John Lawrence, TT’s occasional economics and finance blogger has broken ranks with other commentators and opted to read Forestry Tasmania’s financial statement before passing comment. On Monday TT will publish the first in a two part series titled ‘Accounting for Dummies’. The first part will cover FT, and the second part the much anticipated Gunns’ financial statements.

The first part covering FT will reveal an operating loss of $5 million after allowing for the cost of trees sold, a flat level of sales, net cash flows from operations of only $3 million which is insufficient to cover new plantings and the capital costs of new logging roads, an increase in amounts owing from customers as cash flow problems in the forest industry spread, a greater reliance on CFA grants and a change in the methodology for pricing standing timber which has led to a fortuitous increase in its value of $61 million.

Earlier on TT, definitive Jarvis Cocker:
Forestry profit: even the ABC fell for it
Someone’s trying to pull the wool over our eyes