Ann: Section 258F Corporations Act Capital Adjust, page-5

re: Ann: Section 258F Corporations Act Capita... Corporate,

Excellent work though I still believe this change is not in the best interests of shareholders. I had believed that provided the 'Same Business Test' was passed the losses would result in a reduction of future tax payable, and was likewise dismayed at the prospect of 'gifting' over $32m to the ATO in future tax not payable.

Truth be told, I would prefer the accumulated losses sit there still as a reminder to the board of what happens when hubris creeps into the acquisition process. Even if 'only' $625k in deferred tax asset is lost, it is too much.
As Petepan correctly states, it has the false effect of making ROE & ROC look better than they are based on how shareholder funds have been used historically.

I believe COF is very good value at current prices, but past mistakes should be kept front of mind as the business returns to normality - Eternalgrowth