Richard Hemming article in the Australian, page-15

Hi Wolflein

Sadly I've been in Canada for a few weeks, and have been too busy spotting beaver, to pay attention of IMF. Perhaps I should say - happily, I've been in Canada?

"IMF's accounting policies are conservative & does not account for revenue until the cash is received"

Well yes & no.

IMF Bentham only accounts for revenue when a favourable judgement is obtained. Thus a debtors ledger is supported. Nonetheless the account's revenue recognition, based on favourable judgement is as such, conservative. Despite this, in the last three years IMF Bentham have seen major losses in cases appealed, and lost, and so revenue recognised is now subject to an ongoing material contingency.

Furthermore IMF Bentham defers interest & salary expenditure, into the Litigation Contracts in Progress. An accounting compromise between matching over prudence.

I'm a prudence sort of accounting guy. Especially so, when deferred expenditure is on a contingent case outcomes.

Comparable international litigation funders do not adopt this accounting of expenditure.

When confronted between prudence & matching, I prefer prudence, for amongst other aspects I strip all accounting adjustment out of IMF-Bentham's accounts to do my DCF & MVA assessments.

So for me, the tedious accounting puff, is a waste of my time, for even so, after the accounting removals IMF-Bentham still reveals a strong underlying fundamental operation.

i.m.h.o.