Answer to your question is in the example above.

Then how come my cimb itrade no update the bonus share even 3 days after the ex-date already... think might need to call them to clarify... anyway thanks for answer....

After ex-date, normally they need some time to credit the bonus issue into individual CDS account I think.

Hi there! Can anyone explain to me what a Call warrant is? I realise that company warrant or right issues have time limit, but why isn't there a time limit for Call warrant? And what is a Put warrant?

If I buy a Call warrant, can I sell it immediately just like normal shares? Or is there any rule to follow?

Thank you.

Think this one had been answered for a few times liao, try search for it.

Yes, you can. Just like normal rules & regulation that encompass share trading, but some securities company required signing of extra document for you to undertake the higher risk of CW trading.

Could anyone please explain the following accounts? What are the differences between, say allowance for doubtful debts and doubtful debts written off?

Allowance for Doubtful Debts
Allowance for Doubtful Debts No Longer Required
Doubtful Debts Written Off
Doubtful Debts Recovered
Allowance for Obsolete Inventories
Allowance for Obsolete Inventories No Longer Required
Allowance for Inventories Written Off
Allowance for Inventories Written Off No Longer Required

i have some questions on warrants

ok i know it has been asked for a few times, i've searched it, but just to confirm first

1. example:
stock AAA RM5.00
warrant AAA-CA RM0.19
conversion ratio: 10:1
conversion price: RM3.00
maturity date: next monday

so if i buy 1000 warrants of AAA-CA worth RM190.00, on monday i will have an option to buy 100 units of AAA at RM300
correct?
(if i'm not correct, pls correct me)

ok if that is the case, what happens on monday? at what time will i have the option to buy that 100 units of AAA stock? anytime of the day? or after 5:00pm (which means the next trading day)? how will i be approached to buy that stock at that special price? because currently i do all my trading online

thanks in advance!

For CA, you normally don't get stocks, instead you got money based on the formula pre-determined, normally average price of 5 days prior to the maturity date or so.
If the average price is RM5, then you should be getting RM200 back if I correct on my calculation.

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Added on January 7, 2011, 11:42 amYour question maybe can find the answer by googling... but if have to type the answer out then that take some pains...
e.g. allowance for doubtful debt is allocation reserved for a portion of debtors to turn into default, no cash going out, the doubtful debtors have to be pre-determine by a measurable means e.g. suspicious, bad credit record, or by % etc.
I try to answer one already very sick & tired... some more no marks will be awarded...

This post has been edited by htt: Jan 7 2011, 11:42 AM

Thanks for your efforts.

I've actually asked my girlfriend (ACCA) the same questions but I'm not satisfied with her answers.

The following two sound the same to me.

Allowance for Doubtful Debts
Doubtful Debts Written Off

Both will be treated as expenses. I'd like to know why not write off the doubtful debts instead of making an allowance for it.

I did google but I'm confused with the terms used in the report. For example,

Is "Allowance for Doubtful Debts No Longer Required" a write-back?

Haiz. I really wish I did finance & accounting for my degree. I've done cfa 2 but I lack analysis practice.

All CWs in KLSE currently are cash settled.
You won't able to buy AAA stock with a -CA

Issuing bank will cash settled with weighted market average price, aka normally they take the average closing price 5 or 10 days (check the condition of the CA when listing time, can be varied) before the warrant expired at the final settlement price, and compared how much value left for the CA then return the money to you, (if there is )

Ok, your gf graduated or still student? A bit OT...

Allowance for Doubtful Debts - that is amount reserved for the event of doubtful debtor turn into default, normally that's not full amount but a certain percentage which deems reasonable for the business; but the default event has not taken place yet, so the allowance impact your income statement but cannot be deducted from taxable income.

Doubtful Debts Written Off - that means that specific debtor actually default the debt and you cannot recover back amount (if recover back part of it, then you have to expense the unrecoverable part only), then you really deduct the amount from your asset and written off the amount from book. The amount can be deducted from your taxable income, but if subsequent reversal happened, you must put it back.

ok for my example, if i take the average closing price as RM5.00, how much is my return?

if settlement price is RM5.00, then you value of CW is Rm5.00-Rm3.00 = RM2.00 / 10 (ratio) Rm0.20.

Issuing bank will return Rm0.20 per warrant to you. (they will deduct out some minor processing fee, it is minimal only so normally being excluded in calculation for simple illustration)

You bought Rm0.19, so gain is Rm0.01 (excluded the processing fee)

Is this applied to both company and call warrants? Or just company warrants?

I have another question... In what situation can a financial report has higher Profit than its Revenue?

For example, the Revenue is only 15mil ringgit but the Profit is 77mil ringgit. Is this something to do with "PROFESSIONAL VALUATION OF THE GROUP'S INVESTMENT PROPERTIES"? If yes, then what does this mean?

Thank you.

I suppose the calculation only applies to call warrants.

Return of call warrants per share = [(settlement price - exercise price) / exercise ratio * exchange rate] - entry price

Return of company warrants per share = mother price - exercise price - entry price * exercise ratio

I just realized call warrants calculation is different. I had been giving the wrong information to my friends.

It just mean company revalue its asset.

Just like you bought a house Rm100K 10 years ago, now it worth 1 mil, after being revalued at current valuation, your account book will show 900k profit.
You don't do any sales but register 900K profit already.

Another situation profit can higher than revenue is
The company hold large chunck of share on other company, like Bkawan hold KLK for 48%. Under accounting term, it is classified as associated company.
The associated company profit is brought into the parent company account according to the ratio.

Gross profit = Operating profit of its own company + associated company profit + minority interest.

Only, operating profit is come from its own revenue.

You need to separate out what kind of profit. As in the headline, the company only report gross profit or pre-tax profit figure, which included all aspect of profit in the first place.


It is still basically the same principal, just in ordinary warrant, it will be converted to the mothershare as vs cash settled in CW.
You still need to take in the cost your bought for your warrant, as warrant ceased after you converted, or settled time.

Thanks for the explanations!

My new questions:

1) If a company is giving out free bonus shares and free warrants, the amount of warrants I would receive is based on my current shares? Or my current shares + bonus shares?

2) If I sell my shares after the EX-date of the bonus issues, then will I still get my bonus shares in a specified date later? Or do I need to hold all my shares till the lodgement date of my bonus shares?

This post has been edited by t5t: Jan 8 2011, 11:08 PM

1) It depended on the company proposal in the first place, can be both way, but mostly based on current shares. The proposal can be stated warrant given after bonus share as well.
So study clearly on the company proposal.

2) Yes. Don't need hold after lodgement date.

Hi!

If a company has profit after tax of RM11.5mil and net profit for the period of RM20mil. How can it have higher net profit than the profit after tax? Where does the RM8.5mil come from? For example, refer to SAAG 3rd quarter financial report.

Could be from disposal of asset?