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old news but worrying

  1. http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/02%2F460+ASIC+releases+stage+one+results+of+accounting+surveillance?openDocument

    "02/460 ASIC releases stage one results of accounting surveillance Wednesday 18 December 2002
    Mr David Knott, Chairman of the Australian Securities and Investments
    Commission (ASIC), today provided the stage one results of ASIC's most
    recent accounting surveillance project.

    In the last three months ASIC has reviewed the audited full-year
    financial reports of more than 1000 listed companies with balance date
    between 30 June and 31 July, looking at three particular risk areas:
    capitalised and deferred expenses
    recognition of revenue, and
    recognition of controlled entities and assets

    These three risk areas were seen to be significant in producing misleading financial reporting in the failures of Enron and other high
    profile companies in the United States.

    'Our review to date confirms ASIC's belief that there is no reason to
    believe that the type of accounting abuses identified in the United States pose a material risk in Australia', Mr Knott said.

    'During this review it was noted that there is a reasonably high
    incidence of auditors either qualifying company accounts or highlighting risks through "emphasis of matter" commentary relating to going concern.

    This suggests that there is a reasonably high level of transparency in
    financial reporting on this significant matter."

    ................>
    "Companies with an 'emphasis of matter' in the audit report relating to significant uncertainty about solvency:"
    ............>
    (list includes) "Federation Group Limited "
    ...........>

    Has the Federation Chairman explained to shareholders how FDR ended up on this list?
    What is the relevance to FDR's continuance under the present circumstances?
    How would a drop in the value of shares in Aussie Apparal affect FDR in light of this mention?
    What is the present saleable value of SLE?

    Come on Johnny.

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