[bhonegger]

I don’t understand how some people are saying the redundancy plan was not communicated/announced? The employees are on strike and all the media is aware, the implication is very strong here

[bhonegger]

Q1
Business risk:

Liquidity: 0.3m in cash with acquisition planned and already 0.7 gearing
Gearing: 70% liability, potential high interest cost and covenants
Continuity of funding on Residential: Government reducing funding on grants, it’s 25% of their Revenue, any going concern risk?
Exposure to Property market: On their commercial undevelopped land held at FVTPL, in case of market crash (2008), very large SOPL charge and risque of insolvency
Reputational: Disposal of the sub with redundancies, negative media coverage and strike with costs

Audit risks:

Grants: Are they recognised in line with IAS20? Risk they are deferring when not allowed
Land: Investment property, requirement to FVTPL, incorrect 10K gain when it should be 1m loss, risk the rest of portfolio is misstated
Disposal of rail: Risk that the disposal of asset is incorrectly recorded, very material figure. Disclosure risk: Should be showing as Discontinued operation
Disposal of agriculture: Risk provision is overstated as training costs not allowed. Same risk as above, shoud show as discontinued operations. Risk of litigation if any redudancy deemed unfair dismissal

Audit of restructuring provision:
*Recalculate employer calculations, agree to employee salary per GTN
*Obtain letter from ER to EEs, verify date
*Obtain copy of media coverage for audit file
*Ensure in line with employment law and taxation law for any taxable/non taxable lump sum

Anyone with theirs? I feel like I could have missed loads

[Author]

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