Barron's Follows-Up On LDK Solar (LDK)

In this week's Barron's, it did a follow-up on troubled LDK Solar (NYSE: LDK). It noted that in LDK Solar's most recent quarter, the balance sheet showed $30 million of "inventories to be processed beyond one year" -- a strange long-term asset that seems to validate LDK's former controller, who quit in September complaining that the Xinyu City, China, company refused to write off silicon inventory that was unusable.

Barron's tried to ask LDK Solar why it thinks some of its inventories will be processed after 12 months, but LDK didn't answer any of Barron's inquiries.

This is what Barrons said, "we searched all filings at the Securities and Exchange Commission since 2006 to see how companies treated inventories they didn't expect to sell within a year. Whether Tantalum or pine forests, natural gas or jewelry, pharmaceuticals or silver, all but a handful took reserves against the inventory's value. If LDK wrote off its $30 million in noncurrent inventory, two-thirds of its reported profits for December would vanish."

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