Ann: Appendix 4C December 2016, page-122

What? No

I will try to answer what I think you want to know.

4c is the qtrly cash report (cash in the bank). What we saw in Jan was cash received from 1 oct to 31 dec period. The next 4c will be 1 jan to 31 march reported in april.

PG will be using Accrual accounting not cash when working out their numbers. So it will work like this:
sk2 china at the 31 Dec closes the month it spends the next 5 days creating a P&L and Balance sheet to report to HOffice. Head office gets reports from all countries and consolidates those to report more than likely to HOffice in PG.

The consolidated revenue in essence at sk2 HOffice will be required to report a royalty statement and pay OBJ 45 days after the close of the month being the 31 Dec. This is done every qtr and not only by SK2 but any brand that uses the IP.

The statement that OBJ recieves will have units sold and the royalty rate and the royalty calculated (possibly by SKU), less and expenses ie marketing fee. The subtotal is paid.

So on Feb 15 obj get the statement and the cash for Dec.