RE:RE:RE:Thoughts on revenue..... since the shorts won't help..I think the accounting standards on revenue recognition are pretty intuitive. Revenue should only be recognized when substantially all the risks and rewards of the product have been passed onto the customer. It's irrelevant if the product has gone all the way down the chain to the final consumer.
What's important is to understand if these customers are able to return any unsold products back to Concordia. If this is the case then this would be unearned revenue. The approach CXR takes is to recognize gross revenue and then offset by the risks retained from its returns policy.
Pg19 of 2016 Q1 report states:
"Concordia has a returns policy that allows wholesalers to return the product within a specified period prior to and subsequent to the expiration date. Provisions for returns are recognized in the period in which the underlying sales are recognized, as a reduction of sales revenue"
TLDR; CXR's revenue recognition policy seems to be a bit aggressive; revenue net of its returns provisions would paint a more accurate picture.