Hi allI was wondering if someone can help me out her re the the...

Hi all

I was wondering if someone can help me out her re the the current asset item listed as 'Rebates and RECs'.

In the latest report it has a book value of @$27m, based on a sale price of $40 less holding fees. Note 5 says:

"Rebates & RECs includes $26,779,464 relating to Small-scale Technology Certificates (STCs) held by the economic entity at 30 June 2011. STCs are held at a carrying value of $36 each. STCs have been valued with reference to the legislated fixed price of $40 per certificate that they can be sold at through the STC clearing house managed by the Office of the Renewable Energy Regulator (ORER) less holding costs over the estimated period of time it will take the economic entity to dispose of them through this market."

The market spot price is in @$25-$30.

Mu understanding, however, is that as long as the company isn't forced to sell the STCs on the spot market (as they had to previously), then they will get the 'booked value' of $36. Consequently, the asset isn't currently 'over-valued'.

Am I on the right track?

Cheers