Yep, a bit of misunderstanding over the accounting changes.
My understanding (happy to be corrected) is JCS sign long term contracts with clients (~48 months) with a large amount of work completed up front (my best guess would be software installation and client training) and clients pay a large amount of the contract value in cash up front to accommodate.
Under the old accounting standards JCS would record the contract revenue in a straight line, but this did a poor job of reflecting the actual cash being collected (and costs being incurred) of the operational business.
The new standards allow JCS to record more of the contract revenue up front. You are right mate that at the end of the day revenue can't be doubled up. But keep in mind that revenue as it exists in the P&L is just an accounting number. JCS have been able to convince their auditors (BDO, not a backwater outfit) that the new standards better reflects their operational business.
I have no issues with the accounting change, I am tempted to take a position prior to the FY18 guidance in a fortnight. My major concern is over the TEMS division. I am getting my head around the positives and negatives of JCS management allocating time and capital to a stagnant business, even if it can produce a stable earnings stream while it is wound down.
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