Topic 10: Revenue
Recognition
Financial Accounting BFA201
Readings and references
• Deegan Chapter 15
• AASB Framework
• AASB 118 Revenue
• AASB 111 Construction Contracts
• AASB 101 Presentation of Financial Statements
2
Learning Objectives
• Define and apply the concepts of income, revenue
and gains
•
Apply the requirements of AASB 118 for the
recognition and measurement of revenue
•
Able to explain the issues associated with
recognising revenues for long-term construction
projects
3
New Requirements
• There is a joint project being conducted by IASB and FASB in
the development of a new accounting standard to address
revenue derived from contracts with customers
• This new standard will replace two of the current AASBs that
are the topic of today’s session: AASB 118 Revenue and
AASB 111 Construction Contracts.
• An exposure draft was released in 2011 for this converged
standard.
• Subsequent comments and deliberations of the IASB and FASB
have occurred.
• It was determined at the February 2013 IASB meeting that a
final standard would be prepared and this would be applicable
for reporting periods beginning on or after 1 January 2017
4
New Requirements
• The reason for the development of the new converged standard
was that it was argued that the recognition of revenue for some
transactions as required under AASB 118 and AASB 111 were
inconsistent with the definition and recognition criteria for
revenue in the IASB conceptual framework.
• Recognition criteria in these current standards use a
recognition criteria dependent upon whether the transaction
transferred the ‘risks and rewards’ of ownership of assets rather
than ‘control’ of assets as required by the framework
• Adopting this view, the proposed new standard embraces the
view that revenue recognition should be a direct function of
whether goods and services have been transferred to the
control of the customer.
• We will be discussing the current AASB 118 and AASB 111 in
this lecture, but will try to anticipate the potential changes that
5
will come about because of the new converged standard.
AASB Framework:
Income
Definition of Income and Revenue
•
Income and expenses are not defined by AASB
101 and therefore we must look to the AASB
Framework
•
Income is defined under the AASB Framework
(para 70) as:
•
•
Increases in economic benefits during the accounting period in
the form of inflows or enhancements of assets or decreases in
liabilities that result in an increase in equity, other than those
relating to contributions from equity participants
The AASB Framework (para 74) reinforces the point
that income is divided into ‘revenues’ and ‘gains’
Definition of income and revenue
Income
Revenues
Ordinary activities
(par 74) Sales, fees, rent,
interest, div. royalties
Gains
Other income – eg.Sell NCA;
revaluations; (par 75-76);
displayed separately; often net
of related expenses
8
Definition of Income and Revenue
•
Revenues (para. 74 of the AASB Framework)
•
•
revenue arises in the course of the ordinary activities
of an entity and is referred to by a variety of different
names (including sales, feeds, interest, dividends,
royalties and rent)
Gains (paras 74 and 75 of AASB Framework)
•
Other items that meet the definition of income and may
or may not arise in the course of the ordinary activities of
an entity. Gains represent increases in economic
benefits and as such are not different in nature from
revenue.
Definition of Income and Revenue
Revenues and gains (par. 75, AASB Framework):
• Gains include those arising on the disposal of non- current
assets.
• The definition of income also includes unrealised gains, for
example those arising on the revaluation of marketable
securities and those resulting from increases in the carrying
amount of long-term assets.
• When gains are recognised in the income statement, they are
usually displayed separately because knowledge of them is
useful in making economic decisions.
• Gains are often reported net of related expenses.
Definition of Income and Revenue
• Generally speaking, revenues relate to the ordinary incomegenerating activities of an entity, e.g. sales or rental receipts
• Gains relate to ‘other income’—not necessarily part of the
ordinary activities of an entity
• When gains are recognised in the income statement, they are
usually displayed separately because knowledge of them is useful
in making economic decisions. Gains are often reported net of
related expenses.
• Differentiation based on some degree of professional judgment
• What is an ‘ordinary’ activity for one business may not be
‘ordinary’ for another—so the benefits might be deemed ‘revenue’
in one entity and a ‘gain’ in another
Recognition of Income
•
AASB Framework (para 83) provides that an element
of a financial statement should be recognised if:
•
•
•
The item has a cost or value that can be
measured reliably; and
It is probable that any future economic benefit
associated with the item will flow to or from the
entity.
