Just did a quick scan of the annual accounts to see if any other misstatements have come up.
In the short amount of time ive looked at the accounts, Ive come across an alarmingly high number of errors.
Some of them are fairly trivial misstatements but when you are paying very big $$ to a so called top 4 accounting firm in Ernst and Young, one would expect all the I's to be dotted and T's to be crossed.
Its not acceptable to have one error in the accounts. If we are going to have errors, lets go with a second tier accounting firm instead.
Some of the errors noted are as follows:
1) As you pointed out in a recent post, on pg82, note 23 of the annual accounts, apparently we paid over $1billion in the 08/09 in auditor remuneration
2) On page 70, we have a listing of CER's investments, including their ownership interest, carrying amount and share of net profit/loss
In the column "carrying amount" it shows the $ value of CER investments in 2009 vs 2008
However the column says "%" rather than "$"
For example, on page 70 the carrying amount of Centro Watt America REIT 1 as at 30 June 2009, is 111,715%.
3) As I brought up in a recent post, I dont understand how the interest rate swap non current liability could be $41m (pg 72) if total contractual interest rate swap payments after 12 months, only amounts to just under $22m (pg 52)
The non current liability should not exceed the maximum contractual interest rate swap payments
4) On page 60, the distribution we received this year was $375.50 per unit, not $0.375 per unit. The column advises that we should multiply all values by 1000.
5) Pg 63, Centro Armidale is in NSW not VIC
These concerns will be passed onto Centro shortly
CER Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
