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Old 17th Dec 2018, 06:29
  #673 (permalink)  
Rated De
Join Date: Sep 2017
Location: Europe
Posts: 1,305
Originally Posted by CurtainTwitcher View Post
reminds me of a joke...

Wherever it is most useful to the required narrative is the answer.
This precisely is the problem with over reliance on financial statements that provide no detail of materiality. This threshold is management chosen.
Some analysts accept fanciful measures of 'Underlying Profit Before Tax', management chosen measures of profit neglecting things that lower the 'number'. Management chosen 'preferred measures' are neither statutory, measured or even commented on during a general purpose audit. Those with experience of the 'herd of analysts' might be interested why would a management chosen measure be that which upon an analyst relies to make a recommendation of buy, sell or hold? The answer is disturbing in that many of the models that spit out the recommendations are set up that way.

To channel Gordon Gekko, 'Most analysts don't know preferred stock from livestock'

Accounting is but another dark art.

That was basically where I was going with the question. How do Qlink fleets appear on the balance sheet? And the 717, an extremely lucrative fleet by all accounts, where/how does that factor into the wider bottom line I wonder.
Is a great question. The fleet is an asset. It is now owned by Qantas. Book value another question. Whether there is actually a lease charge most likely tied up in commercial-in-confidence. Whether they actually are reported in Qantas or another segment is a good question. These assignments have been known to shift, depending on the preferred narrative.

Qantas still need a new fleet.
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