takeover, page-20

re: siameseparrot siameseparrot:

Sorry, but I totally disagree with you on the accounting issue and I'll quote from the company's announcment. You are totally wrong:

"These higher write-offs were taken after the Board recognised the industry trend of expensing
exploration costs earlier in the cycle than has been the previous practice. As a consequence of this
review, $34.1 million in exploration and development assets have been expensed for the year."

No new accounting rules.

And:

"and higher amortisation and depreciation costs."

No new rules there either.

And:

6. Development and exploration
expenditure written off

Impairment loss on exploration assets 30,620,000
Impairment loss on development assets 3,437,000.

The material impairment of exploration assets in 2006 was the result of an assessment that found that there
was sufficient data to determine certain exploration wells were not technically feasible or commercially
viable.

ARC reviews its development assets for impairment at each reporting period. Based on changes to reserves
estimates of certain fields and higher capital costs than budgeted, $3.4 million of ARC development assets
(2005: $0.8 million) were written off during the year.

Nope, no new rules ther either.