{
  "docId": "019dd923-622c-750b-8b96-a79a828f1e2b",
  "docSlug": "be28a8f1faf0",
  "documentTitle": "IQE plc (IQE)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-02-08 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 16,
  "pageCount": 17,
  "prevPage": 15,
  "nextPage": 17,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 24,
  "notes": "The slide uses a line chart to show the spike and two side-by-side cash flow statement snippets to demonstrate the change in reporting granularity.",
  "elementsJson": [
    "headline_text",
    "line_chart",
    "paragraph",
    "data_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-a79a828f1e2b/16",
  "deckHref": "/decks/019dd923-622c-750b-8b96-a79a828f1e2b",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-a79a828f1e2b.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-a79a828f1e2b#slide-16",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "By removing a separate line item labelled “capitalized development expenditure” in its 1H 2017 interim report, IQE has made it impossible for investors to determine the amount of costs capitalized in that period.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86f9-5ba2dce8f804",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.3,
        "w": 0.72,
        "x": 0.14,
        "y": 0.11
      },
      "kind": "chart",
      "text": "Suspicious Spike in \"Investments\"",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ecfd5df1-fd4b-4bdc-aa55-a5ba21a9fe16",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "investments in intangibles: £9.6 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b61-7647-86f9-5d20bbc6cb92",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.44
      },
      "kind": "paragraph",
      "text": "IQE simultaneously became more opaque in its disclosures about these investments, strongly implying that the increase is difficult to justify.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "07c9c1a1-71dd-43a5-ba74-f1b1a2d8be6a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.83
      },
      "kind": "paragraph",
      "text": "We think this accounting treatment is problematic. By removing a separate line item labelled “capitalized development expenditure” in its 1H 2017 interim report, IQE has made it impossible for investors to determine the amount of costs capitalized in that period.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5c14734d-f34f-4b88-83f0-4542a058189b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.24,
        "x": 0.38,
        "y": 0.8
      },
      "kind": "source-note",
      "text": "Source: IQE Company Filings",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "25211012-14c7-4d89-97cd-3e7d65bca438",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.78,
        "x": 0.11,
        "y": 0.61
      },
      "kind": "table",
      "text": "Comparison of 2017 vs 2016 cash flow statement line items",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "cbafa9e9-fea9-4afa-a29e-25f360cda3f4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.45,
        "x": 0.11,
        "y": 0.08
      },
      "kind": "title",
      "text": "IQE's investments in intangibles spiked in 1H 2017:",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "17ca0e5c-9de6-4328-af01-4f62a3b6fcc1",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "d1690792-99a3-4f17-a9f0-6a09cc120354",
      "evidence": "The slide explicitly calls out 'suspicious' spikes and 'opaque' disclosures to suggest accounting manipulation.",
      "confidence": 0.95
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}