If you see the cogs (aisc) out of 1h 2016 report you should be able to also explain why these cogs would drop so much in your assumptions for 2017 (Y know that cogs are just operation costs and no capex)???
Normally capital works are expensed over a period of time where that work will contribute some new revenue to future earnings. The idea is to match revenue to expenses under the GAAP matching principal. However, when a company is in financial stress, that is not the most conservative method of accounting. I'm not an accountant so I can't point you to specifically how this is done, but I believe it's to do with recognising fair value in times when things aren't rosy, and is something I've seen before on several occasions.
- Forums
- ASX - By Stock
- TGS
- Ann: Study Confirms Potential Cobalt Production for Tiger-TGS.AX
Ann: Study Confirms Potential Cobalt Production for Tiger-TGS.AX, page-49
-
- There are more pages in this discussion • 19 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)