> whether or not you consider model training costs as part of the calculation

Whether they flow through COGS/COR or elsewhere on the income statement, they've gotta be recognized. In which case, either you have low gross margins or low operating profit (low net income??). Right?

That said, I just can't conceive of a way that training costs are not hitting gross margins. Be it IFRS/GAAP etc., training is 1) directly attributable to the production of the service sold, 2) is not SG&A, financing, or abnormal cost, and thus 3) only makes sense to match to revenue.