Revenue mirage at iCash Payments

The revenue recognition policy of iCash Payments may warrant a major question mark after the deployer of automatic teller machines reported revenue in its profit and loss statement more than a third higher than recorded in its cash flow statement.

Taking the P&L at face value, iCash Payments recorded a net profit of $1.86 million for the December 2009 half and up from a loss of $300,000 in 2008.

More than half of the sales arise from the firm's infant business in South Korea.

In Australia losses over six months were $1.7 million.

There was no mention of progress in the company's mooted entry into the ATM market in New Zealand, and given the obstacles encountered by others with the same idea (such as Customers Limited) there probably is not any.

The accounts note that iCash "entered into an agreement to acquire ATM assets" in the last two months but did not provide further details.