allum Ltd is a publisher of books and journals. During 20X3, Callum Ltd introduced an innovative way or students to access textbooks and other books in the business field, such as career guides. On 1 Narch Callum Ltd launched a subscription service called "Callum Accounting Now Direct Online" CANDO). For a subscription fee of $6 each customer receives access to e-books and related materials. he subscription expires on 30 June 203, irrespective of when the customer purchases the ubscription. Customers must pay the full subscription in advance. allum Ltd provided the following summary of transactions related to CANDO: March 20X3 received $24000 in total from 4000 customers subscribing to CANDO April 20X3 received $24000 in total from 4000 customers subscribing to CANDO he accountant is trying to determine how much of the $48000 proceeds from subscriptions should e recognised as revenue in the year ended 31 May 20X3 because Callum Ltd's financial year end is 1 May. The Sales Manager said, "Too easy, just book it all to revenue". 1. Do the transactions fall within the scope of a current Australian Accounting Standard? If so, identify the Standard (E.g., the transactions are within the scope of AASB XXX: Title of standard). If you consider that NO Australian Accounting Standard applies, state, "No Australian Accounting Standard applies. Instead use the Conceptual Framework". 2. Identify one principle or rule from the Standard that you identified in your answer to question 1 (if you did not identify a Standard, use the Conceptual Framework) and explain how the principle or rule is relevant to an accounting policy issue identified in the case. (E.g., AASB XXX Paragraphs XA-XB is relevant to because ...) 3. In your own words, describe another accounting principle or rule from the Standard that you identified in your answer to question 1 (if none, use the Conceptual Framework). (up to 20 words) In your own words, describe an accounting policy for the subscriptions received from customers. Your policy should be different from the policy suggested by the sales manager. In describing your policy, distinguish between amounts received on 1 March and amounts received on 1 April if the accounting treatment differs. Do not justify your policy, just describe it. 5. Explain why the sales manager's policy is not appropriate, using criteria in an Australian Accounting Standard or the Conceptual Framework. allum Ltd is a publisher of books and journals. During 20X3, Callum Ltd introduced an innovative way or students to access textbooks and other books in the business field, such as career guides. On 1 Narch Callum Ltd launched a subscription service called "Callum Accounting Now Direct Online" CANDO). For a subscription fee of $6 each customer receives access to e-books and related materials. he subscription expires on 30 June 203, irrespective of when the customer purchases the ubscription. Customers must pay the full subscription in advance. allum Ltd provided the following summary of transactions related to CANDO: March 20X3 received $24000 in total from 4000 customers subscribing to CANDO April 20X3 received $24000 in total from 4000 customers subscribing to CANDO he accountant is trying to determine how much of the $48000 proceeds from subscriptions should e recognised as revenue in the year ended 31 May 20X3 because Callum Ltd's financial year end is 1 May. The Sales Manager said, "Too easy, just book it all to revenue". 1. Do the transactions fall within the scope of a current Australian Accounting Standard? If so, identify the Standard (E.g., the transactions are within the scope of AASB XXX: Title of standard). If you consider that NO Australian Accounting Standard applies, state, "No Australian Accounting Standard applies. Instead use the Conceptual Framework". 2. Identify one principle or rule from the Standard that you identified in your answer to question 1 (if you did not identify a Standard, use the Conceptual Framework) and explain how the principle or rule is relevant to an accounting policy issue identified in the case. (E.g., AASB XXX Paragraphs XA-XB is relevant to because ...) 3. In your own words, describe another accounting principle or rule from the Standard that you identified in your answer to question 1 (if none, use the Conceptual Framework). (up to 20 words) In your own words, describe an accounting policy for the subscriptions received from customers. Your policy should be different from the policy suggested by the sales manager. In describing your policy, distinguish between amounts received on 1 March and amounts received on 1 April if the accounting treatment differs. Do not justify your policy, just describe it. 5. Explain why the sales manager's policy is not appropriate, using criteria in an Australian Accounting Standard or the Conceptual Framework