SGH have in fact taken a far more conservative approach to wip. It is not at the whim of the cfo as you suggest but a point of revenue recognition based on historical data and extremely high likelihood of cash recovery. The payment delay is merely due to TPI s playing a game, something the UK MOJ portal has only partially fixed. SGH recognition point has been detrimental to the net profit position but will reduce the time of revenue to cash recovery . For example QPP recognised full revenue when the liability was confirmed, SGH is recognising it after liability is established, after rehab is complete and ultimately further down the track.
Your Boeing example is also slightly misleading. It is true that Boeing recognised revenue at the time of delivery for aircraft sales (program accounting), but they also use an accural accounting for their leasing division. At lease inception, they record an asset (“net investment”) representing the aggregate future earnings.
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