The misclassification of debt was not as bad as everyone is making out. As far as I understand the current debt outstanding at that time can be classified as long term debt as long as the company had a reasonable expectation of refinancing it as such within the next 6-12 months.
Someone with a corporate accounting background would have to clarify the exact rule... could be wrong. Any class action could be defended easily if the above is true IMO.. and anyway, wouldn't the auditor be fully liable unless there was negligence/misconduct on the half of CNP?
Also, for buffett or swap...
I notice on CNP's accounts that they do account for some things on an equity accounting basis, and other assets as 'Financial assets carried at fair value through profit or loss'.
Does this mean that they could avoid the write-downs on CER by carrying it at fair value? Interested to know what you think...
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
