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That is correct Burnley, and yes, time to enjoy the weekend
However, there is one positive here, I fully believe AZ has more chance at pulling off an IM than you having the ability to discuss SYME, providing something insightful, rather than just discussing the poster.
You'd think after all this time on the board, that you'd maybe be able to contribute something other than a bun fight, but alas.....
We'll luckily for you, the trust you've put in them so far I assume has paid dividends! Just imagine the terrible financial position you'd be in if you'd left your money in the bank whilst they sorted themselves out, or even put into a managed fund scheme.
The one FACT in all of this, if you've been negative regarding this company over the last two years, you've been proven correct.
Seriously?? If the FRC tell the big 4 to jump, the big 4 say how high! the FRC are their regulators!
https://www.frc.org.uk/
https://en.wikipedia.org/wiki/Financial_Reporting_Council
There is no mention anywhere in the FRC statement about big 4. By the way, SYME wouldn't have chosen to put the FRC detailing in the AR, the FRC would have forced them to do so!
Only in this line, context is everything
"The FRC expressed reservations that this
could be achieved based on the information
presented to them"
you need to take that statement, ram it under the BOD's nose, and get an on record satisfactory response. But it should have been dealt with at the AGM, and it wasn't even mentioned.
@Peakhope
Page 66 of the annual report, under headline Principal activities in 2021
"During the year we received an enquiry from
the Corporate Reporting Review Team of the
Financial Reporting Council (“FRC”) in relation
to their review of the FY20 annual financial
statements. The matters raised by the FRC
included:
z The appropriateness of claims that the
Group’s inventory monetarisation solution
could be accounted for as a debt free
solution for a prospective client under IFRS.
The FRC expressed reservations that this
could be achieved based on the information
presented to them, including the accounting
advice previously commissioned by one of
the top accounting firms by the Group, but
did not pursue this matter further given the
Group is yet to facilitate the first inventory
monetarisation transaction."
As a business, you can during your year post transactions to whichever account you see fit, what happens at the year end accounts is that the auditor takes your account/ledgers and backings, and either agrees with you and signs off, or disagrees with you and forces you to make adjustments, that is the process of a year end audit. So you can effectively make a sale in the year, but if the auditor disagrees, they reassign it to the balance sheet.
@ Peakhope
The FRC have stated they do not believe IM true sale will be possible, but, and this is a big but, they won't start the investigation until a first IM has been claimed to be completed. This tells you a couple of things.
One. No true sale IM has never happened, because their (FRC) investigation is parked waiting to see that first transaction.
Two. No matter what the company report, only when the auditors and FRC agree on the transaction being valid, is your POC confirmed. If somehow AZ and the team manage to ensure the legalities of the contract pass accounting standards, that is when you have your 'lift off'.
An analogy, you stand by a car window holding a rock, the police won't arrest you for criminal damage (maybe going equipped btw for any legal bods out there before you start), but they'll warn you if you throw the rock at the window, you'll be arrested. The FRC are the police, AZ is holding the rock. That's the current reality, and the people who attended the AGM missed a trick by getting further and updated information about the FRC involvement at the AGM. I also note AZ massively dodged the Italian POC question, which no doubt relates to the above.
You are a business owner, so you can approach your accountant and ask if the above is true, I'm 100% sure they will agree with what I've wrote above.
Next point, the TB comment "and GAAP accounting treatment is confirmed by Big 4 auditors.", hasn't AZ already said this was confirmed in previous statements? seems strange to state again. Surely if you are playing with others peoples money, you get the i's dotted and the t's crossed before you even start. Which brings back an important point, and that is never underestimate the professionalism of silicon valley venture capitalist's and their multi billion dollar pockets.
Anyhow, with the impending month end news, can some of the uber rampers get on this board and do their stuff, I was pretty sure I'd get a good trade in in July, but the volume and interest is pitiful.
Burnley
I'm chilled, but I feel that people are trying to make this TF RNS (which is positive) into something it isn't (suggestion that it is proof of the SYME business model) in order to get out with their exit prices.
The RNS is positive, but talk what it is, a good step for TFC, but no bearing on the IM true sale model. It is important to define the difference, or else loads of punters get trapped, and no one should want that.
TrevorBrooking
That's not how they work, they don't contact a company to suggest they'll examine in the future. They contact to warn!
Simple analogy, it's like playing football and the referee saying if you go in two footed, I'll give you a red card.
Also, because of the report, you Shareholders deserve the correct communication and answers, here are two questions someone should put to the BOD for the agm, there is no reason neither should not be answered, and by answering them, the BOD will strengthen the position of your holding.
1 - The FRC have reservations regarding the business model, and how the client can account for the movement as a debt free transaction, can you explain under which accounting standard you believe this can be achieved, and if you have had any guidance on this subject, which company have advised you?
