Respect, page-79

Deanlong, a million dollars is not lost.

S&G bought a number of assets and paid an amount greater than fair value of tangible assets in recognition of potential future cash flows - otherwise known as goodwill.

Earlier this year the finance team completed a value-in-use calculation that estimated to best of knowledge PV of future cash flows. That calculation created a shortfall that indicated an impairment of goodwill.

The practical consequence of that accounting exercise is there is no consequence other than a revaluation of a balance sheet. The assets are still there, the potential for those assets to produce the cashflows warranting that goodwill is still there, the networks ar still there, the works in progress purchased is still there, the receivabkes acquired are still there.

Would you please explain where this $1m loss is you talk of. I'm talking real cash gone not accounting loss.

This is a very important concept for an investor to get their head around, I'm very keen to hear your explanation.