Background

H company has a number of different revenue streams.With the implementation of the new revenue standard AASB 15 Revenue from contracts with customers, the Finance Manager has asked you to provide an overview of how this new standard will impact the business.They have provided you with a 100 page information guide that was received from the external auditors on the new standard.

You need to be able to deliver the analysis in a manner that other people in the business will understand rather than presenting to a technical accounting team, in other words your answer needs to be practical but informative.The revenue streams to discuss include electricity revenue sold on the National Electricity Market and consulting revenue from the Engineering portion of the business.You have been given access to the Trading Department as well as the Engineering Team to help assess the impact of the standard.

Questions

1.What approach would you follow to try answer the above question?

2.Assume you have only received technical responses from your enquiries.What approach do you adopt to deliver a suitable response to the Finance Manager, keeping in mind their request of a practical answer?