I would like to draw on your knowledge of the Accounting Standards, as mentioned in your post before this one.
Do you think the changes (as outlined below, from their own reports) will have any impact on how GSW recognise revenue going forward?
View attachment 1217608
This is especially around AASB 15 in regards to Revenue from Contracts.
We all know how GSW contracts work. It's on a pay per use basis, with no set contract value. Clients can stop using the platform at any time, without any financial loss or obligations.
Here is how GSW say they recognise revenue,
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I'm sure it's all above board, and I'm not alleging or implying they are doing anything illegal.
I just can't justify how they recognise their revenue the way they do. The figures just don't add up.
I have covered this previously in a post I made on 1/2/18 (#30745648, it's about 55 pages ago (my link copying skills are no good either)) after I had done a stack of research during the suspension.
The cashflow received is miles behind the revenue they have reported (especially when revenue from smaller customers is only added when the cash is received (see screenshot 2).
Here are the figures. GSW listed in Dec2016.
Quarter -------------- Revenue ----------------Cash receipts from Customers
Dec16........................$62,850........................$15k (for the 3 weeks listed)
Mar17........................$117,138........................$54k
Jun17.........................$152,682......................$128k
Sep17.........................$255,073......................$175k
Dec17.........................$321,014......................$160k
Mar18........................$363,980.....................$250k
Jun18........................$403,828......................$241k
Totals........................$1,676,565...................$1,023,000
No wonder they only mention revenue on the front page of their updates!
The Revenue figures they mention (not cash receipts) in these quarterly reports also don't match out to their 6 monthly reports.
In their 30/6/17 Annual Report they state Revenue from Ordinary Activities of $336,356. Below, but not by much, the Revenue numbers they have published in their Quarterlies.
It gets better though.
In their 31/12/17 Half Yearly Report they stated Revenue from Ordinary Activities was $328,696.
If you add up the Revenue figures (not cash receipts) from their Quarterlies I get $576,087. All of a sudden they seem to be overstated by approx $250k for the Half.
This simply tells me the Revenue numbers they report in their Quarterlies can't really be relied upon, and that the Cash Receipts from customers are far from special.
Your thoughts on all of this?
(I realise it's currently more than cash backed, pending outcomes of class actions. It's anyone guess whether those big contracts previously mentioned are still in play or not. They haven't said a word about CBA since they upset them. Not a word in months about those other big contracts).
