Actually the IFRS dictate that there will be no understating of loss or liability and overstating assets or income..

However GAAP which is also recognized in kenya allows for overstating of losses and liability and understating of income and assets for various reasons that may arise..

Most GAAP and IFRS do not collide and neither do they contradict each other.. GAAP were developed to smoothen the rigidities of IFRS and so can be adopted by both listed and non listed firms without upsetting regulators..

Secondly I said that the GAAP that allows for overstating of liability and loss can be used for MANY reasons some of which include smoothening out profits..

Here's one of the studies I read.
http://www4.gsb.columbia.../papers/industrystudies

The part you are looking for is on page 77 of the study..

I know You are probably a centum shareholder worried about 2011 profit disaster that awaits and in denial about the superior quality of jubilees management but no hard feelings..

guru, how did you find my link? Thanks

The only way to unlock shareholder value for Jub is to split the share...i think at the next AGM we should lobby for that.

Lobby the directors now, rather than wait for the next AGM. That way they can announce the split together with this year's results. l can't recall HH ever splitting. Bonus, yes and many. A healthy bonus say 1:1 will drive down the price, theoretically by half.

@youcant I primarily invest in stocks whose value is yet to be unlocked and that is jubilee..

The share is too illiquid for institutions and the price too high to interest retail investors and hence it remains stagnant at these levels even though the EPS keeps on climbing.. (another example being williamson tea).. Well im interested And so I will continue accumulating..

@youcant most stock performance charts do not factor bonus share issuances and I would rather look at the 5 year performance because 1 year is too short to analyse accurately..
So If we do an adjustment for bonus shares then jubilee was at 56bob in 2006 and is 180 as of this fridays close.. Centum was at 9bob in 2006 and 23.5 as of friday.. I think jubilee has performed better over 5 years or its relatively the same..

In the recent AGM The management has ruled out a share split in the near term but promised to start giving sweet bonuses in 2011 to boost liquidity but as long as im accumulating they can take their sweet time

guru, my beef is not about the performance of Centum vs Jubilee but about the sale of Carbacid being factored into the results and your assertion that they sold half of it last year. Did you go to the link I prescribed?

This statement "GAAP were developed to smoothen the rigidities of IFRS" is fatally flawed. It suggests that. IFRS came first. IFRS is only being adopted and indeed IFRS 1 talks about first time adoption of IFRS from GAAP.

guru, they are also planning an IPO of one of their private Equity companies, 2 exits and 1 or 2 acquisitions in Southern Africa.
Coupled with their Real Estate investments....

And my skeptism and pessimism about this company reduce even further.. Continue to shed light my brother