RE:RE:Did anyone read the auditor report?There is no issue with the the key audit matter.
Regarding revenue recognition, there is a basic principle which is that you recognize revenue as it happens (not upfront, which was mistakenly inferred it seems) and then you recognize the costs associated with that revenue. What the key audit matter says is that each ITS project has its specifities and the auditor needs to partly rely on the revenue and cost recognition done by Quarterhill, since the auditors lack the precise knowledge and details of every specific project. This is relatively par for the course.
As to business combination, it is standard practice to recognize as goodwill or intangible the amount paid over the accounting value when a company is bought. In time, there will be tests to verify that the economic assumptions at the time that the purchase was made are still valid. In the event that the tests reveal that the long term economic benefits of the business combination won't materialize, then an impairment on the value of goodwill/intangibles will be needed.
Btw, I'm an accountant and I've been through multiple audits...