What Type Of Balance Sheet Does GBN.V Have?

The type of balance sheet GBN.V is using with no cash flow over four years but large liabilities to be settled at a future date is called an accrual balance sheet.

You need to account for the asset-liability mismatch and zero cash flow. Notable to the balance sheet is that assets and liabilities have been added together in past fiscal years. Any prepaid operational costs that were initially settled have also been carried on the balance sheet since commercial production was declared, but were actually initially settled in a prepaid fashion.

This is how you know that dore bars are being held in escrow as liabilities for future settlements, which are a cashless asset to be used in a payment-in-kind prepaid settlement. Any dore bars 'produced' out of the escrow account and used to prepay cash obligations carry all of the liabilities in accrual during the fiscal year. This also extends to production numbers which are subordinated, including grades and tonnages.

The entire operation is amortized to forward looking accruals on the balance sheet, including engineering reports and economic assessments which preceded production.

The following video demonstrates how accrual types of balance sheets can show zero cash flow and accrual of assets or liabilities.

http://youtu.be/sxEZajtRAdM

-F6