Para 92 also indicates that income is recognised in
the income statement (statement of comprehensive
income) when an increase in future economic
benefits related to an increase in an asset or a
decrease of a liability has arisen that can be
measured reliably.
AASB 118 Revenue
Definition of Revenue
Scope of AASB 118 ‘Revenue’ is fairly restricted—applied to
accounting for revenue arising from transactions and events
relating to (par. 1):
a) the sale of goods
b) the rendering of services
c) the use by others of entity assets yielding interest,
royalties and dividends
Note that the AASB Framework provides a general definition –
you should note the difference.
Measurement of Revenue
Where revenue has been recognised, AASB 118 requires that
the revenue be measured at the fair value of the consideration
or contributions received or receivable (par. 9)
– If cash is not to be received for some period of time
the future amount to be received would need to be
discounted to its present value and the present value
recognised as revenue (refer to AASB 118, par. 11)
– If cash is received for goods and services provided
the revenue recorded is equal to the cash received
15
Measurement of Revenue
• Measured at fair value of consideration (see definition of fair
value at para 7) taking into account any trade or volume
discounts
• Usually the consideration is in the form of cash or cash
equivalents.
• Where the inflow of cash or cash equivalents is deferred it will
be necessary to discount the deferred amount to the present
value (see para 11)
• Where goods are exchanged or swapped:
– Similar in nature, then there is not a transaction that generates revenue;
– Dissimilar in nature, there is a transaction and the revenue is measured at
the fair value of the goods or services received.
Recognition of Revenue
•
The AASB Framework provides that revenue is recognised
when it is probable that future economic benefits will flow to
the entity and these benefits can be measured reliably.
•
However, AASB 118 takes these general criteria and adds two
or three more for each of the types of transactions (sale of
goods; services; and interest, royalties and dividends).
Recognition criteria:
sale of goods para. 14
.
PLUS 3
extra
Common
2
Probable
FEBs
Revenue
measured
reliably
Transferred
risks &
rewards
Control /
mgement
Costs
measured
reliably
18
Recognition of Revenue
Revenue from the sale of goods is to be recognised when all of
the following conditions have been satisfied (paras 16 and 17):
•
•
•
•
•
the entity has transferred to the buyer the significant risks
and rewards of ownership of the goods
the entity retains neither continuing managerial
involvement to the degree usually associated with
ownership nor effective control over the goods
the amount of revenue can be measured reliably
it is probable that the economic benefits associated with
the transaction will flow to the entity
the costs incurred or to be incurred in respect of the
transaction can be measured reliably
Recognition of Revenue
•
The Appendix to AASB 118 also gives guidance in relation to the
recognition of different types of revenues. For example:
•
•
•
•
•
•
•
For example, the Appendix looks at sales of goods subject to
conditions. For example:
•
•
•
•
•
Goods sold subject to conditions;
Lay-by sales
Orders when partial payment received in advance
Subscriptions to publications
Instalment sales
Real estate sales.
Returns
Sale and leaseback
Call and put options
Customer loyalty programs
And provides guidance for recognition
Returns
• Company sells its product with right for customer
to return the product
• Revenue from the sales transaction may be
recognised at time of sale if the company is
reasonably assured to be entitled to the revenue
(calculated by prior experience)
– a refund liability and an asset relating to right
to recover the product will be recognised
21
Example - Returns
• Company sells 500 products for $100 each,
expects to have 1% returned.
• Return policy is 30 days for full refund.
• Cost of each product is $70.
• Prepare journal entries for the above.
22
Solution
Cash at bank
50,000
Revenue
49,500
Refund liability
Cost of good sold
Right to recover
Inventory
500
34,650
350
35,000
23
Solution
When customer returns goods:
Refund liability
500
Cash at bank
Inventory
Right to recover
500
500
500
24
Customer Loyalty Programmes
• Loyalty award credits: sales transaction results in sale
and also future redemption of free or discounted goods
or services
Dr Revenue
Cr Deferred revenue
Recognition of awarding of award points
Dr Deferred revenue
Cr Revenue
Recognition of redemption of award points
25
Recognition Criteria:
rendering of services para. 20
26
Recognition Criteria: Services
•
Where the revenues arise from providing services, there are additional
recognition requirements (para. 20):
•
AASB 118 requires the use of the percentage of completion method for
revenue arising from the provision of services.
