Yes, you are correct with all of your numbers and refering the the Annexure E from 2014. The auditors, it seems, have insisted to use the 0.105 until the performance rights are actually approved, so that is how they got to the $3.54m. Note also that the amount in the FY17 result must also include an amount for the Tranche 3.
So, if the rights are approved prior to 28 November 2017, there will be a write-back in the accounts (assuming the share price is less than .105) in H1FY18. If the share price is about 5c, we could see a write-back of around $2m. It depends on how much has been provided for in Tranche 3.
Accounting wise, they are doing the right thing. It is transparent and will be clearer in the actual full year report and financials (not the 4E that we have been provided with yesterday)
As far as paying the performance rights for Tranche 1 and Tranche 2, I have no real reason to argue against this.
OBJ Price at posting:
4.6¢ Sentiment: Hold Disclosure: Held
(20min delay)