GREY:FGBDF - Post by User
Comment by
stockwatch99on Aug 04, 2018 2:39am
270 Views
Post# 28414175
RE:RE:RE:RE:The Essence Of FRAUD !!!???!!!
RE:RE:RE:RE:The Essence Of FRAUD !!!???!!!Freelunch5 wrote: Seems like more to it than what you suggest and the co. continues to be non-transparent.
If payments were received for licensing services to be rendered why not classify it as deferred revenue? Instead, it has been classified as a borrowing. A borrowing means the payments must be returned with interest.
The OSC needs to make mgmt come clean and detail the nature or these arrangements.
If the payments cannot be related to contractual deliveries as IFRS standards require, they cannot be declared as revenues, therefore also not as deferred revenues. Because this money is already sitting on FGD's bank accounts, they can either repay it to the customer or keep it as borrowings, until it can be related to contractual deliveries (looks like this requires those changes in contracts that have been mentioned during the past months). Obviously, FGD preferred it to keep the payments as borrowings, for liquidity reasons, I assume.