Will PME revenue be affected like TNE due to change in Accounting standards ?, page-2

"As both are Australian based SaaS companies, should PME revenue accounting be affected by the change in Accounting standards like it has for another SaaS company TNE ? "

That's a good question. Perhaps you should ask the company directly. They ought to know the answer.

From what PME have said about their business, particularly in the US, I get the impression that their business there is pretty much pay for service at every step in the service delivery
They get paid to install their system.
Then they get paid per view as it is used, with guaranteed minimums.
That doesn't sound like it would involve a lot of upfront payment for services that have not yet been provided, although I appreciate it is possible that such transactions could involve some degree of upfront payment.

However, more generally, I also have the impression that PME are inclined to under-promise and over-deliver, so one hopes that the idea of recognising revenue that they have not yet earned or secured might be a little foreign to them but I suppose they follow whatever the accounting rules allow.. A little while ago, There was some discussion of a $4.1m debt that was still outstanding, but as I understand it, that debt was collected.

Here is what Sam Hupert said in the open briefing dated 21/2/2019. (my emphasis)

"openbriefing.comThe notes to the 31 December 2018 accounts refer to the impact of newaccounting rules, namely AASB 15. Can you explain how this impacts revenuerecognition for Pro Medicus and what it means in practical terms for both thebalance sheet and cash flows?

CEO Sam HupertThe biggest change for us will be in how we recognise revenue for professionalservices, particularly from our contracts in the US. With the previous accountingstandards, we would recognise professional services revenue based on when theservices were performed or on achieving milestones that were detailed in astatement of work or implementation plan. Under the new accounting standardsthe value of those professional services will be spread across the life of thecontract. So, it doesn’t impact us in the total dollar value of the contract or thetiming of receipt, it’s just the timing of how those implementation dollars getbrought to revenue. Other areas of our business, in particular the transaction based part of our business, which is the biggest and fastest growing part, won’tbe affected by the new accounting standards."

Cheers