Ruff deal at Rover
Poor old Rover. After a painful sickness, the old dog has finally been taken out and shot. But it seems this sad event could mean we will see the appearance of a new form of money.
TS was intrigued to read that a fund set up by Rover’s directors to help worker’s families in the event of collapse would include ‘collateralised cash’. Not a term we’d come across before, so TS stepped out of the pub, picked up the old dog and bone and called some accounting chums.
Unfortunately, similar bafflement was abound. ‘It’s a new one on me I’m afraid,’ said one ICAEW accounting guru. One Big Four partner explained: ‘It’s obviously a buzzword of the moment. Soon everybody will be using it even though no-one knows what it means.’
However, after much research (well browsing the internet), TS finally managed to uncover what this strange term means.
‘Collateralised cash’ is cash placed in ‘escrow-type’ accounts where it could be claimed by collaborators that lost money if the car maker was forced to cease trading. Bet you’re glad you know that now.