Apologies Ferg, good to know we are on the same page. The float is the ORA (refundable portion, as found under liability section of balance sheet) + DMF.
I took your statement out of context.
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So we have Godwin's law & Benford's law.....here is Ferg's law: "the level of comprehension on a subject is inversely related to the number of words and posts thereon".
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No it should be the full amount paid by the resident upon paying for the license to occupy. That is under the liability section of the balance sheet, both the refundable ORA and DMF.
DMF is paid all in advance, and is found in the income statement as the resident exits.
can OCA lose the float
Cupsy your maths is correct. In your hypothetical example what is cashed out at 50c today can be cashed out at 97c in seven years time. When I say 50c is still 50c I am talking about the exchange rate between dollars operating inside the company and dollars you can cash out. So in this particular example:
a/ You can cash out your $1 of value in the OCA company today by selling your OCA shares, giving you cash in your pocket of 50c OR
b/ You can cash out your $1.94 of value in the company in seven years time and get 97c in your pocket
The thing that has not changed across time is the expected 'exchange conversion rate'. For any $1 inside OCA today, or in seven years time, or at any time in between, or at any time after seven years: Each $1 you take out of your investment in OCA by 'selling your shares' will turn into 50c in your pocket, as long as OCA remains a listed entity. $1.40 of net tangible assets within the OCA company becomes 70c when you sell a single share on the market today (there is that 'exchange rate' again - 50c in the dollar). That is the extension of what Lyall Taylor was telling us in his article.
SNOOPY
In accounting, float has a very definite meaning.
Whatever it is you are all disagreeing over.
It is NOT float.
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Image from here
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