Ann: Monthly Activities/Appendix 4C Cash Flow Report, page-27

@nottawombat

Usually when one aims to get a true picture of the cost of value of something, they use marked to market. At the current price that would show an additional expense of $7.9 million in the P&L and liability of the same amount on the balance sheet, which is exactly what it is. The value should then be adjusted each year according to the change in value of the ZEPO until it is no longer on the books (i.e. expired or vested).

Of course, the accounting fraternity does not want to do that because it shows immediately the true cost of their managements' excesses.

In this case, if the cost was reflected in the books it would turn DROs $4 M profit into a $4 M loss and some of the over-excited shareholders might realise that they just handed over 200% of last years profit as bonuses and that shareholders actually lost money because of it.