Laurence Freedman... Should the heat be on him?, page-21

What RS failed to tell you Reg was that they weren't expecting payment for the $14mil in sales revenue declared in 2019 for 12 months or more.

This is another example of their misleading contraditctions ...

In the End of Year Accounts 2019 they stated this -

"Current trade receivables (except China) are generally on 30–60 day terms. Chinese entities have general trading terms between 60-150 days."

This was obviously misleading because ...

Five months later in the Preliminary Half Year Accounts 2020 they stated this -

"In the second half of FY19, the group entered into several long term contracts with Chinese Government agencies which provided for longer payment terms based on back ended periodic payments and performance milestones. This strategic decision had the one-time effect of growing working capital in the current year. The group expects to secure the majority of current receivables in late FY20/ early FY21."

There was no hint that there were any issues even though this report was issued in August 2020.

There is also an issue with booking in $14mil of sales if payment of those sales is not enforcable at balance date due to an agreement to "periodic payments and performance milestones". Accounting Standard AASB 15 (which they quote in their report) regarding how and when revenue should be recognised in the accounts may not have been applied here.