Contingent Assets;
Paragraph 10; A contingent liability is
(a) a possible obligation that arise from past events and whose existence will be confirmed only be the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or
(b) a present obligation that arises from past event but is not recognised because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or
(ii) the amount of the obligation cannot be measured with sufficient reliability.

AASB 134 reporting requirements;
Paragraph 16 (j) changes to contingent liabilities or contingent assets since the last annual reporting date,
Paragraph 30 To Illustrate;
(a) the principles for recognising and measuring loses from inventory write-downs, restructurings, impairments in an interim period are the same that the entity would follow if it prepared only an annual financial report. However, if such items are recognised and are measured in one interim period and the estimate changes in a subsequent interim period of that annual reporting period, the original estimate is changed in the subsequent interim period either by accrual of an additional amount of loss or by a reversal of the previous recognised amount.
Paragraph 33 the Framework says that expenses are recognised in the income statement when a decrease in future economic benefits related to a decrease in an assets or of a liability has arisen and can be measured reliably.

SMH

cheers

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The easy answer might be, they don’t want to disclose the bill they’ve been slugged with if there remains a good chance of it being substantially lessened via negotiations, and disclosure of such may lock the gov in to that figure.

Think I’ll back the judgement of a management team universally lauded as a great get for the company before the Junta went rogue, over a few punters on HC CONSTANTLY telling these highly experienced professionals how to do their jobs despite having no qualifications, experience nor relevant information on the situation.

Back to waiting on a resolution…it might not be all we want, but I’m confident management are doing all they can do.