Yes, this is right - my reading of the new standard is that the timing of revenue recognition for GSW will not change from the current method. They are already recognising when the service obligations are performed - not an estimate of deliveries, so this wont change.
What may change is the recognition of volume based discounts - which reduce the contract rate in a tiered discount structure, discussed by Bane in the Insidemarket interview.
I think they are recognising this discount the same, but, if, for example, they are not recognising the discount when booking the monthly revenue, they will need to start doing it under the new standard.
This may be the variance between cash receipts and revenue recognised. It also may be the R&D tax incentive, which, I said in a earlier post, is received circa 12-15 months later.
I wouldn't worry too much about this - PWC would be all over it & one of the first things reviewed in the audit.
dim81
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