Ann: Third Quarter Cashflow Report-APG.AX, page-25

False9
Thanks for your reply. At least I think you are replying to my request for some facts. Remember my question was about the wrong Cash positions stated in the APG Quarterly Reports, Appendix 5B - Consolidated Statement of Cash Flows
Unfortunately I can’t find any facts in your post. I won’t pretend to understand even half of what you are saying there – but let me make a few points.

Firstly. I am quite satisfied the Auditor – KPMG is doing an excellent job in reviewing/auditing the Half & Full Year reports. I am sure that the Auditor, and APG management is applying the correct AASB standards to the Cash position in the Consolidated Statement of Cash Flows in these audited reports. .
My problem is with the inaccuracy of the Cash positions as stated by the secretary, Nick Gaston in the unaudited APG Quarterly Reports, Appendix 5B - Consolidated Statement of Cash Flows.
It is not the job of the Auditor to check the Quarterly reports, and similarly, it is not the function of the ASX to check the Quarterly Reports, Lack of adverse comment by the Auditor and the ASX – does not mean a tick of approval.

Secondly. False9 – I dont know what kind of accountant you are, but clearly your area of expertise does not extend to the area of corporate reporting requirements.
You have gone to some effort to create an example of something called a Working Capital Cash Report. I have never heard of this type of report – but I suspect a Working Capital Cash Report is some kind of internal report for management use only, to assist in budgeting, and to get a broad picture of incomings & outgoings. .
And it is quite possible that “Cash in transit” and “Outstanding Cheques” and “Cheques in the Mail” and “Recieveables” etc, are all acceptable inputs to this internal report. Management can choose their own criteria for their own internal reports.

But in reports that are mandatory reporting and produced for public viewing - company management does not get to choose what criteria goes into these public reports. The Australian Accounting Standards Board (AASB) sets the standards and definitions that must be followed here.
The Cash position generated by an internal “Working Capital Report has no relevence to the Cash position what comes out each quarter in the Appendix 5B - Consolidated Statement of Cashflows.

A Consolidated Statement of Cashflows - is governed by the same AASB standards regardless of whether it appears in the APG audited Half & Full Year reports , or whether it is in the unaudited APG Quarterly Reports, Appendix 5B.
Obviously, 2 different Consolidated Statement of Cashflows, prepared by 2 different people ( Nick Gaston & the KPMG auditor) , for the same balance date should arrive at the same Cash position. This is not happening because APG is NOT applying AASB standards in the unaudited Quarterly Report, Appendix 5B - Consolidated Statement of Cash Flows.
You might have noticed that in his reply to the ASX, APG secretary - Nick Gaston also made the mistake of calling the Quarterly Report, Appendix 5B a “Working Capital Report”. Could Nick be using the wrong figures from an internal Working Capital Report in the APG Quarterly, Appendix 5B -Consolidated Statement of Cash Flows?


Fact : The Quarterly Report, Appendix 5B is a Consolidated Statement of Cash Flows
Fact: The Consolidated Statement of Cash Flows uses the standard definition for Cash ( as defined by the AASB) – which basically says: Cash = Notes & Coins held + Deposits at Call with Financial Institutions + Highly liquid Investments, with short periods to maturity, which are readily convertible to cash at the investors option, and are subject to insignificant risk of changes in value.
Fact : Nowhere in the above definition does it mention or imply “Cash in Transit” or “Recievables” is acceptable as Cash.

I am not even sure that “Cash in Transit” is a real acceptable Accounting term for use in public reports. I have never seen it used in any public company reports. When I Google – “Cash In Transit” I get a lot of stuff about armoured cars and transporting cash.
When I go to the Australian Government – AASB website and use the Search facility, Keyword = “Cash in Transit” returns nil results.



When the facts change, I change my mind.
Until someone can give me some facts to the contrary – it’s pretty obvious that “creative accounting “ is a pretty mild description of what is really going on here.

Wilcox

PS
Rob 1000 – I enjoy your insightful posts.
Is it because you are NOT an APG shareholder that you can state the obvious?