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Safaricom Investment Company - IFRS Impact on FY2019
maina20
#1 Posted : Wednesday, February 05, 2020 11:44:42 AM
Rank: Member


Joined: 7/21/2010
Posts: 249
Location: nairobi
Just received the Financial reports for SIC-FY2019...how can change in reporting swallow ksh500 Million Operating profit?
https://gallery.mailchim...ancial_Accounts_2019.pdf
..desire to succeed is always fighting with fear of failure..
wukan
#2 Posted : Wednesday, February 05, 2020 12:09:35 PM
Rank: Veteran


Joined: 11/13/2015
Posts: 1,336
Expect to see more damaged balance sheets going forward.
Ericsson
#3 Posted : Wednesday, February 05, 2020 3:09:25 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,171
Location: NAIROBI
wukan wrote:
Expect to see more damaged balance sheets going forward.


That is an excuse for poor performance.
IFRS has prevented cooking of books
maka
#4 Posted : Wednesday, February 05, 2020 5:26:37 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,318
Location: Nairobi
Ericsson wrote:
wukan wrote:
Expect to see more damaged balance sheets going forward.


That is an excuse for poor performance.
IFRS has prevented cooking of books



True....
possunt quia posse videntur
murchr
#5 Posted : Thursday, February 06, 2020 5:52:20 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,337
I see the big hole in sale of land and housing. Plus what's with the hike in internet expenses?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
maina20
#6 Posted : Thursday, February 06, 2020 8:11:07 AM
Rank: Member


Joined: 7/21/2010
Posts: 249
Location: nairobi
murchr wrote:
I see the big hole in sale of land and housing. Plus what's with the hike in internet expenses?

The Property market is currently low, even Prism Towers are yet to get a tenant -one year down the line. Harambee sacco is also struggling to dispose land on target profit margins - https://www.businessdail...4024-c8enawz/index.html
I agree, a change in reporting standards is not a scape goat for market reality...
..desire to succeed is always fighting with fear of failure..
RIEK01
#7 Posted : Thursday, February 06, 2020 11:17:16 AM
Rank: New-farer


Joined: 2/8/2018
Posts: 60
The investment in the Zaria project is the cause of the current situation, Ksh 448 m was paid in 2019 for the venture in a time when property market is facing headwinds. This kind of deals are the cause of collapse companies ask Trans Century.
ngapat
#8 Posted : Thursday, February 06, 2020 11:29:15 AM
Rank: Member


Joined: 12/11/2006
Posts: 848
Stima investment has been through this for last two years and still no signs of coming out soon. Thought SIC was well managed but im surprised
“Invest in yourself. Your career is the engine of your wealth.”
RIEK01
#9 Posted : Thursday, February 06, 2020 11:43:06 AM
Rank: New-farer


Joined: 2/8/2018
Posts: 60
There was a change in management in Feb 19, they should be looked at with more scrutiny.
maina20
#10 Posted : Thursday, February 06, 2020 4:58:50 PM
Rank: Member


Joined: 7/21/2010
Posts: 249
Location: nairobi
ngapat wrote:
Stima investment has been through this for last two years and still no signs of coming out soon. Thought SIC was well managed but im surprised


There is an AGM this weekend...
..desire to succeed is always fighting with fear of failure..
Ericsson
#11 Posted : Thursday, February 06, 2020 5:12:14 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,171
Location: NAIROBI
RIEK01 wrote:
There was a change in management in Feb 19, they should be looked at with more scrutiny.


The previous management made their money and left
murchr
#12 Posted : Thursday, February 06, 2020 5:26:41 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,337
maina20 wrote:
murchr wrote:
I see the big hole in sale of land and housing. Plus what's with the hike in internet expenses?


The Property market is currently low, even Prism Towers are yet to get a tenant -one year down the line. Harambee sacco is also struggling to dispose land on target profit margins -

https://www.businessdail...4024-c8enawz/index.html

I agree, a change in reporting standards is not a scape goat for market reality...


Everything else seems to be normal apart from sale of land and housing. The economy is hurting everyone
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Ericsson
#13 Posted : Saturday, February 08, 2020 3:59:40 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,171
Location: NAIROBI
murchr wrote:
maina20 wrote:
murchr wrote:
I see the big hole in sale of land and housing. Plus what's with the hike in internet expenses?


The Property market is currently low, even Prism Towers are yet to get a tenant -one year down the line. Harambee sacco is also struggling to dispose land on target profit margins -

https://www.businessdail...4024-c8enawz/index.html

I agree, a change in reporting standards is not a scape goat for market reality...


Everything else seems to be normal apart from sale of land and housing. The economy is hurting everyone

So it needs skill and skin to avoid being burnt
murchr
#14 Posted : Saturday, February 08, 2020 5:21:15 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,337
Who is attending the meeting?

Admin move this tgread to the appropriate section
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
tkzee
#15 Posted : Monday, February 10, 2020 11:26:51 AM
Rank: Member


Joined: 7/13/2010
Posts: 160
Location: rift Valley-Naks
maina20 wrote:
Just received the Financial reports for SIC-FY2019...how can change in reporting swallow ksh500 Million Operating profit?
https://gallery.mailchim...ncial_Accounts_2019.pdf


Looks like the revenue recognition was not proper.Revenue was previously recognised when customer made a deposit.Currently,recognition is done once the selling process is completed. I would say IAS 18 was not very clear on revenue recognition hence for room for manupulation.
''i can calculate the motion of heavenly bodies,but not the madness of people''-Isaac Newton
maina20
#16 Posted : Monday, February 10, 2020 11:44:33 AM
Rank: Member


Joined: 7/21/2010
Posts: 249
Location: nairobi
tkzee wrote:
maina20 wrote:
Just received the Financial reports for SIC-FY2019...how can change in reporting swallow ksh500 Million Operating profit?
https://gallery.mailchim...ncial_Accounts_2019.pdf


Looks like the revenue recognition was not proper.Revenue was previously recognised when customer made a deposit.Currently,recognition is done once the selling process is completed. I would say IAS 18 was not very clear on revenue recognition hence for room for manupulation.


d'oh! Sad Sad https://www.businessdail...49468-frc18h/index.html
..desire to succeed is always fighting with fear of failure..
Mukiri
#17 Posted : Thursday, February 13, 2020 3:59:48 AM
Rank: Elder


Joined: 7/11/2012
Posts: 5,222
Ericsson wrote:
murchr wrote:
maina20 wrote:
murchr wrote:
I see the big hole in sale of land and housing. Plus what's with the hike in internet expenses?


The Property market is currently low, even Prism Towers are yet to get a tenant -one year down the line. Harambee sacco is also struggling to dispose land on target profit margins -

https://www.businessdail...4024-c8enawz/index.html

I agree, a change in reporting standards is not a scape goat for market reality...


Everything else seems to be normal apart from sale of land and housing. The economy is hurting everyone

So it needs skill and skin to avoid being burnt

Diversification IMO

They should get into the business of drilling boreholes... and start with the properties they've sold. My thinking is, if people made use of the idle land they bought, they'd have money to buy more property and/or shares. When the land is dry, the pockets are dry, income and dividends dry

Proverbs 19:21
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