10-28-2013, 03:37 AM
Refuting the Barons Article
In NQ’s 2011 20-F they classified all their level 2 as cash and cash equivalents and term deposits. Their issued bank information is with CiB. If you look on their website for time deposit and call deposit, it is consistent with NQ’s press release. Thus they are not investing in shady wealth management products
Also, in regards to their comment about NQ not notifying anyone of their change and shooting themselves in the foot, please find the below statement on their 2011 20-F
“aa) Recently issued accounting standards
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This results in common fair value measurement and disclosure requirements in US GAAP and International Financial Reporting Standards. Including which, the amendments clarify the FASB’s intent about the application of existing fair value measurement and disclosure requirements, such as the application of the highest and best use and valuation premise concepts being only relevant when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. The amendments also change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. This update is to be applied prospectively for public entities during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted.
The Group will adopt this amendment at the beginning of 2012 but expects no significant impact on the consolidated financial statements of the Group. ”
This seems to suggest that not only are using correct accounting procedure, but also did notify their intent to switch over their assets in accordance with the new law.
In NQ’s 2011 20-F they classified all their level 2 as cash and cash equivalents and term deposits. Their issued bank information is with CiB. If you look on their website for time deposit and call deposit, it is consistent with NQ’s press release. Thus they are not investing in shady wealth management products
Also, in regards to their comment about NQ not notifying anyone of their change and shooting themselves in the foot, please find the below statement on their 2011 20-F
“aa) Recently issued accounting standards
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This results in common fair value measurement and disclosure requirements in US GAAP and International Financial Reporting Standards. Including which, the amendments clarify the FASB’s intent about the application of existing fair value measurement and disclosure requirements, such as the application of the highest and best use and valuation premise concepts being only relevant when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. The amendments also change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. This update is to be applied prospectively for public entities during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted.
The Group will adopt this amendment at the beginning of 2012 but expects no significant impact on the consolidated financial statements of the Group. ”
This seems to suggest that not only are using correct accounting procedure, but also did notify their intent to switch over their assets in accordance with the new law.