simple maths and fx losses

Dykes's announcement complicating things and effectively trying to hide the truth by not comparing apples and apples (with reference to FX translations) in his announcement.

This is a sinking ship IMO



Simple maths:

Debtors $42m
Receive $10m
Current balance = $20m
Diff is the FX loss $10m (see detail per accounts I posted a couple of months back - I have included an extract below)



More complicated maths:

If I were still an investor then I would take the time (assuming info is even available) to:
1. look at the $10m AUD receipt reported today in CNY (China ccy equivalent) at today's rate
2. Work out the China receivables at 30 June in CNY
3. Calculate percentage recovered versus the China balance


Given FX movements, I'd expect the above to be low % recovered (since AUD has strengthened so much since 30 June).






I posted this on 2 October re FX loss = approx $10m:

FX exposure (Page 40, Note "i")
Debtors are denominated in non-AUD currencies. The AUD has strengthened since 30 June. While the revenue is recorded in AUD at one rate, the physical receipt when/if it is forthcoming will be less (given the amounts of the debtors is likely to a be negative FX difference to P&L for a few million AUD)
AUD/MYR rate has moved +6.8%
AUD/USD rate has moved +9.3%

According to the FX sensitivity table on Page 41:
(weighting actual FX movement versus the 10% indicatives they have provided)
USD : impact 5.8m negative to P&L
MYR: impact 4.2m negative to P&L
Cumulative at 30 Sep = 10m down

I would consider this to be material and should be highlighted IMO by auditors (if not management) as a post balance sheet event to the accounts.