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Guestlogix Inc T.GXI.R



TSX:GXI.R - Post by User

Post by Moneyday0on Dec 16, 2015 10:28am
384 Views
Post# 24387989

Simply revenue recognition - too much recorded one period vs

Simply revenue recognition - too much recorded one period vsother. Not as if they didn't have revenue. So worst case, they recorded unearned revenue as revenue. Its still revenue. Means loss in prior periods likely goin to be greater, but higher in current periods. Not like they recorded revenue that was ficticious or false. They would have had to state that in news release. The release simply states revenue recognition per accounting policies. Which means " Revenue recognition principle tells that revenue is to be recognized only when the rewards and benefits associated with the items sold or service provided is transferred." Actually this could prove beneficial to GXI as loss in previous quarters likely greater and revenue gets pushed into more current periods so loss now much less.
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