re: Ann: Update on asset carrying values and ... robertchThanks...

re: Ann: Update on asset carrying values and ...

robertch

Thanks for the reply - in their half yearly annual report released in just February of this year they said the following

"Loans to associates

The loan portfolio of $88.2 million consists of loans to Aspen Group’s funds management entities. A detailed review has been performed on the recoverability of all loans to associates. Subsequent to the carrying value assessments at each syndicate level as noted above, all associates were in net asset positions and therefore any loans outstanding are considered fully recoverable at period end, with the exception of Aspen Dunsborough Lakes Ltd where an impairment of $0.7 million was recorded."

Whilst I can acept write downs against inventory I have a lot of trouble with $81,000,000 worth of loans – how could the horizon have changed so much in a 6 months period

Another thing I am trying to work out - someone here may be able to help me

Take Dunsborough Lakes as an example - as of the half yearly report tabled in February this year that syndicate owed APZ $28,923,000 - we wrote off $25,200,000 which left a carrying value of $11,100,000 - $28,923,000 minus $25,200,000 leaves a carrying value of $3,723,000 not $11,100,000 - does this mean in the last 6 months we have ploughed an extra $7,377,000 into a syndicate that was not going to be able to repay the first allotment of money - if this is the case any manager who authorise this increase in funding would not have a job in any bank that I know

The same applies to the Development fund where the difference is far worse as the figure is $24,256,000 which seems to have been pumped in since the half yearly report

I have I got this right or am I miss-interpreting the figures

Clyde