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This portion is captured as accrued revenue.

@SLewis

Yes, it does seem reasonable to me (even though it is not explicitly stated) that the Accrued Revenue reported under Contract Assets refers to Volume Incentives that have already been earned, but not received.

There is an important additional aspect we haven’t discussed yet, though, which is that a large portion of the “Trade and other payables” reported under Current Liabilities must be related to the services and products against which Client Cash is being held.

If you look at its definition (page 59 of the FY19 AR), Client Cash “represents amounts from customers held before release to service and product suppliers”; therefore, if Client Cash as of December 2019 was 651m$ and “Trade and other payables” as of the same date was 1,269m$, it means that 651m$ of that 1,269m$ is supposed to be serviced from Client Cash.

In other words, while Client Cash cannot be used for general purposes, one then needs to subtract from Current Liabilities the payables it is supposed to service.

So, if we assume the following:

Current Assets

General Cash: 187m$

Financial Investments: 100m$

Trade Receivables: 586m$

Contract Assets: 64m$ (ignoring Volume Incentive receivables and assuming a similar proportion of accrued revenue as per FY19)

Current Tax Receivables: 19m$

Other Current Assets: 80m$

Derivatives: 4m$

Total Current Assets (Ex Client Cash): 1,040m$

Current Liabilities

Trade and other payables (net of Client Cash): 1,269m$-651m$ = 618m$

Deferred Revenue: 57m$

Contingent Consideration: 4m$

Lease Liability: 138m$

Borrowings: 65m$

Provisions: 68m$ (note that these are not necessarily going to become calls on cash)

Tax liabilities: 6m$

Derivatives: 5m$

Total Current Liabilities (net of Client Cash): 961m$

We have that Client Cash cancels out on both sides, and the actual Current Ratio then becomes 1,040m$/961m$ = 108%.