•
When the outcome of a transaction involving the rendering of services
can be estimated reliably, revenue associated with the transaction shall
be recognised by reference to the stage of completion of the transaction
at the end of the reporting period.
•
However, note the common criteria: revenue can be measured reliably
AND Probably economic benefits associated with the transaction will flow
to the entity
•
Construction contracts are a good illustration of these recognition criteria
being applied.
Recognition Criteria:
interest, royalties, dividends para. 29 and
30
28
Unearned revenue – liability!
Allen Ltd rents a building to Moore Ltd for $12,000
payable twelve months in advance on 1 June 2012.
1 June 2012
Cash at bank
12,000
Rent received in advance
30 June 2012
Rent received in advance
Rent income
12,000
1,000
1,000
29
AASB 111 Construction
Contracts
Construction Contracts
31
Accounting issues
• Contracts span several reporting periods
• What’s the value of a partly completed job?
• When do you recognise revenues &
expenses?
AASB111 requires:
• Percentage-of-completion
method
32
Accounting for construction contracts
(AASB 111)
• Accounting issues result from some construction projects
taking a number of financial periods to complete
– Should revenue be recognised progressively throughout
the contract?
– If so, how would the amount of revenue be determined?
• Deferral of revenue recognition until completion of project
would result in greater volatility of reported revenues and of
related profits or losses
Accounting for construction contracts – AASB
111 Definition
• Construction contract defined (AASB 111, par. 3):
– A contract specifically negotiated for the construction
of an asset or a combination of assets that are closely
interrelated or interdependent in terms of their design,
technology and function of their ultimate purpose or
use
Construction Contract - Definition
• A contract relating to the construction of an item or a
combination of items and including:
– contract to design, build, construct or produce
– contract relating to the supervision and coordination of
construction activity
– contracts for architectural, engineering and other services
relating to construction activity (AASB 111 para 4)
Accounting for construction contracts –
Definition
Accounting requirements
• Individual construction contracts must be accounted
for separately and the requirements of the standard
must be applied separately to each contract
Accounting for construction contracts –
Recognition and Measurement
Accounting requirements
• AASB 111 requires (if certain criteria are satisfied) that
contractors use the percentage-of-completion method to
account for construction contracts
• Profit on construction contract is recognised in proportion to
the work performed in each reporting period in which
construction occurs
Accounting for construction contracts –
Recognition and Measurement
• Percentage-of-completion method should be used provided
that certain conditions are met that enable the outcome of
the contract to be reliably estimated
AASB 111 (par. 22):
• When the outcome of a construction contract can be
estimated reliably, contract revenue and contract costs
associated with the construction contract are to be
recognised as revenue and expenses respectively by
reference to the stage of completion of the contract activity at
the reporting date
Accounting for construction contracts –
Types
Types of construction contracts
• Fixed-price contracts
• Cost-plus contracts
• Type of contract determines the conditions that must be
satisfied to use the percentage-of-completion method
• AASB 111 paragraph 3 has definitions
Accounting for construction contracts –
Fixed price
Conditions of use of percentage-of-completion method
(AASB 111, par. 23):
• With fixed-price contract:
– total contract revenue can be measured reliably;
– it is probable that economic benefits arising from the
contract will flow to the contractor;
– both the contract costs to complete the contract and stage
of contract completion as at reporting date can be
measured reliably; and
– the contract costs attributable to the contract can be
clearly identified and measured reliably so that actual
costs can be compared with prior estimates.
