information from the company who where required to clarify this "investment" on the last conference call
"The accounting treatment of the fixed rate note is not a traditional mark-to-market valuation of the fixed rate note, as it does not take into account the interest to be received from 1 January, 2020 until maturity of the note in August 2020, nor does it adjust for the forward curve exchange rate.
The accounting treatment that we have applied in these financial statements is to recognize interest every month in the profit and loss on an accrual basis.
We have thus recognized $6.7 million in interest income from August to 31 December, of which $5.8 million had been received by early December, with the next interest payment received around 10 January.
WE HAVE REVALUED THE PRINCIPAL of ARS 2.2 billion at the spot rate at 31 December, which was 59.92 compared with 44.08 on the issue date,
which resulted in
an unrealized FX loss of $13.2 million.
Thus, the net impact through the P&L is a net loss of $6.5 million,
made up of the unrealized FX loss of 13. 2% in the interest received of $6.7 million.
So with the fx rate now going even higher to 64.5, there will no be positive consequences
GXY Price at posting:
79.0¢ Sentiment: Sell Disclosure: Not Held
