Dinkum,The purpose of the accounting rules is to provide based...

Dinkum,

The purpose of the accounting rules is to provide based on probability. A conservative MD would provide 100% upon the issue rearing its head. An incompetent MD will not provide at all, even after this latest court appearance. I would have increased my provisions to cover about 50%. One never knows how court cases pan out.. But $21 million out of a potential loss of over $500 million is a joke and so is Mr Hurst. Don't forget that provisions come off the company's reported bottom line. So his bonus would have been significantly reduced and the share price might have suffered more than it already has, although sites like this one alert investors and they just discount the price they are prepared to pay. It is the mum and dad investors who remain clueless and lose out big time.