guru267 wrote:lochaz-index wrote:Kausha wrote:South Sudan yet to be written off. Until that happens I wouldn't touch Coop simba and muiganania.
Agreed. None of KE's banks is forthright when it comes to valuation of their SS holding. It should be a complete write down in most if not all cases. Is the regulator complicit by turning a blind eye? Banks should not be allowed to carry dullard subsidiaries at such a high premium relative to fair value.
I thought banks wrote down over half of SS assets in 2015.
Plus in terms of materiality guys like Co op would not be hurt in the slightest if they wrote off SS assets.
They did but it didn't reflect fair value at the time vis a vis the SSP rate used in preparation of the books.
Even assuming that they correctly accounted for the losses back then, the SSP is still on a nosedive to date and for all practical purposes it maybe useless, meaning more fx write downs for the current accounting period.
If Coop's losses in SS were immaterial they shouldn't have hesitated to account for them fully. After all the damage would have been negligible.
Looking at it realistically(after the initial write downs), can any of the banks manage to recoup the carrying value (as indicated in their books) of their SS holdings? I very much doubt it. They still have some write offs to book from that end.
The main purpose of the stock market is to make fools of as many people as possible.