WIP writedowns, page-2

Right to a degree, WIP will wash through negating any benefit as adjusted WIP is measured against closing WIP under AASB15.

That fails to address the other side of the equation. What is billed? Applying a more robust revenue recognition standards has nil effect on the case at law. The case will go through to completion blind to an accounting standard. If one was to accept AASB15 is perfect then that is stating somehow the standard has a method of knowing in advance an outcome.

I suggest, the more likely outcome of a more robust revenue recognition standard is a greater uplift in billed revenue relative to WIP booked - when comparing AASB15 to AASB18.

If time proves that to be correct then there is a profit bonus in the short run. As the WIP written down comes through at a higher billed rate relative to the amount written down.

Not to mention NIHL, which has no revenue recorded to day but that is a separate issue.

In the long run it will balance out as the books only contain work measured under AASB15 but until that time there could be benefits off-setting the write down (short term 1 to 2 years).