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CENTUM FULL YEAR 2010/2011 RESULTS
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mwekez@ji
#61 Posted : Sunday, June 26, 2011 9:46:14 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
guru267 wrote:
In the case where companies profits are heavily impacted by swings in the NSE like jubilee, centum, britak and the rest they should put in measures to smoothen out the profits in following years and prevent earnings volatility... After further reading I have found these measures are practiced by many insurance firms & investment companies..

Some measures include valuing quoted equities at historical cost and inflating expenses(for a bull market)
...


provide us with link to this stuff that you have been reading or smoking Laughing out loudly Laughing out loudly Laughing out loudly I would have expected that as an informed investor you know that International Financial Reporting Standards does not allow overstating or understating of income and all other items in the books.
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guru267
#62 Posted : Sunday, June 26, 2011 10:03:14 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
mwekez@ji wrote:


provide us with link to this stuff that you have been reading or smoking Laughing out loudly Laughing out loudly Laughing out loudly I would have expected that as an informed investor you know that International Financial Reporting Standards does not allow overstating or understating of income and all other items in the books.




Actually the IFRS dictate that there will be no understating of loss or liability and overstating assets or income..

However GAAP which is also recognized in kenya allows for overstating of losses and liability and understating of income and assets for various reasons that may arise..
Mark 12:29
Deuteronomy 4:16
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mwekez@ji
#63 Posted : Sunday, June 26, 2011 10:35:40 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
guru267 wrote:



Actually the IFRS dictate that there will be no understating of loss or liability and overstating assets or income..

However GAAP which is also recognized in kenya allows for overstating of losses and liability and understating of income and assets for various reasons that may arise..


All listed firms must report as per IFRS. Besides, both IFRS and GAAP do not provide for a company to understate or overstate its books inorder to smooth out the profits. We where have you been reading that stuff of smoothing out the profits?
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guru267
#64 Posted : Sunday, June 26, 2011 12:31:38 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
mwekez@ji wrote:

All listed firms must report as per IFRS. Besides, both IFRS and GAAP do not provide for a company to understate or overstate its books inorder to smooth out the profits. We where have you been reading that stuff of smoothing out the profits?


Most GAAP and IFRS do not collide and neither do they contradict each other.. GAAP were developed to smoothen the rigidities of IFRS and so can be adopted by both listed and non listed firms without upsetting regulators..

Secondly I said that the GAAP that allows for overstating of liability and loss can be used for MANY reasons some of which include smoothening out profits..

Here's one of the studies I read.
http://www4.gsb.columbia.../papers/industrystudies

The part you are looking for is on page 77 of the study..

I know You are probably a centum shareholder worried about 2011 profit disaster that awaits and in denial about the superior quality of jubilees management but no hard feelings..


Mark 12:29
Deuteronomy 4:16
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erifloss
#65 Posted : Sunday, June 26, 2011 12:46:51 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
@Mwekez@ji, overstating of liab. thus expenses happens all the time. Most people over rely on audited accounts when auditors are just there to ensure that the books of accounts do coincide with the financial statements. Overstated liab.(& expenses) as long as they have supporting docs can be written off as income in another period, many holding & investment companies do this all the time. That's why when a lot of questions come up, most people go for forensic audits. Have you never asked yourself why when their is growth in income their's always a coinciding growth in expenses & vice versa.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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youcan'tstopusnow
#66 Posted : Sunday, June 26, 2011 2:15:05 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
guru, how did you find my link? Thanks
GOD BLESS YOUR LIFE
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youcan'tstopusnow
#67 Posted : Sunday, June 26, 2011 2:40:37 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Oh, and not that past performance is a reflection of future performance, but Centum spanked the shit out of Jubilee in terms of share price appreciation from 31 Dec 2009 to 31 Dec 2010. Wouldn't be surprised if that is replicated in the next 5 year average
GOD BLESS YOUR LIFE
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the deal
#68 Posted : Sunday, June 26, 2011 3:21:35 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
The only way to unlock shareholder value for Jub is to split the share...i think at the next AGM we should lobby for that.
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youcan'tstopusnow
#69 Posted : Sunday, June 26, 2011 3:46:03 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
the deal wrote:
The only way to unlock shareholder value for Jub is to split the share...i think at the next AGM we should lobby for that.

the deal, I fully agree. But I doubt whether aga khan will listen
GOD BLESS YOUR LIFE
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Gordon Gekko
#70 Posted : Sunday, June 26, 2011 4:05:39 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
youcan'tstopusnow wrote:
the deal wrote:
The only way to unlock shareholder value for Jub is to split the share...i think at the next AGM we should lobby for that.

the deal, I fully agree. But I doubt whether aga khan will listen

Lobby the directors now, rather than wait for the next AGM. That way they can announce the split together with this year's results. l can't recall HH ever splitting. Bonus, yes and many. A healthy bonus say 1:1 will drive down the price, theoretically by half.
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  | | Edit by user: Sunday, June 26, 2011 4:07 PM | Reason: Not specified
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