The 1/2 year review and interim financial accounts for the six months ending 30 June 2023 were due 29 September 2023 ~ currently 6 months overdue!
The Annual Financial accounts for the period ending 31 December were due 28 March 2024 (yesterday)!
The Annual General Meeting, that is to be held no later than 31 May is contingent on these documents being reported to ASIC.
@camban which one is it indeed? No company can know for sure what is going to happen in the future and is therefor not required to wait until all future events are resolved before reporting. They are required to report on all know events, and likely events, and likely future events, as they stand at the date of signing. The reason for the delay is not acceptable and they are getting away with it because it was (up until 28 March) only the interim accounts, PwC do not issue an audit opinion on the interim accounts and therefor are not accountable for them?
There has been conflicting "finger pointing" with Company representative on who won't actually sign off on the 1/2 year review and interim accounts. On one hand he said the company wont sign off until there is a resolution with the Government and on the other hand PwC won't sign off until there is a resolution with the government.
Then try and get them to explain, why the $30m cash component hasn't been return to shareholders as per the company's own undertaking, other than whilst in negotiations there can be no decision of the return of capital, but they made undertakings .. .. lol ~ my opinion is that the $30m return to shareholders is a pipe dream we can kiss goodbye!
Given that the "Process" was ceased during the December quarter, why hasn't the cash be returned to shareholders, as previously posted and example of a return of Capital (ASX:FAR) took 8 weeks? No where in any of the Company's announcements has the cash assets been tied in with Government "good faith" discussions, until the recent audit announcements and correspondence with the Company.
It all changes now? that the Yearly Audited Accounts are now overdue?
Navigating the Corporations Act is a nightmare but, (as per the quarterly activity report for December) finalisation of the 1/2 year review and interim accounts is subject to an outcome of the discussions with the Government regarding the Company's plans to dispose of its interest in Morila SA.
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?
IMO, if the Directors not being prepared to provide assurances to PwC that there is no contingent liability, then the auditor can't sign off as the financial statements may be misstated?
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 befefits related to a decrease in an assets or of a liability has arisen and can be measure reliably.
I had to chuckled at Michael Weirs statement, being, the Company know their reporting requirements, they understand the rules and regulations and nothing will change when we get delisted and that company will still be under the Corporations Act / ASIC!
I am glad some have the confidence of the distribution of the LLL shares back to shareholders, and it is a reasonable expectation that the Company will honour those undertakings they have been espousing for 21 months now BUT we have gone from;
re: "if it becomes apparent that there is no reasonable prospects of a successful transaction with in a suitable time frame, then the Company will terminate the Process and look to returning cash to FFX shareholders as soon as possible thereafter. The Company is in the process of obtaining a class ruling from the Australian Taxation Office as to the tax treatment on the return of Assets. Following the return of cash to shareholders FFX will then distribute Leo Lithium Shares held by FFX shareholders when they are released from the escrow in June 2024 as per ASX requirements, and subject to their tax treatment as determined by the Australian Tax Office.
to this re: "The company continues with the process of obtaining a class ruling from the Australian Taxation Office as to the tax treatment on the return of assets to Firefinch shareholders. Subject to the outcome of the ruling, shareholder approval, and the Leo shareholding coming out of ASX escrow in June 2024, the Company may then be in a position to distribute the Leo shares."
(20min delay)