{
  "docId": "019dd923-622c-750b-8b96-6d03b12e1d18",
  "docSlug": "cfe5ee328183",
  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-04-21 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 17,
  "pageCount": 62,
  "prevPage": 16,
  "nextPage": 18,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 14,
  "notes": "The slide highlights a potential accounting error or manipulation regarding gross vs. net reporting of borrowings.",
  "elementsJson": [
    "paragraph",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-6d03b12e1d18/17",
  "deckHref": "/decks/019dd923-622c-750b-8b96-6d03b12e1d18",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-6d03b12e1d18.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-6d03b12e1d18#slide-17",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Ströer's year-end cash flow statements wrongly show that Ströer had no borrowings during the year. In fact, Ströer draws down tens of millions euro on its credit facility each of the first three quarters of the year, which it then repays before the end of the quarter.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3e-76f7-b9e0-09efaa892d5c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Cash received from borrowings: 46.1",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3e-76f7-b9e0-103cd181843e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.764,
        "x": 0.118,
        "y": 0.112
      },
      "kind": "paragraph",
      "text": "Ströer’s year-end cash flow statements wrongly show that Ströer had no borrowings during the year. In fact, Ströer draws down tens of millions euro on its credit facility each of the first three quarters of the year, which it then repays before the end of the quarter.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "36f7ef30-f9b5-4186-95d5-a3efbf65402e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.764,
        "x": 0.118,
        "y": 0.232
      },
      "kind": "paragraph",
      "text": "In our opinion, Ströer’s auditor has committed a clear error. IFRS is clear that Ströer’s borrowing activity should be shown gross. Even though we have had front row seats to some of the most spectacular auditor failures of this decade, we are still stunned that Ernst & Young has overlooked this basic and obvious problem in Ströer’s cash flow.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3f29e079-198b-46a9-8bfc-45a64d5449ea",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.035,
        "w": 0.764,
        "x": 0.118,
        "y": 0.625
      },
      "kind": "paragraph",
      "text": "When we review reported cash flows in Ströer’s 2015 Annual Report (p. 85), however, there was no indication of cash received from borrowings.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "feb0d1b6-87dc-4010-8b92-0bb181941156",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "In our opinion, Ströer's auditor has committed a clear error. IFRS is clear that Ströer's borrowing activity should be shown gross. Even though we have had front row seats to some of the most spectacular auditor failures of this decade, we are still stunned that Ernst & Young has overlooked this basic and obvious problem in Ströer's cash flow.",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-3f3e-76f7-b9e0-0fd85f100a89",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.764,
        "x": 0.118,
        "y": 0.865
      },
      "kind": "source-note",
      "text": "21 See IFRS 7.23(a). Examples of cash receipts and payments referred to in paragraph 22(a) are: (a) the acceptance and repayment of demand deposits of a bank; (b) funds held for customers by an investment entity; and (c) rents collected on behalf of, and paid over to, the owners of properties.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "22f38e6a-8173-455b-8a85-cee2ff40585d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.135,
        "w": 0.764,
        "x": 0.118,
        "y": 0.695
      },
      "kind": "table",
      "text": "Table showing annual cash flows from financing activities for 2014 and 2015.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "230addbd-a3ca-42ad-a7e7-9e99c7eb711b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.135,
        "w": 0.764,
        "x": 0.118,
        "y": 0.435
      },
      "kind": "table",
      "text": "Table showing quarterly cash flows from financing activities for 2015.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "735085a2-dda4-4b67-90c9-871d25eef9d9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.025,
        "w": 0.764,
        "x": 0.118,
        "y": 0.391
      },
      "kind": "title",
      "text": "Quarterly and Annual Cash Received from Borrowings",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1ca413cb-f1f7-4ab5-90e4-859785dc419c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "cb30a7f8-4aee-42c2-b286-845fea94e9d3",
      "evidence": "The slide explicitly accuses the company of misreporting financial data to hide borrowing activity.",
      "confidence": 0.95
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 3,
      "beatId": "b3f52913-eba1-4212-8b6a-c784e421d7c9",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "Multiple sections expose contradictions in Ströer's financial reporting and governance.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}