There are lots of assets on the balance sheets that do not show up on the income statements initially, or ever, like shareholder loans that don't get paid back. Some show up in later years, like depreciation.
Unrealized capital and investment gains or losses on an investment are these notional values we are talking about. They are an asset that accountants must struggle to value, because the asset shown on the books at a lower value, is becoming a higher priced asset thanks to hedging, and accountants are attempting to show this appreciation. Same thing happens with the pension funds that everyone is talking about,... depending on whether their investment income is a gain or a loss, and they have enough funds to meet their liability to the pensioners,...these are off balance sheet items too, and are much more worrisome to many American companies than Barrick's hedgebook should be to shareholders.
Actually the millions of oz of borrowed gold show up as both an asset, and a liability. Read the notes to the financial statements. They tell you how they value reserves (unmined ore) on the balance sheet. Then the notional appreciation or depreciation depending on the POG and the investment income must be accounted for. Finally the liability for the borrowed oz show up in liabilities.
At least you are asking some questions tyke,...give you credit for that,...it's a discussion instead of a sermon against the evil destroyer of the POG. |
