Sino Agro Food Inc (fka SIAF)

[RealDutch]

It's about the percentage-of-completion method SIAF used to account for revenues. It's about the fish farms and consultancy.

The first one (Madsen) relates to the first fish farms built in 2011 (3 contracts). And the 2nd one to the Mega Farm in 2014.

SIAF booked some revenues early on IIRC. Either due to the license fees, or the design work performed. My guess is, the latter one. The HK auditor expressed some concerns whether the revenues had been accounted for properly which Madsen did not act upon. And, Anthony Kam didn't check either for the years 2012, 2013 and 2014.

That's what this is about. I mean, they did build the fish farms. Nowhere does it say that SIAF committed fraud. Just that the auditors didn't do their job properly.

I never saw a problem with the way SIAF booked the revenues. Because I believe that the design work is a significant part of the total project cost. You could even argue that SIAF should have booked the license fees early on. But I know they didn't do that (for the MegaFarm at least).