Cettire secures auditor approval for FY24 accounts

Celene Ignacio

24th Sep 2024

Cettire has secured the approval from its auditor Grant Thornton of the company’s accounts last financial year.

Last month, Cettire said Grant Thornton had yet to sign off its accounts due to technical review of its revenue recognition.

Grant Thornton noted that Cettire operates a drop-ship model, where it does not hold inventory but facilitates the delivery of goods from the suppliers to the customers.

Cettire recognises revenue as a principal and not an agent, a factor the auditor had to look into.

“Judgement is required in determining the date of delivery for all orders shipped but not yet delivered at year end date for correct revenue recognition,” said Grant Thornton.

“Significant judgement is also required in the assessment of principal versus agent and indicators of control under AASB 15.”

In August, the online retailer said its sales revenue surged 78 per cent to $742.3 million as its active customers soared 64 per cent to 692,000.

Its net profit, however, fell to $10.5 million from $16.0 million.