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WsKR
“ Mr Government asks for some taxes on £3.”
Don’t hold your breath for this to happen.
....and still the price decays every week. Just shows how lucrative the mm's see that deal. Can't wait for the shares magazine awards this year. I bet they are saving up the contents of the septic tank especially for bidstack's 2020 award.
WsKr - all due respect but re. your big NoNo your confusing p&l reporting with the balance sheet here. It is definitely not illegal and you should report the substance of the transation.
It might not be an agent...but you're not telling us that the virtually worthless £10million deal Draper announced in December, is actually one that he had any choice or even much say in! That was obviously a last minute thing to try and stop the blood letting.
'Bidstack is NOT an agent as it controls and sets the price' Ok I agree that is what's being claimed. But they have not been using this 'control' as the Goss profit margin has been the same in the last two sets of results. This points to the fact that in reality is is an artificial construct.
My god. If Bidstack take £10 the have to state £10 it’s as simple as that. If that money hits their bank accounts before the split it HAS to be reported. Bidstack are giving the publisher money out of what they take. Some as Google pays their publishers. Same as everyone operating a revenue share.
Wskr - the FRC have always tried to stop this practice as it is misleading, as in your example for Bidstack to claim £10 in revenue when in reality they managed £3. Bidstack seems to get around this by claiming they own the inventory.
MG - you have to compare like with like as Bids accounting for revenue policy is different to Adverty. It is, putting it mildly, an aggressive policy that inflates the sale figures so if you want to compare like with like you have to discount bids revenue or inflate adverty revenue - doesn't matter which as long as you apply a reasonable gross profit margin to take account of the difference. Using / complying with IAS is an irrelevant point as you can easily modify your contracts to manipulate and this area of the accounting framework has always been open to interpretation. Thanks for the points raised about my lack of Swedish but your answer doesn't provide an explanation to the elements that make up the 2030ksek and why you do not class this as adverty revenue - so will stand by my figures for now. Always happy to learn.
Thanks Money, this was another thing that I wanted to address as the "dodgy revenues" keeps coming up. The naivety amongst some people about how simple accounts have to be reported is astounding. And of course not just through the media buying industry but in general for any revenue sharing businesses.
I will try to explain this as I would to a five year old. Apologies if you take offence at this Amiri but hopefully it will help you understand a bit more.
One day Bidstack meets up with Codemasters. Bidstack shows Codemasters that they can make extra money from their games. Codemasters is happy and shakes hands with Bidstack agreeing to keep 70% of all the money Bidstack can get from advertisers.
Bidstack now go and look for advertisers. They speak to Dominos and work very hard to show them how great it would be to advertise Dominos pizza on Codemasters's games. Dominos agrees to spend £10 on advertising with Bidstack. Bidstack gives £7 to Codemasters and keeps £3 for themselves. Everyone is very happy.
At the end of the year Mr Government comes along. They ask Bidstack how much money did they get this year from Dominos. Bidstack can't say they only got £3. This would be a big NO NO. This would be illegal. There was £10 in their bank account. So Bidstack says £10 but my profit was £3. Mr Government asks for some taxes on £3. They all drink lemonade. The end.
He’ll not be converted even by his own argument... Classic.
Also, ‘suspect’ revenue treatment? Might want to speak to IAS board about that. Whilst you look up WSKR’s request have a look at the difference between agency and principle revenue treatment.
Bidstack is NOT an agent as it controls and sets the price of the media it has exclusive rights over. It shares revenues - it doesn’t take a fee.
Come on guys if you present arguments - get it right!!!