2020 Annual report released today has a statement on the bottom...

2020 Annual report released today has a statement on the bottom of page 39.

“On 11 June 2020, the Group announced that it was pursuing Decmil Australia Pty Ltd in relation to amounts it considers entitled pursuant to a contract for electrical services in which the Group had demobilised from site by the end of November 2018. In accordance with its accounting policies, the Group has previously recognised revenue in relation to this contract, applying constraint. The amount is included within contract assets.”

This confirms earlier conclusion in this thread that the Decmil claim has already been recognised in revenue.

Whatever “applying constraint” means is something Dunn MD doesn’t want to elaborate on.

How he plans to write off this “revenue” when the time comes, remains a mystery to me, since there appears to be no provision for it, despite his statement in June that the matter will not “ have a material impact on the financial performance of the company for the year ending 30 June 2020 or any subsequent financial years”.

Does anyone have any bright insight to offer?