Concordia Healthcare Corp. T.CXR.R

RE:RE:RE:RE:RE:RE:NOTWRONG- you still haven answered my question

[healthstock1234]

I was speaking about only the new delay.

healthstock1234 wrote: < I am not sure that would be correct, as the event that triggers the payment should normally decide to which accounting period the expense belongs. >

Maybe you think at the matching principle:let the expense follow the revenue.
Here, in this case, the debt will be full disclosed by Note at Sept 30 and they will apply: 'Record expenses when are incurred"=when they pay the debt,from Sept 30th,2015 to Febr 1st,2016.

adamchess wrote: Stockcoach1: I am not sure that would be correct, as the event that triggers the payment should normally decide to which accounting period the expense belongs. The evidence in this is that the amount deferred will accrue interest from the earlier period. I think the reasoning is more to keep cash available for significant purchases currently being worked on. Another good reason to buy more CXR shares. 

quote=Stockcoach1]
Healthstock1234- to answer your question, it is strictly a move from accounting perspective, to divide the payment (deduction) into different quarters and different calendar years. Don't forget, this is a performance payment. If there is poor performance or no performance ... a smaller payment or no payment is made. Obviously CXR is looking to alter the payment date because they expect good performance that will trigger this clause.
It's all good.

healthstock1234 wrote:

Maybe it is better to ask them why they change the date of payment, but even that, the date is only 4 months later, not 4 years.

 

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