Ok - time to stop talking about buffett on this thread. Let me...

Ok - time to stop talking about buffett on this thread.

Let me clarify one thing you all seem to be hung up on - AASB 15. There will be no material difference between SHJ and SGH's revenue accounting under the different standards currently being applied. The standards are both sufficiently gray, and both firms businesses are sufficiently similar, that they are accounted for in a similar fashion. You might also see, if you look, that both are audited by EY. Different office and different partner, but they make sure the accounting treatments are the same for clients in the same industry.

The provision adjustments (ie writedowns) that SHJ took in 2016 effectively prepared it for life under AASB 15 - when they referred to actuarially assessing the WIP provisioning - effectively preparing for the "highly probable" reference in the new revenue standard (ie  The estimated amount of variable consideration will be included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved), whilst still complying with the existing standard.

So, the numbers above can be viewed as a direct comparison of operating performance, without accounting having any significant impact.