Financial Accounting Theory | AASB 15

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assignment

ACCT3321 Financial Accounting Theory and Practice
Research Assignment: Individual hand-in (20% of final mark)
Please choose one of the following 3 topics.
Please upload your word document to LMS by 5pm on Monday 15 May 2017.
Total word limit is 1500 words ONLY (excluding references). Penalties apply for going over the word
limit.
NB Please include the URL link to the companies’ reports you analysed in your references
Please use 12 font, 1.5 line spacing and 2.5 cm margins on all sides.
Please state the word count at the beginning of the assignment.
Reference all material taken from other sources. Harvard reference style is preferred but any consistent
style will be accepted.
Report format: you will be asked for a report format. There are a variety of ways to format a report. We will
be looking to see that the format you use includes the following important aspects:
1) Cover page of report contains:
Title of report
Report date
Who prepared the report
For whom the report was prepared

2) A contents page (second page) which states the headings with page numbers
e.g. Table of contents (heading)
Introduction p.2
Conclusion p.5
References p.7
Marking schedule: (please see marking grid on next page)
 70% of the marks relate to content,
 25% for clarity of your communication of the answers,
 2.5% for report format,
 2.5% for appropriate referencing.

Description

AASB 15 is the new revenue recognition accounting practice that replaced the earlier standards. The basic principle underpinning AASB 15 is that revenue should henceforth be recognized in a way that depicts a transfer of promised goods or services within an amount reflecting consideration (price) of the goods or services. In addition, it requires that a 5 –step model should be used in recognising revenues (Deloitte, 2017). In the first step, the contracts should be identified. The second step should identify the distinct performance obligations. Third step should determine the price of the transaction. The fourth step should allocate transaction price to performance obligations, and lastly, revenue should be recognized when and a as the performance obligation has been fulfilled.