ann out!, page-60

I realise that the variation in loan value affects the P&L but I didn't think it influenced the cash flow other than reducing tax.

I.e. if we realise 600m profit from operations. But the exchange rate drops to 0.89 and loan values increase by $500m in aud terms then we make only 100m on the P&L and thus pay 30m tax (instead of 180m) leaving 570m of cash spare that the company can use as it wishes (partially franked dividends or loan repayments).

My understanding is that you become insolvent when you run out of cash. Not when you make a loss on your P&L.