Mel, I think escrow may be related to receivables. The figure...

Mel, I think escrow may be related to receivables. The figure has changed dramatically three times. First in the PSD acquistion document, second in the FY15 provisional accounting for acquistion report and finally in the FY16 finalised PSD assets acquired value. All of those values are backdated to the point of acquistion yet differ greatly between the finalised FY16 and PSD acquistion document.

Could it be PSD booked revenues and therefore recievables that were never going to be collected as the invoice was in dispute? I can't think of any other reason why the figures would differ so greatly and might explain a warranty.

'We warrant the performance of assets purchased, in this case recievables are valued as per the acquistion document'

By FY16 it became evident a perecentage of those receivables were not going to be recovered despite every effort to do so from SGH. Therefore that triggers warranty and would explain the timing of notice to Watchstone soon after FY16 report.

My guess work, for a long while I have wondered about receivables. It is one item due diligence would have to take at face value - checking each invoice would be impractical time consuming and costly to do prior to acquistion.