About / Contact us.
Submit an Article

Front Page 

News : Local Last Updated: Jan 7th, 2022 - 06:49:03

iCreate's iffy accounting
By Marston Gordon
Dec 27, 2021, 13:22

Email this article
 Printer friendly page
iCreative accounting just don’t add up, for a starter its third quarter 2021 report is incorrectly labeled on the pdf as “iCreate Q2 Unaudited FS Ending June 30, 2021” but reports for the September 2021
quarter except that the top 10 shareholders list is for the June 2021 quarter. Even then there are eleven shareholders on the top ten listing. My guess is that the filing was so late (27 days) that they cobbled
the report together and never bothered to change the name of the file or update the list. The report itself is futuristic in that it is period “ending” instead of “ended”.

On the Profit & Loss (P&L) Statement the three individually reported quarters does not add up (equal) to the year to date third quarter as at September 2021 as “Other Income” was magically reduced by $2.249m and “Finance Costs” by $2.291m. There is no Earnings Per Share (EPS) line on the P&L.

The Balance Sheet for the three quarters of 2021 also had inconsistencies. The Issued Share Capital for the first two quarters fell by over $618k and was corrected only in the third quarter. Retained Earnings
suffered similar fate only that it increased by a whopping 20.268m in the first two quarters and almost corrected in the third quarter. How the balance sheet balanced is beyond me.

The two senior managers listed are Tyrone Wilson and Shanan Smart, the latter does not appear to be a director of the company. It’s fair to conclude that there is no role of financial controller (FC)
or chief financial officer (CFO); the patient needs financial help to get well. I don’t know that the Mentor, Lissant Mitchell, can do the job although he has been recently appointed to another critical patient on life support over at Purity.

There is material uncertainty relating to going concern as expressed by the auditors in the December 2020 audited accounts. The company continues to make losses and its
current liabilities far exceed its current asset. The idea that the company can come back to the market to raise capital (in this state) is unrealistic.

I think there is hope for the company, but first they should fire the Mentor and hire a qualified accountant. They have implemented some very innovative things and there is
great promise. Worth keeping an eye to see how it unfolds.

As an afterthought, where are the regulators in all of this? You mean there is no cross check of anything, they just put it out there; not even a warning “use at your own risk”.

Source: Jamaica Stock Exchange

© Copyright 2004 by PayPerEditor.com

Top of Page

Latest headines.
Latest Headlines
fee fee banks
iCreate's iffy accounting
Caribbean Cement Coup
Broken circuit
One38 Calibre
Liquidity on the JSE
Back to the hedge
JSE stocks pick 2020
30 years on, it’s the same Rollins deal
Palace shareholders not amused