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| Subject: ERG owns 19.997% Card Etc AG--Equity accounted. | |
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Author: anonymous |
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Date Posted: 22:09:49 11/08/02 Fri http://www.erg.com.au/invst_relations/reports/annrept/2002_financials.pdf ------------------------------------------------------------ Non-traded Shares in Other Corporations Investments in other corporations represent interests in card.etc AG and the Cooperative Research Centre for Broadband Telecommunications and Networking Trust. At 30 June 2001, these investments also included a 10% interest in Proton World International SA (PWI), an entity wholly owned by the consolidated entity since 15 March 2002 (refer to note 44). At 30 June 2002, ERG held 19.997% of the share capital of card.etc AG at a carrying value of $7,496,795. These enterprises are involved in the development and marketing of smart card technology and provide strategic alliances for the commercialisation of the consolidated entity’s own smart card and electronic ticketing solutions, further details of which are set out in note 1(k). The carrying value of the consolidated entity’s investment in PWI at 30 June 2001 was $25,904,576. ------------------------------------------------------------ NTA for ERG will rise in the immediate sense once the acquisition of Proton is legal. It will not be reflected--untill the entity reports in March 2003--for the half year 30/6/2002 to 31/12/2002. Asumming it is formalised by then.The carrying value given above for Proton is for ten percent of the investment the ERG Group had in it on the 30/6/2001---The Group currently has 100% of it and it is generating much more revenue now than it did then. ------------------------------------------------------------ http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5596523 ------------------------------------------------------------ http://www.stockhouse.com.au/bullboards/viewmessage.asp?no=5586086 ------------------------------------------------------------ http://www.erg.com.au/invst_relations/prospectus/prospectus_for_lodgement.pdf ------------------------------------------------------------ PWI was formed in 1998 and its current shareholders are Banksys (60%), Amex (10%), Interpay (10%), Visa (10%) and ERG Card Systems Ltd (10%). Following completion of the acquisition ERG will own 100% of PWI. ------------------------------------------------------------ 4.1.8 PWI Financial Information The financial performance of PWI to date has been based largely on licence fees from the licensing of its core technology to customers globally. ------------------------------------------------------------ Over the past 12 to 18 months those customers have provided PWI with specific details of the functionality and products they require. As a result, PWI set out to develop Proton Prisma and the Proton Conquesta range of products. These products will only become available to the market at the end of this year and the beginning of next year. ------------------------------------------------------------ At that time PWI will move from a basic technology developer to a commercial organisation capable of exploiting its technology and providing a range of services to its customer base. Many of the licences taken up will only see cards issued for the first time in 2002. ------------------------------------------------------------ Based upon its own estimates and estimates provided by the existing licensees, PWI expects to see the number of cards issued globally incorporating its technology grow from 36 million today to over 100 million within two to three years. That card base should generate increasing revenue for PWI.ERG LIMITED ABN 23 009 112 ------------------------------------------------------------ RE: ERG owns 19.997% Card Etc AG. The 31.2 million dollar payment deferred but not lost. ------------------------------------------------------------ N.E. Renton "Understanding The Stock Exchange Chapter 823 page 157. ------------------------------------------------------------ 1) Where less than 20% of another company is owned, then the shareholding is treated as an investment and credit is taken only for the dividends actually received or receivable. ------------------------------------------------------------ 2) If between 20 and 50 percent is owned then "equity accounting" can be used, meaning that credit can be taken for all the profits, less the proportion belonging to the outside minority shareholders. (if any) ------------------------------------------------------------ 3) If more than 50% is owned, then the company becomes a subsidiary and this latter principle again applies: credit is taken for all the profits, less the proportion belonging to the outside minority shareholders. (if any) ------------------------------------------------------------ http://www.xrefer.com/entry/163281 ------------------------------------------------------------ equity accounting ------------------------------------------------------------ The practice of showing in a company's accounts a share of the undistributed profits of another company in which it holds a share of the equity (usually a share of between 20% and 50%). The share of profit shown by the equity-holding company is usually equal to its share of the equity in the other company. Although none of the profit may actually be paid over, the company has a right to this share of the undistributed profit. ------------------------------------------------------------ http://www.xrefer.com/entry/163281 ------------------------------------------------------------ equity accounting ------------------------------------------------------------The practice of showing in a company's accounts a share of the undistributed profits of another company in which it holds a share of the equity (usually a share of between 20% and 50%). The share of profit shown by the equity-holding company is usually equal to its share of the equity in the other company. Although none of the profit may actually be paid over, the company has a right to this share of the undistributed profit. ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Re: ERG owns 19.997% Card Etc AG--Equity accounted.Bank Licence | anonymous | 10:28:39 11/09/02 Sat |