RVR general observations, page-23

Hi green ,

I hope you had a green day,

I understand you sentiment and you are right in thinking that there are enormous cost benefits in having residential staff and being able to retain staff.

The accounting standards protect us from having to worry about FIFO verses Residential Staffing in doing our comparisons because all the cost of each operation are bought to account.

Like most things there is not much to understand about accounting basics.

The profit and loss account tells us what revenue we received from the things we sold and exactly what costs we incurred on acquiring. preparing and selling those things.

If we spent money on other stuff which we didn't sell like mining the ore that was left in a stockpile, developing tunnels to get down to the ore, processing ore we didn't sell or exploring for future mining then those costs go into the balance sheet as assets.

We need to be aware that management can make themselves look good by loading the balance sheet with costs that should be expensed through the P&L account. Its important to not get excited about the profitability unless you are happy with the carrying value of the assets.