Observations on the annual report, page-14

What he said was:

1. Note 18D – Incorrectly believing deferred income is a financial liability (well actually in this case it might be, it’s not for a normal company!)

Deferred income is a liability & is on the balance sheet as such. See note 14, then move to note 18. If they have to pay back the income due to not being able to provide the service agreed upon, then they would have to pay the money back, just like any other company would.

Now, I know you're going to start going on about the way they've recognised deferred income, but that's not the point in this discussion. I don't agree with the way they've recognised it either (in the sense that it is very risky), but it does not necessarily mean that it would need to be restated (especially if the expected revenue comes through from liability to asset - as per note 18).