40
Accounting for construction contracts –
Cost-Plus
Conditions of use of percentage-of-completion method
(AASB 111, par. 24):
• With cost-plus contract:
– it is probable that the economic benefits arising
from the contract will flow to the contractor; and
– the contract costs attributable to the contract,
whether or not specifically reimbursable can be
clearly identified and measured reliably
41
Accounting for construction contracts –
Recognition and Measurement
If conditions are not satisfied:
•
no profit is to be brought to account until they are satisfied
•
at the extreme, no profit to be recognised until project
completion
Note:
When outcome of construction contract cannot be
estimated reliably (AASB 111, par. 32):
(a) revenue is to be recognised only to the extent of
contract costs incurred that it is probable will be
recoverable; and
(b)contract costs are to be recognised as an
expense in the period in which they are incurred
Accounting for construction contracts Measurement
Measuring progress towards completion
•
Percentage of completion can be measured in a number of
ways (per AASB 111, par. 30):
– The entity uses the method that measures reliably the
work performed. Depending on the nature of the
contract, the methods may include:
(a) in the proportion that contract costs incurred for work
performed to date bear to the estimated total contract
costs;
(b) surveys of work performed; or
(c) completion of physical proportion of the contract
work.
•
Progress payments and advances received from customers
often do not reflect the work performed
Accounting for construction contracts Measurement
Measuring progress towards completion
Cost basis:
•
The percentage of completion is measured by comparing
costs incurred to date with the most recent estimate of the
total costs to complete the contract
•
Only those contract costs that reflect the work performed
are included in costs incurred to date. Examples of
contract costs excluded are:
– contract costs that relate to future activity on the
contract, such as costs of materials delivered or set
aside but as yet not installed, used or applied
– payments made to subcontractors in advance of work
performed
44
Accounting for construction contracts
Types of costs incurred by contractors
(a) Costs related directly to a specific contract, e.g. direct
materials, direct labour, depreciation of equipment, costs of
moving plant and equipment, expected warranty costs, costs
of design and technical assistance directly related to
contract, costs of securing contract, costs of hiring plant and
equipment
(b) Costs that are attributable to contract activity in general and
capable of being allocated on a reasonable basis to specific
contracts, e.g. tender preparation, insurance, design and
technical assistance
Accounting for construction contracts
Types of costs incurred by contractors (continued)
(c) Costs that relate to the activities of the reporting entity
generally or that relate to contract activity generally and are
not normally related to specific contracts, e.g. general
administration and selling costs, finance costs and research
and development costs not directly related to contract
Note:
• Costs (a) and (b) are normally included in accumulated
contract costs
• Costs (c) are usually excluded from accumulated
contract costs because they do not relate to reaching the
present stage of completion of a specific contract
Measuring progress
COST method - proportion of costs incurred for work
performed to date
% Complete =
Costs incurred to date
Most recent estimate of total costs
Current period revenue
= Estimated TOTAL revenue
X % complete
LESS revenue previously recognised
47
Accounting for construction contracts Measurement
Journal entries for construction contract accounting
• To record costs of construction:
Dr
Construction in process
Cr
Materials, cash, payables, etc.
• To record billings to customers:
Dr
Accounts receivable
Cr
Billings on construction in process
Accounting for Construction Contracts Measurement
Journal entries for construction contract accounting
• To record collections of billings:
Dr
Cash
Cr
Accounts receivable
• To record contract revenue and contract expenses:
Dr
Construction in process
Dr
Construction expenses (costs incurred)
Cr
Revenue from long-term contracts
Accounting for construction contracts Measurement
Journal entries for construction contract accounting
To record final approval of contract:
Dr
Billings on construction in process
Cr
Construction in process
Construction contracts summary
2. Bill customers
Dr Accounts receivable
Cr Billings on contracts in progress
1. Record costs to date
Dr Construction in progress
Cr Cash / Accounts payable
3. Record cash received
Dr Cash
Cr Accounts receivable
4. Record profit based on % completed
Dr Construction in progress (year’s profit)
Dr Construction expenses (costs)
Cr Revenue – long term construction
Prepare
1.
2.
3.
4.
5.
