ACC00713 Accounting Financial Analysis

The new revenue standard – AASB 15 Revenue from Contracts with Customers – applies to entities and businesses for the accounting periods beginning on or after 1 January 2018. The new accounting standard changes the financial reporting regime in terms of revenue. This will not only influence customer contracts and business model, but also have wide-ranging implications in business and control process.

You should address the following questions in your report.

Part A

1) Discuss and comment on the requirements of revenue recognition according to AASB 15.

2) Discuss and evaluate the measurement of revenue according to AASB 15.

Part B

From the perspective of the investors, discuss the potential impact of the adoption of AASB 15 on 2019 annual report of the chosen company. Your investigation should focus on the influence on financial information regarding financial position, financial performance and financial ratios (including at least one of financial ratios, such as profitability ratio) of the chosen company.

Your report should include some examples or evidence from the chosen company to support your discussion.

Part C

Effective communication, logic presentation and appropriate reference of this report. You should provide relevant paragraphs of AASBs or others (e.g. sections from 2017/2018 annual report) to support your evaluation. You can access AASBs.

In particular, your report should refer to the following AASBs in your report:

• AASB Conceptual Framework: Framework for the Presentation and Preparation of Financial Statements
• AASB 15 Revenue from Contracts with Customers
• AASB 101 Presentation of Financial Statements
• AASB 118 Revenue

Assessment criteria:

The quality of this report will be assessed based on the following criteria:

• Identify the regulatory framework of financial reporting in Australia.
• Explain the recognition and measurement of revenue in business practice.
• Evaluate the implementation of recognition and measurement of revenue in financial reporting by the chosen company.
• Use paragraphs from the annual report of a chosen company, Australian Conceptual Framework, AASB 101 Presentation of Financial Statements, AASB 15 Revenue from contracts with customers, or other relevant AASBs as guidelines to support your discussion if it is necessary.
• Demonstrate effective communication, logical presentation and integrated evaluation.