Aussie Retailer stocks

[macduffy]

Anyone with an interest in an Aussie retailer should be aware of the pending requirement to bring lease commitments on-balance sheet during 2018/19. See AASP16.

[Snow Leopard]

Anyone with an interest in an Aussie retailer should be aware of the pending requirement to bring lease commitments on-balance sheet during 2018/19. See AASP16.

Given that:
this will affect more than just retailers and;
one of half of the posters do not read the accounts;
the next half do not understand the accounts they read;
and the final half can not add up correctly,

do you want to explain your comment in more detail?

Best Wishes
Paper Tiger

[stoploss]

Given that:
this will affect more than just retailers and;
one of half of the posters do not read the accounts;
the next half do not understand the accounts they read;
and the final half can not add up correctly,

do you want to explain your comment in more detail?

Best Wishes
Paper Tiger


Talking of adding up correctly , did I misread something or how many halves do you have ?

[percy]

For the record.
All Tigers have four halves.Front half,back half,left side half. and right side half.

[macduffy]

Given that:
this will affect more than just retailers and;
one of half of the posters do not read the accounts;
the next half do not understand the accounts they read;
and the final half can not add up correctly,

do you want to explain your comment in more detail?

Best Wishes
Paper Tiger

It's a bit too complex for a simple animal like me, Tiger, but suffice to say that the new accounting standard will require lease commitments to be brought on balance sheet and depreciation charged each year. The net result will be higher charges in the earlier years of a lease and lower charges in the later years. It will obviously affect individual companies in different ways but retailers are typically big users of leased premises and as a class will therefore be affected. That's about as much as I can manage; others may explore the subject more thoroughly.

:)

[percy]

I think a great number of investors have not fully understood the ongoing liability of leases.
This will be wake up call for them.