The key for revenue is customer acceptances. That exists now to...

The key for revenue is customer acceptances. That exists now to be able to start amortising the deferred revenue liability over 12 months and will do under aasb 15 to reclassify the full amount of the deferred revenue to revenue on the day of acceptance. (See my fear in 3rd paragraph-hopefully unfounded -on current revenue treatment at jun 2017 financial report)

With expenses there would be an argument to capitalise expenses and amortise over subscription period IF revenue is amortised rather than being taken up front. They are not doing that at present and call out they are being conservative in this treatment. The unsuccessful videos should be expensed immediately though.

My main fear is that the revenue in the jun 2017 financial year was recognised over 12 months before acceptance - ie they got a cash receipt from Fcc and started amortising to revenue regardlessof customer acceptance and then come out and say we’d just swap another customer in so we’d no reason to believe we would have to return the money as we hadn’t paid any cancellation fees to date so we thought we were ok to amortise the deferred revenue liability to revenue (obviously they wouldn’t have to pay back the funds until the sponsorship pool has been drawn down which it only was by end of dec 17) I’d like me to think they wouldn’t have been a that dodgy and this wasn’t why they switched auditors From pkf to an unknown auditor at the other side of the country. Surely even Rothesay wouldn’t have signed that off. If they try and mask that under revenue restatement due to Aasb 15 Then say hello to my friend mr class action.