Ok on trading licences in the 4th letter, let me see if i have this right
X contracts Y to go and set up a trading platform. To do so, Y buys an off the shelf product from Z (say for 90) and puts a few tweaks on it. Z puts the customer name down as X (not Y) and X pays Y 100 for the work, such that Y makes a gross profit of 10. Z hands the keys to X not Y.
Y signs a 6 months contract in april, books the revenue all in june, and collects the cash in november and december, and is still around today .
Y gets the work done before June and X signs a certificate of practical completion saying it the work was done in june and the scope was real and fulfilled
GT the auditor gets copy of contract, invoices, customer certificate, books a receivable at 30 June and that converts to cash receipts 31 Dec.
GT the auditor probably books revenue consistent with practical completion and as X says "it got done by 30 June" then it is H1 revenue
Y is asked by ASX to reconcile that they really did get the cash and if there really were certificates of practical completion
Assuming this is right, therefore Y should have booked the gross profit as revenue not the revenue as revenue becuase the revenue was really just pass through given the title of the software platform was never in their name ?
I think they should book the 10 not the 100 are revenue
@aniesbaswedan is this waht you were getting at ?