Providence Resources - Transocean Costs - Providence had fully covered the...

Spuddy, the accounting adjustment will be increase retained reserves and decrease accruals, with no impact on cash. The only sources of cash I can see in this, would be if Transocean had to pay for PVR legal costs already paid or if PVR were awarded damages. Cheers JR

Providence had fully covered the transocean costs in its accounts. Surely this ,eans that either cash was paid to Transocean or cash was set aside to cover the potential costs which were seen as current liabilities. So we have a figure of 18 or 19 million that has to be accounted for. You must cover it with something. If this was not the case how were the accounts for 2015 okeyed by Auditors. What would have happened if Providence lost the case. If the 19 million was not covered i.e. paid or cash set aside then surely providence should either have made this know to shareholders and or would have had to have sough additional loans. Thus I believe there must be some sort of cash return for the amount in question or a change in the balance sheet freeing up funds that had been tied down against this potential cost