Originally Posted by
Snoopy
I quote from p11 of AR2016, an excerpt from the CFO's report.
"The group implemented a new accounting treatment to defer and amortise customer acquisition costs over the average consumer tenure period. In FY2016, this led to a $10.9m deferral of costs at 30 June 2016"
<snip>
The net effect of this policy, if annual acquisition costs do not change, will be to return us to the FY2015 position in FY2018. In the interim two years, FY2016 and FY2017, acquisition costs will be pushed down the road falsely, IMO, pumping up profits for FY2016 and FY2017. This change could make sense if FY2016 was 'unusually competitive'. But I seriously doubt that the gentailers will become less competitive going forwards. I don't like this change in accounting policy and I will be adjusting it out of the figures when I calculate my normailised profit results.