Counsel's opinion, page-39

Do not disagree entirely Madtrader - after all these types of financial entities are buying what amounts to a black box initially. Not so much in their eyes but certainly in the eyes of the external observer. I would say that amortised cost method should be seen as a more conservative approach and a better window into the values being extracted from the PDL/PDPs. Both methods will only give a guide as to the financial health of the entity if they are prepared by experienced and honest CEOs,CFOs and their staff in this field.

So yes - both methods can have black box characteristics the depth of which will depend on the skills and honesty of the operators.

Finally I am not saying that PNC has got it wrong either because I have already made it clear that I have read Keith John's accounting standard explanation within the half year accounts and cannot find any certain reason to fault him. The only point where a question could be raised is whether he is recovering crystallized discounted debt or recovering principal and future interest payments on assigned discounted individual contracts (SPPI) which might raise questions at the financial instrument classification level.