Once again, the accountants at the Quinn Group have shown their expertise at creative accounting! In their desperation to show a profit for the year ended 31st December 2012, they have not followed the generally accepted accounting principles for depreciation, or those used by the Quinn Group for the previous 20 years.
Instead they have applied an unrealistically low depreciation figure for the Group’s assets. In the current climate, even those with the most positive thoughts about the new regime at the Quinn Group, must see this for the charade that it is?
It is hard to see how the company can claim a €7 million profit. If depreciation was treated as it had been before, and if interest had been paid on the full €1.2 billion owed, rather than the €475 million that they are paying it on, this €7 million profit would turn to a €50 million loss.
Interestingly, the new auditors of the company are Ernest and Young, who of course proved their high standards in their auditing of Anglo Irish Bank’s accounts.
The word on the street is that 2013 will look €20 million worse than 2012, and 2014 worse again. This is, of course, assuming that the same accounting practices are used, which is far from certain!
It begs the question, if those running the company are prepared to blatantly misrepresent its position now, did they subject Minister Noonan to the same creative accounting practices ahead of the April 14th 2011 takeover?
1 comment:
the three card trick of the state... what a corrupt country of them in the gang cartel
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