Legitimate ways to Record Revenue:
1. Persuasive evidence of an arrangement exists;
2. Delivery has occurred or services have been rendered;
3. The seller's price to the buyer is fixed or determinable; and,
4. Collectibility is reasonably assured.
I have been trying to analyse and understand the IFRS/GAAP methods of Revenue Recognition....The rules and regs are as clear as Mud, or about as clear as any North American Tax Code.
I can see examples where PSN has met the requirements, and examples that are wishy-washy, and examples where the should have spread them out.
All in all...... If you asked 12 different Accounting Experts/CA's, you would get 24 different opinions.
All rely on management 'judgement' of their own situation and how they fit into the 4 requirements above.
The point though is that the contracts were cut short/cancelled even though it is contract law. PSN cannot do much about these 'use or pay' contracts except collect what they can. They cannot afford to go roughshod with these big drillers as they want them as future customers.... The Old 'Rock and a Hard Place'.
I am still looking for evidence of Deliberate Fraud..... Have Not found any. Do you really think they would try and hoodwink the World by trying to pass-off $100,000,000?? " no one will notice..let's do it"!