The 4C is receipts for sales made in a quarter (AFAIK) but does not actually represent the revenue earned in that quarter.
Here is my quick and dirty example to pen my thoughts
Customer signs for $1000 in q1, $1000 receipt is registered in the 4c, customer pays via finance, FCC fronts the $1000 to the bank account for BIG, BIG draws down the 'up front payment' into its revenue for q1.
q2, q3, and q4 BIG draws down the remaining revenue over time based on their contract.
AFAIK, even if a customer pays up front with no need for finance then the revenues still also realised over the space of the contract using deferred revenue.
That is my simplistic view. Maybe the accountants here have a better take on it.
- Forums
- ASX - By Stock
- BIG
- Ann: Trading Halt
Ann: Trading Halt, page-180
-
- There are more pages in this discussion • 525 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)