I don't believe you are correct. This is my understanding. *A...

I don't believe you are correct. This is my understanding.

*A customer signs an agreement to become a customer of BIG
*BIG is forwarded 35% for working capital, 41% held as security until customer confirms, 24% commission to FCC
*The amounts received are considered as deferred revenue, the commission is expensed
*BIG shoots the video/s
*Customer makes a purchasing decision

2 paths
*Decides to proceed and confirms the arrangement to pay the money back through FCC at no interest
OR
*Decides not to proceed with the purchase and cancels the agreement they signed above at no penalty
*BIG looks for another customer or has to repay FCC if no customer found within 120 days.

It is not immediately obvious to me how this is improper. To date they have never not found a customer to replace the customer who decided not to proceed with FCC. I would very much welcome references to accounting standards that support your claim that something improper has taken place.

The reason you can't understand why they are using FCC might be because you don't understand the business model. It has been discussed elsewhere on the forum if you're interested in have a look for the information.