5. On completion:
Dr Billings on C.I.P
Cr Construction in progress
schedule of costs for each year – calculating…
Costs incurred for year AND total accumulated costs to date
Total estimated costs to complete contract
Percentage complete (total costs to date ÷ total est. costs)
Estimated total gross profit/loss (total contract price – total est. costs)
Gross profit recognised for the year (est. total profit x % complete)
[recognise LOSS immediately]
51
Accounting for construction contracts Measurement
Application of percentage-of-completion method to account
for construction contracts
– Lecture Example 2.1 Part A (a) and (b)
– Lecture Example 2.1 Part A (c) – outcome cannot be
reliably measured
Lecture Case Study
XYZ signs a contract on 30 June 2006, agreeing to build
a bridge for ABC at a contract price of $40million. XYZ
estimates that construction costs will be as follows:
Year ending
Cost
30 June 2007
30 June 2008
30 June 2009
$10m
$16m
$ 6m
$32m
Payments on
each 30 June
$ 8m
$ 20m
$ 12m
$ 40m
The contract is completed as expected on 30 June 2009. Assume that actual
costs & cash collections occurred.
a. Calculate yearly income
b. Provide journal entries assuming these CAN be reliably estimated
c. Provide journal entries for each year assuming stage & outcome cannot
be reliably measured.
53
Solution – Case Study (a)
2007
4 0 ,0 0 0 ,0 0 0
2008
4 0 ,0 0 0 ,0 0 0
2009
4 0 ,0 0 0 ,0 0 0
1 0 ,0 0 0 ,0 0 0
2 2 ,0 0 0 ,0 0 0
3 2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0
3 1 .2 5 %
2 6 ,0 0 0 ,0 0 0
6 ,0 0 0 ,0 0 0
3 2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0
8 1 .2 5 %
3 2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0
3 1 .2 5 %
2 ,5 0 0 ,0 0 0
20X 8
L e s s p ro fit a lre a d y re c o g n is e d
P ro fit re c o g n is e d in ye a r
8 ,0 0 0 ,0 0 0
8 1 .2 5 %
6 ,5 0 0 ,0 0 0
2 ,5 0 0 ,0 0 0
4 ,0 0 0 ,0 0 0
20X 9
L e s s p ro fit a lre a d y re c o g n is e d
P ro fit re c o g n is e d in ye a r
8 ,0 0 0 ,0 0 0
1 .0 0
8 ,0 0 0 ,0 0 0
6 ,5 0 0 ,0 0 0
1 ,5 0 0 ,0 0 0
C o n tra c t P ric e
L e s s E s tim a te d c o s t
C o s ts to d a te
E s tim a te d c o s ts to c o m p le te
E s tim a te d to ta l c o s t
E s tim a te d to ta l g ro s s p ro fit/lo s s
P e rc e n t c o m p le te
G ro s s P ro fit re c o g n is e d in :
20X 7
3 2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0
1 0 0 .0 0 %
54
Solution – Case Study (b) cont.
2007
Dr
Cr
1 0 .0
1 0 .0
I
C o n s tru c tio n in p ro g re s s (A )
C a s h , a c c o u n ts p a ya b le e tc
T o re c o rd c o s ts in c u rre d
ii
A c c o u n ts re c e iva b le
B illin g s o n c o n tra c ts in p ro g re s s (-A )
T o re c o rd b illin g s to c u s to m e rs
8 .0
C ash
A c c o u n ts re c e iva b le
T o re c o rd c a s h c o lle c tio n s
8 .0
iii
iv
v
C o n s tru c tio n in p ro g re s s (A )
C o n s tru c tio n e x p e n s e s (E )
R e ve n u e fro m lo n g te rm c o n tra c ts (R )
T o re c o rd p e rio d ic in c o m e re c o g n is e d
B illin g s o n c o n tra c ts in p ro g re s s (-A )
C o n s tru c tio n in p ro g re s s (A )
T o re c o rd fin a l a p p ro v a l a n d a c c e p ta n c e
2008
Dr
Cr
1 6 .0
1 6 .0
2009
Dr
Cr
6 .0
6 .0
2 0 .0
1 2 .0
8 .0
2 0 .0
2 0 .0
8 .0
2 .5
1 0 .0
1 2 .0
2 0 .0
4 .0
1 6 .0
1 2 .5
1 2 .0
1 2 .0
1 .5
6 .0
2 0 .0
7 .5
4 0 .0
4 0 .0
55
Solution – Case Study (c) cont.
