RE:RE:RE:RE:RE:RE:RE:HaltedRevenue Recognition
2 parts
“Revenue” – we all understand what this means.
“Recognition” – how is it recognized in accounting terms?
Revenue recognition has nothing to do with loss of revenue as some fear-mongers are trying to suggest.
It's an accounting issue.
Both IFRS (International) and FASB 606 (U.S.) have changed their revenue recognition rules.
IFRS takes affect January 1, 2018
FASB took affect December 15, 2017
As FGD also reports to U.S. authorities, both First Global Data Corp. (Holding Company) and First Global Money Inc., reporting must now be stated with the new revenue recognition rules to be accepted.
So it’s a revenue recognition problem.
All the attempted fear-mongering is ridiculous.
Contracts are contracts and revenue from those contracts remain the same. They don’t suddenly disappear. They just need to compartmentalize those contracts into “deliverables.”
FGD has the compliant technology.
FGD has 40 U.S. state licenses.
FGD has powerful partnerships.
And FGD is already profitable.
The last reported revenues for the company, for 9 months, was US $11.2 million.