Gas Giant Australia Ltd signed a 20‐year deal to sell gas to a neighbouring country for \($1.8\) billion. The contract was signed on the last day of Gas Giant Australia Ltd’s financial year, 30 June. The company received an upfront payment of only \($90\) million from the neighbouring country on that day, but decided to recognise ‘revenue’ of \($1.8\) billion for the financial year just ended.

Required

(a) Discuss in detail how Gas Giant Australia Ltd should account for the contract, justifying your answer by reference to relevant definitions, recognition criteria and relevant accounting standards.