Bingo mainly applied AASB as its revenue recognition policy. The organization identified three major segments: collection, post-collection and others, where the key revenue stream falls into each segment. Bingos revenue mainly come from providing service and selling goods to the customers. The revenue recognition criteria for services should be determined by satisfying performance obligations satisfied over time based on paragraph 35 AASB 15. For instance, Bingo provides waste management service and bin hire service to its customers, one of the revenue streams is bin revenue which includes the skip bin and commercial bin collection. The underlying performance obligation for this revenue stream includes the collection of skip bins from residential and commercial complexes, households and construction sites for the disposal of B&D waste. And the revenue is recognized at the point when the bins are collected where the performance obligation is satisfied. As for the post-collection segment, the revenue stream includes three major parts, which are the gate fee from recycling center, recycled product revenue and gate fee of the landfill. Regarding the recognition of sales of goods, it is related to the contracts bind with customers and it requires the entity to satisfy performance obligation meanwhile the transfer control of the assets to the customer is successful (AASB 15, 2021). The company has the sales of waste equipment which includes the supply of steel bins and plastics bins that are manufactured and distributed by the company.

Therefore, the revenue of recycled goods is recognized when the goods are transferred to the customer, where the ownership and control of the assets have been transferred and performance of the obligation of the sale of recycled product is completed.

(Figure 1)

To help businesses survive through the pandemic, the Australian government launched the JobKeeper supporting program. In the case of Bingo, there are two subsidiaries eligible to claim a $0.8 million JobKeeper payment where $0.5 million was received by the end of the financial year. These payments are the government grant which can be recognized in the books in accordance with AASB 120 dealing on Accounting for Government Grants and Disclosure of Government Assistance. The company recognizes such revenue when there is reasonable certainty that the group will abide by the conditions which are attached to the grant and that there is a certainty that the grant will be received. As per the below figure, Bingo Group has recognized a total amount of $837,000 of government grant in FY 2020, where the figure was blank for FY 2019. In addition, the grants were recognized in profit or loss when the associated costs are recognized as expenses. To illustrate, the grant income was recognized as other income while the employee costs are recorded as expenses.

(Figure 2)

Question:

1)Summarize the whole paragraph in points: