Corporate Accounting: Revenue Recognition under AASB 15

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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1CORPORATE ACCOUNTING
Executive Summary:
The report is framed to give an overview about the revenue and recognition as per the new
standards of AASB 15. The report gives the explanation on the five stage of revenue model.
For the depth understanding of revenue reorganization the report is addressed to board of
director of TPG Telecom Ltd, Metcash Ltd and National Australia Bank Ltd suggesting to
apply the revenue model. Later, the key difference between the definition and recognition
criteria for income under the Conceptual Framework for Financial Reporting and revenue
under AASB 15.

2CORPORATE ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Five Step Reorganization Revenue Model.............................................................................4
Transition and effective date..............................................................................................5
Standards effect on.............................................................................................................5
Explanation of the model...................................................................................................5
Disclosure requirements.....................................................................................................6
Business need help with AASB implementation...............................................................6
TPG Telecom Ltd...................................................................................................................6
Metcash Ltd............................................................................................................................7
National Australia Bank Limited...........................................................................................8
Part B..........................................................................................................................................9
Difference between ‘income’ under the Conceptual Framework for Financial Reporting,
and ‘revenue’ under AASB 15...............................................................................................9
Definition...........................................................................................................................9
Recognition Criteria-..........................................................................................................9
Conclusion................................................................................................................................10
Reference:................................................................................................................................11

3CORPORATE ACCOUNTING
Introduction
The gross inflows of cash, other consideration, receivables that is been arising in the
development of the common activities of an entity from selling of goods, providing facilities
also from the sources that fetches royalties as well as dividends the amount that is collected is
called revenue. The principle that helps in recognition of revenue is concluded from the
concept of accrual along with the matching concept. The principles indicates that
identification of revenue prevails there where rewards as well advantage is related to the
selling of item as well as facilities that is being provided is transported, where the sum can be
projected consistency and once the sum is understood or attainable, no substance when cash
is being acknowledged or will be acknowledge. It is mostly troubled with the judgement of
acknowledgement of income in the declaration of profit and loss of an innovativeness. It
regulate the secretarial period, in that incomes along with expenses are predictable. The
report is addressed on the Revenue reorganization in accordance with AASB 15 to the board
of directors of TPG Telecom Ltd, Metcash Ltd and National Australia Bank Ltd.