Replies to post #57061 on Verus International Inc (VRUS)

[GermanCol]

I think Sello's logic doesn't have a problem. They would not be retroactively adjusting the balance sheet and P&L. What would happen if they can avoid the penalties is that they would include a credit in the new quarter, totally or partially offseting the provision left in the previous quarter P&L. As a result, the balance sheet for the new quarter would reflect the difference. It is a normal practice to make accruals with estimated costs when you close a quarter and then, when the actual costs get accounted, the difference is reflected in the following period. I hope I make myself clear, since English is not my native language. This is the reason why I haven't posted before, this my second post ever.

One problem with your logic

They can't retroactively adjust the balance sheet and P&L for an event (the 14c) occurring this year. The 10-K was as of Oct 31, 2018. The balance sheet is for a point in time.