Something to be taken from SGH's accounts today that's applicable to Shine long term. It relates to new accounting standards coming in 1 Jan 2018 AASB 15.
Slaters have done something quite smart/sneaky by pushing these changes in early to get ASIC off their backs. (Apparently ASIC approved the new books not the old ones)
According to SGH these impact on how WIP will be recorded and are stricter on the criteria for the amount recorded. This has the impact of reducing the amount of WIP on the income statement because you can only record revenue when it is "highly probable" that the revenue will be collected. The current standard only requires that it be "probable".
Shine will also need to implement this ome time between now and early 2018. Of course It's a paper adjustment only, and it wont impact the actual cash received and Operating Cash Flow. I checked and Shine does reference it in their report and said it "will not have a material impact on the group".
But its something to keep in mind.
SHJ Price at posting:
69.5¢ Sentiment: Buy Disclosure: Held
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