“Revenue is a key performance metric used by investors and other stakeholders in assessing a company’s performance and future prospects” (Jones and Pagach 2013, p. 30). The measurement of revenue is one of the most important contemporary financial reporting issues. The aim of this assignment is to examine the issues of accounting for revenue based on IFRS 15 Revenue from Contracts with Customers. The objectives include to
- discuss the issues and implications of IFRS 15 and
- analyse the accounting policies for revenue adopted in the annual report of your selected company
- General information of the assignment
- This assignment is worth 20% of your final mark. You are to complete this assignment in pair.
- Your task includes to,
- Read the selected article, the Next Step for Revenue Recognitionby Jones, J. P., and D Pagach. (2013) The CPA Journal 2013 (October), which is available on Blackboard, and answer the following required questions
- Provide at least 5 examplesof the recognition criteria for revenue from the existing accounting standards which are mentioned in the journal article.
- Discuss the main difference of these standards with IFRS 15. (You are required to give the title of the standards and the paragraph number of each standard that you have identified.)
- Discuss the new revenue recognition criteria in IFRS 15.
- Are the revenue recognition criteria in IFRS 15 consistent with the requirements in the Conceptual Framework (CF) and why? (You are required to give the paragraph numbers of revenue recognition criteria in CF)
- Evaluate 2017 annual report of your selected company and critique the accounting policies adoptedin your selected company.
- Has your selected company adopted IFRS 15? If it has, then since when? If it has not, then what is (are) the current accounting standard(s) applied?
- a summary of accounting policy for revenue
- Provide the following information,
- the category of revenue (e.g. the main revenue, other revenues, current and last financial years)
- a copy of information about revenue and its policy as evidence but a copy of an annual report is NOT acceptable
- Discuss the implications e.g. how IFRS will impact on your selected company. If your selected company has adopted IFRS 15, what implications would be if it implemented.
- Prepare the assignment in report format based on your study. A sample format of the report is shown in the marking guide. You must use the provided structure to complete this assignment.
- A list of Australian listed companies is available on Blackboard. However, for this assignment purpose, you only select a company from one of the following industries,
- Telecommunication Services
- Consumer Services
- Pharmaceuticals & Biotechnology
- Technology Hardware & Equipment
- The words limit is 3,000 maximumbut no less or no more than 5% of the words limit excluding references list, footnote, and appendices using 1.5 spacing.
- Submission Requirements
- Both students need to include their name and student id on the assignment and cover sheet. Assignments will need to be placed in your unit coordinator’s mail box AND submitted electronically via Blackboard.
- Please note that your assignment will be submitted to Turnitin, as a deterrent to plagiarism. Only one person in your pair is to submit the assignment.Please be advised that you only have ONE attempt for submitting your assignment on Blackboard.
- Marking Criteria
- The assignment will be assessed on the content, completeness of information, appropriateness of format, grammar, and spelling and other additional information deemed relevant in relation to the issues. Refer to the marking guide for the breakdown of marks (refer Appendix 1).
- The marking guide is given to students as it is part of the requirement of the assignment that you demonstrate an understanding of how the issues should be addressed.
D. Reference List
- Provide a list of the publication details of all materials referred to in the report. More information on the Chicago referencing style can be obtained from the Curtin library website: http://libguides.library.curtin.edu.au/content.php?pid=141214&sid=1212910
|Scale of 0 to 5 for each criterion where 0 = Completely inadequate/incorrect/incomplete and
5 = completely adequate/correct/complete*
|Overall formatting for all requirements|
|· The objective(s) is (are) made clearly|
|· The introduction is relevant and informative|
|Answer to all requirements|
|· 5 examples of standards are listed|
|· Title and paragraph of each standard are provided|
|· The main difference is well discussed|
|· The new revenue recognition criteria are well discussed|
|· The revenue recognition criteria in CF are identified correctly|
|· The consistency is well discussed|
|· Has your selected company adopted IFRS 15|
|· A summary of accounting policy is provided and discussed|
|· The required revenue information is provided|
|· A copy of evidence of accounting policy is attached|
|· The implications are well discussed|
|Appropriateness and quality of discussion|
|Appropriateness of conclusion|
|Citations and references in correct format|
|Total marks 85 (17 items x 5)|
|Your score = 20 x Your marks /85|
* Scale of 0 to 5 for each criterion where
0 – Completely inadequate/incorrect/incomplete
1 – Inadequate/incorrect/incomplete
2 – Partly adequate/correct/complete
3 – Almost adequate/correct/complete
4 – Adequate/correct/complete
5 – Completely adequate/correct/complete
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