Background

Getswift Ltd (Getswift) is a newly listed company involved that provides a software distribution solution. The board has heard that a new revenue standard has been issued and as none of the board has a financial background, they are unsure what it means for them. They have heard though that the impact of the new standard on most businesses will be significant.

As a result, they have engaged your consultancy firm to provide them with a letter of advice to explain the impact that the new standard will have on the income recognition of Getswift.

REQUIRED

You are required to provide a letter of advice to the board of Getswift explaining the requirements of the new revenue standard with a focus on how it will impact their particular revenue recognition.

In addition, you are required to write a short transmittal email enclosing the letter of advice.

Important Additional Information

You are expected to research this company and gain an understanding of what they do so that you understand the nature of their revenue. The 2016/2017 annual report should be used as a starting point but you are expected to go further than this.

This assessment requires much more than copying the requirements from the new standard and those students that just do this will be marked poorly. The majority of the marks will be for the application of the standard to Getswifts revenue sources. Therefore, you need an understanding of what they do.

The language of your letter of advice should be tailored to the audience and their level of financial literacy.

Required Format and additional requirements

You are required to produce:

1. A transmittal email to the Board

2. A Letter of Advice, addressed to the Board, which includes references

This is the website for Getswift Financial Report year ended 30 June 2017:

https://www.asx.com.au/asxpdf/20170831/pdf/43lxn9xg34pp4q.pdf