The short answer is: by crashing the share price management has reduced the fair value of a deferred liability thus creating an accounting profit for the reporting period.
To prevent accounting chicanery the value of a deferred payment (the 71.5m unlisted options issued to LDA) have to be accounted for as a liability and written up (or down) according to movements in the underlying derived asset - the share price.
The value of the unlisted options that LDA hold as part of the Put Option Agreement is unknown but a fair value is calculated for accounting purposes only according to a mathematical formula that accounts for the uncertainty of predicting future events. Since the calculated fair value of a liability decreased during the reporting period the change in value has to be recognised as a profit.
If the fair value of the options swing the other way in future the change will be itemised as an expense item in the company accounts and will contribute to a loss or a reduction in profit for that reporting period.
- Forums
- ASX - By Stock
- HIO
- Ann: Half Yearly Report and Accounts
Ann: Half Yearly Report and Accounts, page-3
Featured News
Add HIO (ASX) to my watchlist
|
|||||
Last
2.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $24.39M |
Open | High | Low | Value | Volume |
2.4¢ | 2.4¢ | 2.2¢ | $37.04K | 1.595M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 263647 | 2.3¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.4¢ | 563696 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 263647 | 0.023 |
3 | 241363 | 0.022 |
8 | 382308 | 0.021 |
12 | 729549 | 0.020 |
9 | 2509391 | 0.019 |
Price($) | Vol. | No. |
---|---|---|
0.024 | 563696 | 4 |
0.025 | 283918 | 3 |
0.026 | 150000 | 1 |
0.027 | 75000 | 2 |
0.028 | 38230 | 2 |
Last trade - 16.10pm 19/08/2024 (20 minute delay) ? |
Featured News
HIO (ASX) Chart |