AVR 1.52% $7.11 anteris technologies ltd

Someone is fibbing or someone doesn’t understand accounting rules

  1. 139 Posts.
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    I don’t profess to know the answer to this one and I’m hoping someone on the board with strong accounting knowledge can help clarify.

    To be clear I could quite easily be the one who doesn’t understand accounting rules and I’d welcome that feedback (if in fact it’s correct).

    I like cash flow statements, they are my favourite of all the financial statements as I believe they are the hardest to fudge/manipulate.

    From today’s 4C I’m deeply confused.

    Patto says “The closing cash and short-term investments balance as at 31 December was $16.1M. For statutory reporting purposes Admedus is required to disclose short-term investments greater than three months as Other Receivables, as opposed to Cash. As at 31 December Admedus had invested $7.1M in term deposits, disclosed as Other Receivables”.

    I read the 4C and if you ask me Admedus had $8.968M cash as at end of Dec qrt...

    I also hold an investment in Clinuvel (CUV). CUV has held onto large sums of cash for many years now, some of which sits in term-deposits, and appears on the 4C. As per the last CUV annual report they call these ‘short-term deposits’ and they have an average maturity of 199 days. When I read CUVs 4C I can see all the cash they hold listed (no real discrepancy due to long-term investments).

    199 days > three months, yet CUV still manage to report as cash and cash equivalents (Call Deposits) whereas AHZ must disclose as Other Receivables.

    I guess my questions are:

    1. Is the definition of Short-Term investment up for debate or it is clearly defined? (If so what’s the definition)
    2. How much cash was Admedus actually holding on 31 December 2019?

    Thanks in advance

    (Btw I still have no confidence that cash management is under control, I believe another capital raise is almost a sure thing - and earlier than the 12-24mth timeline I previously stated - I think it’ll be needed in 2020).

 
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