2 - Can you confirm, was there any relationship between AZ and TJ prior to the inception of SYME and TF as separate legal entities (may be a very important question to get a definitive recorded answer on)?
I don't generally name call, only to those that have earned it.
Anyhow, page 66, i'll remind you as you haven't commented on my question or got commentary from your father in law
Page 66 of the annual report, under headline Principal activities in 2021
"During the year we received an enquiry from
the Corporate Reporting Review Team of the
Financial Reporting Council (“FRC”) in relation
to their review of the FY20 annual financial
statements. The matters raised by the FRC
included:
z The appropriateness of claims that the
Group’s inventory monetarisation solution
could be accounted for as a debt free
solution for a prospective client under IFRS.
The FRC expressed reservations that this
could be achieved based on the information
presented to them, including the accounting
advice previously commissioned by one of
the top accounting firms by the Group, but
did not pursue this matter further given the
Group is yet to facilitate the first inventory
monetarisation transaction."
SteveK
How did I know you'd be thick enough to get took in by this token AGM RNS?
How is your ICAEW investigation against me going? Surely you weren't all mouth and no trousers were you?
Page 66 of the annual report, I suggest you read it, digest it, show it your fake father in law, and then grow some balls to question your CEO on it
Or do the FRC speak BS also.
Run me through how the SYME IM system has been achieved, and proof of concept confirmed??
This is a warehouse inventory monetisation transaction, which has been in the market for many years, through many companies. Whilst good news for TFC, and will assist with new opportunities, how has this got anything to do with the supposed True Sale IM that Supply@me offer.
You do understand the difference don't you, because the initial message you e typed suggests you don't?
Theanalyzer
Your end paragraph is the key, any CFO/FD who is worth their salt, who is examining and interested in the product, whether they believe it can fit their business, and most importantly, get through the year end audit as a P&L transaction, will thoroughly read the AR, and consider the FRC stance as a real and current risk. This question must be answered at the AGM, it must be put to bed.
I'm obviously not attending the AGM, but I will read it when available. I'm not trading SYME at all at present because their is just no volatility at all, so have no open position.
If I were to attend, and especially if I was a holder of this share, I'd be asking two keys questions this year. They are simply:
1 - The FRC have reservations regarding the business model, and how the client can account for the movement as a debt free transaction, can you explain under which accounting standard you believe this can be achieved, and if you have had any guidance on this subject, which company have advised you?
2 - Can you confirm, was there any relationship between AZ and TJ prior to the inception of SYME and TF as separate legal entities (may be a very important question to get a definitive recorded answer on)?
These questions are solely there to enhance the protection of holders in the share, and no malice is meant by them. I'd encourage any attendee to ask them
Hallowed
reservations is SYMEs explanation for the FRC contact. The FRC may very well term it different, it is an unknown. What is a certainty, IF an IM transaction ever goes through, the FRC will thoroughly audit the accounting treatment and legal implications. Then, you will have your definitive answer. The only reason this query is parked, is because one hasn't been attempted yet.
What I think we should all agree on, is that this question, and especially now it is raised as a risk by the business in the AR, needs answering in complete fullness by the company at the AGM, using exact wording and examples to accounting standards. No more "it works because I say so" fluff, correct terminology and citation.
Also, just a very quick point, an audit would never be qualified for the product they sell.
Page 66 of the annual report, under headline Principal activities in 2021
The exact thing i have been warning about for over a year, but I'm supposedly a fake 15 year old accountant.
"During the year we received an enquiry from
the Corporate Reporting Review Team of the
Financial Reporting Council (“FRC”) in relation
to their review of the FY20 annual financial
statements. The matters raised by the FRC
included:
z The appropriateness of claims that the
Group’s inventory monetarisation solution
could be accounted for as a debt free
solution for a prospective client under IFRS.
The FRC expressed reservations that this
could be achieved based on the information
presented to them, including the accounting
advice previously commissioned by one of
the top accounting firms by the Group, but
did not pursue this matter further given the
Group is yet to facilitate the first inventory
monetarisation transaction."
I posted the below message 13th Jan at 9:54, it's in my history. I always said I was impressed with JC and no-one else in the company. It's time for LTHs to start following the breadcrumbs....it's more apparent today.
"Some of you are starting to go down the right avenues now!
A little off topic, but, everyone likes a story
I used to know someone, we had a shared interest outside of our careers, we also had a third friend.
I lost contact with the first friend in the group.
Luckily the second friend was about to reacquaint us, and it only cost me a beer for him to do so.
The three of us ended up having a lovely meal together.
Anyhow, where was I?
Oh yeah, what business have Parvizal done since..."