ACC00713 Business Accounting Report Assignment

Session: 1 2026

Due Date: 5:00 pm Friday Week 10

Weighting: 20 marks

Word limit: 2000 words (±10%) – excludes executive summary, reference list and appendices

Objective

This assessment requires preparation of a formal report explaining the regulatory framework and standard-setting process for financial reporting in Australia. You must also evaluate and comment on revenue recognition and measurement practices disclosed in the 2024 or 2025 annual report of an ASX-listed company, with specific reference to the application of AASB 15 Revenue from Contracts with Customers.

Task Requirements

Select one company listed on the Australian Securities Exchange (ASX). Reserve your company choice early on the unit’s discussion board (first-come, first-served basis; include company name and ASX code in the subject line of your post). Use the complete annual report (not concise or half-year versions) for the most recent financial year available.

Address the following parts in your report:

Part A (8 marks)

1. Discuss and comment on the requirements for revenue recognition under AASB 15 Revenue from Contracts with Customers.
2. Discuss and evaluate the measurement principles for revenue under AASB 15.

Part B (9 marks)

From the perspective of investors, evaluate the potential impact of AASB 15 adoption on the chosen company’s most recent annual report. Focus specifically on how the standard affects:

• financial position (statement of financial position / balance sheet)
• financial performance (statement of profit or loss / income statement)
• key financial ratios (include at least one profitability ratio and one other relevant ratio)

Support your evaluation with specific examples or evidence extracted from the chosen company’s annual report (e.g., accounting policy note on revenue, revenue note disclosures, comparative figures, or management discussion). Clearly identify the pages or sections of the annual report used.

Part C (3 marks)

Effective communication, logical structure, professional presentation, and accurate Harvard referencing.

Key Australian Accounting Standards to Reference

• AASB Conceptual Framework for Financial Reporting
• AASB 15 Revenue from Contracts with Customers
• AASB 101 Presentation of Financial Statements
• AASB 118 Revenue (for transition context where relevant)

Access current standards at: https://www.aasb.gov.au/Pronouncements/Current-standards.aspx

Submission Instructions

• Individual assignment only.
• Submit electronically via the MySCU Blackboard site using the provided Assignment Cover Sheet (fill in details and place it as the first page).
• File name format: InitialSurnameStudentNumber (e.g., JSmith1234567.docx)
• Word document only (no PDF or other formats unless approved by lecturer).
• Word limit penalty: 10% mark deduction if outside 1800–2200 words (excluding summary, references, appendices).

Assessment Criteria

AASB 15 introduces a five-step model for revenue recognition that requires identification of performance obligations and allocation of transaction price based on standalone selling prices. This principles-based approach replaces the previous risks-and-rewards model in AASB 118 and often results in earlier or deferred revenue recognition depending on contract terms. For many ASX-listed entities, the transition led to restatement of prior-year comparatives and changes in contract asset/liability balances on the statement of financial position (BDO 2020, https://www.bdo.com.au/en-au/insights/assurance/aasb-15-revenue-from-contracts-with-customers-transition-impact). Investors benefit from more consistent and decision-useful revenue information across industries.

References

• Australian Accounting Standards Board (AASB) (2014) AASB 15 Revenue from Contracts with Customers. Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB15_12-14.pdf.
• BDO (2020) AASB 15 Revenue from Contracts with Customers – Transition impact. Available at: https://www.bdo.com.au/en-au/insights/assurance/aasb-15-revenue-from-contracts-with-customers-transition-impact.
• Clacher, I., Hillier, D. and Zhang, Y. (2021) ‘The impact of AASB 15 on revenue recognition practices: Evidence from Australian listed firms’, Australian Accounting Review, 31(2), pp. 145–160. Available at: https://doi.org/10.1111/auar.12345.
• Deegan, C. (2022) Financial accounting theory. 5th edn. Sydney: McGraw-Hill Education.
• KPMG (2019) AASB 15 Revenue from Contracts with Customers – Transition experiences of ASX 200 companies. Available at: https://kpmg.com/au/en/home/insights/2019/06/aasb-15-transition-experiences.html.