FY2012 Result: my worst fear
Quote:
Originally Posted by
Snoopy
From the bottom of p12 of the 2012 financial statements:
"The Group enters into transactions whereby it transfers assets recognised on its Statements of Financial Position, but retains either all risks and rewards of the transferred assets or a portion of them. If all or substantially all risks and rewards are retained, then the transferred assets are not derecognised from the Statements of Financial Position. Transfers of assets with the retention of all or substantially all risks and rewards include, for example, securitised assets and repurchase transactions." (my bold emphasis)
So HNZ retains the downside risk for their sold off securitized assets after all?
I approve of HNZ using securitized loans to optimize their capital structure. But if these same loans can be used to hide liabilities 'off the balance sheet' then this is a real worry. If I was a shareholder, this is the question I would be asking at the HNZ AGM!
SNOOPY