A leading commentator on cooperatives is seeking documents under the Official Information Act as to why Fonterra hasn't had to supply like-for-like comparison figures with its Jan 31 half-year end report. Christchurch-based Alan Robb believes publishing such figures is part of its obligation to both shareholders and bondholders as a company listed on NZX's debt market reports Rural News. What's more, the cooperative's rising debt and slim margin mean the release of that data is more than a matter of principle. "˜To know how things are going part way through the year is very significant. If the financial situation has changed, then the risk has changed, for financial debt holders and shareholders.' Robb was quick to criticise Fonterra's use of figures from the previous half-year end, November 30, 2007, as comparisons in its March 24 announcement of its financial position at January 31, 2009. He believes under NZX rules those comparisons should have been recalculated for the six months ending Jan 31 2008, and wants to know why NZX hasn't required Fonterra to provide such data. He also wants to know why NZX's regulator, the Securities Commission, has decided not to do anything to ensure NZX enforces its rules on this matter. "˜I've asked under the Official Information Act for the release of the reasons behind the Securities Commission's decision not to do anything.' The Securities Commission confirmed to Dairy News that "˜it will not be taking any action in regards to this matter.' However, it would not comment why. Fonterra maintains it has met NZX and Financial Reporting Act requirements, which in turn require compliance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). Yet in its press release accompanying the year end figures it acknowledged the limited use of the comparison data. "˜The latest half year covers the period August 2008 to January 2009 and includes two additional high production months (December and January), distorting comparisons with the previous half year which went from June 2007 to November 2007,' it stated.
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