11.2 CASE STUDY It is often difficult, ifnot impossible, to distinguish operating efficiencies from changes in reported results brought about by accounting rule changes, as the following article demonstrates. Results blamed on accounting by Duncan Hughes Argo Investments managing director Rob Patterson claims "nonsensical newaccounting changes have distorted the $3.1 billion fund's annual performance and he is backing industry moves for changes. Mr Patterson, who joined the fund 39 years ago, was speaking after the fund announced a full-year loss of $64.4 million for the 12 months to June 30 compared with a profit of $294 million in the corresponding period. He said: "The results were thrown around by the new international accounting standards. We believe they do not account for long-term investments in equity securities where our profits come from collecting income." The Australian Listed Investment Companies Association and individual companies are lobbying local accounting governing bodies to have the Accounting Standard 139 amended to better reflect their underlying performance. ARGO INVESTMENTS LIMITED 2008 2009 Full year 196.1 174.8 Pretax ($m) 294.1 -64,4 Net ($m) 52.0c 11.1c EPS 30c ff 27c ff Final div $6.63 (+30c) Shares (las) The fund outperformed the benchmark 10ayear result of the All Ordinaries Accumulation index with 8.8 per cent annualised capital growth to 7.3 per cent. Over 12 months, the fund was down 16.8 per cent compared with the benchmark's 22.1 per cent