Revenue debate11 Feb 2017 10:04
The perennial revenues mystery rolls on.
I think the point that DSM have to recognise revenues from their invoicing rather than their payments received is quite right, standard business accounting procedure. However, that certainly doesn't mean that they have to recognise revenues paid over to Provexis on that basis, they can self invoice and pay over funds to Provexis upon receipt of payments, Provexis accounts show no bills awaiting payment, so that adds weight to the argument. So, DSM could bill today, be paid in three to twelve months, (yes, I've seen such credit terms offered in my business), but only pay over funds at the completion of the credit period. Hence the perceived lag.
Why do we need By Health when there are already products in the China market? That question doesn't really merit an answer. A country of 1.3 billion people?