AGL - Accordant Group. was previously AWF Madison, Allied...

[Snoopy]

I have searched through the Annual Report for FY2016. There is no further mention of the $1.3m adjustment referred to in the Chairman's address. I hope he is right and the benefits of this adjustment flow thorough to future years. But in the absence of further information, as an investor, I believe I should treat this as a 'normal business expense' that does not distort the result for this year.

That wasn't very diligent of me.

Further detail of this $1.3m debt does appear on p39 of AR2016, with a note that $0.3m of provisioning has been taken on the books against it. Fast forward one year to AR2017 p41 and the debt has grown to $1.4m (not sure how as the company owing the debt was put into receivership by AWF: Could the difference be receivership fees?). Total provisioning against this debt has jumped to $0.8m, and that means an extra $0.5m in provisioning provided over FY2017.

Now I have this extra information I will have to decide if the debt incurred was part of normal operations or a significant 'one off'. Hmmmm?

SNOOPY