you seem to suggest that a company would have the right to declare when they received receipt of monies. They either received the cash in the quarter or did not.
The 4c is a cashflow statement to reconcile to their cash position at the end of March. If they received cash from Boost pre sales in March it will form part of the 4c irrespective of whether it would be classified as revenue for a statutory income statement purposes.
People seem confused with the difference between revenue and receipt. If you have receipted cash from Boost pre sales on 30 March you would have to include same in your 4c. If the company chose to record the receipt of same in April when the product is dispatched they would be misstating their 4c as the cash balance would be incorrect.
the 4c essentially is:
opening cash balance
Receipts +
Payments -
closing cash balance
If you omit receipt of Boost pre sales pre 31 March, you get an incorrect closing cash balance. You cannot be selective as to when you receipted the monies or not. If pre sale receipts pre 31 march were received by the company in a bank account controlled by them then it goes in as a receipt. This is NOT saying it would be classed as revenue if they had to produce a statutory financial report for the quarter to 31 March. I have already stated my belief that such receipts would be an unearned liability to the company until dispatch.
I think what I have said is self explanatory and if not there is no other way for me to put it. I dont need clarification from anyone even the company as I understand the difference between receiving cash and revenue recognition.
NUH Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
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