S tage of contract com pletion cannot be reliably determ ined
2007
Dr
iv
C onstruction in progress (A )
C onstruction expenses (E )
R evenue from long term contracts (R )
T o record periodic incom e recognised
2008
Cr
10.0
Dr
Cr
Dr
Cr
8.0
6.0
16.0
10.0
2009
16.0
14.0
56
Lecture Case Study – further
Assume the same facts as in the previous question,
except that XYZ now estimates at the beginning of the
2008 financial year that construction costs will be as
follows:
Year ending
30 June 2007
30 June 2008
30 June 2009
Cost
$10m
$21m
$15m
$46m
Required:
• Provide journal entries for each year assuming that
the percentage-of-completion method is used.
57
Solution – Case Study further
P A R T A (a )
2007
4 0 ,0 0 0 ,0 0 0
2008
4 0 ,0 0 0 ,0 0 0
2009
4 0 ,0 0 0 ,0 0 0
1 0 ,0 0 0 ,0 0 0
2 2 ,0 0 0 ,0 0 0
3 2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0
3 1 .2 5 %
3 1 ,0 0 0 ,0 0 0
1 5 ,0 0 0 ,0 0 0
4 6 ,0 0 0 ,0 0 0
-6 ,0 0 0 ,0 0 0
6 7 .3 9 %
4 6 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 0
3 1 .2 5 %
2 ,5 0 0 ,0 0 0
20X8
L e s s p ro fit a lre a d y re c o g n is e d
P ro fit re c o g n is e d in ye a r
-6 ,0 0 0 ,0 0 0
6 7 .3 9 %
-6 ,0 0 0 ,0 0 0
2 ,5 0 0 ,0 0 0
-8 ,5 0 0 ,0 0 0
20X9
L e s s lo s s a lre a d y re c o g n is e d *
P ro fit re c o g n is e d in ye a r
-6 ,0 0 0 ,0 0 0
1 .0 0
-6 ,0 0 0 ,0 0 0
-6 ,0 0 0 ,0 0 0
0
C o n tra c t P ric e
L e s s E s tim a te d c o s t
C o s ts to d a te
E s tim a te d c o s ts to c o m p le te
E s tim a te d to ta l c o s t
E s tim a te d to ta l g ro s s p ro fit/lo s s
P e rc e n t c o m p le te
G ro s s P ro fit re c o g n is e d in :
20X7
*2 5 0 0 0 0 0 + (8 5 0 0 0 0 0 )
4 6 ,0 0 0 ,0 0 0
-6 ,0 0 0 ,0 0 0
1 0 0 .0 0 %
S
Assuming stage of completion cannot be reliably determined
Accounting for construction contracts –
Definition of Loss
Accounting for long-term contract losses
When current estimates of total contract costs and
revenues for any contract indicate that a loss is
probable:
– Provision should be made for any foreseeable loss
on the contract regardless of the amount of work
already performed
– Loss is to be brought to account as soon as it is
foreseeable
Accounting for construction contracts –
Recognition of Expected Loss
Accounting for long-term contract losses (cont.)
AASB 111 (par. 36):
When it is probable that total contract costs will exceed total contract
revenue, the expected loss shall be recognised as an expense
immediately.
This is irrespective of whether work has commenced, the stage of
completion, contract costs or revenue from other contracts.
Accounting for construction costs – Recognition
of Loss
AASB 111 (par. 37):
Expected loss (excess of total contract costs over total contract
revenue) arising from a construction contract is recognised as an
expense irrespective of:
– whether work has commenced on the project
– the stage of completion of the activity; or
– the difference between total contract costs and total contract
revenue expected to arise from other construction contracts
Lecture Example 2.1 Part B
Accounting for construction contracts Disclosure
Disclosure requirements
• AASB 111 requires that the balance sheet or
accompanying notes:
– disclose the gross amount of work in progress (or
contract costs incurred)
– the related aggregate billings deducted from the work
in progress
Accounting for
construction contracts - Disclosure
Disclosure requirements (cont.)
• Work in progress will include the profit recognised throughout
the contract
• If progress billings exceed the gross amount of construction
work in progress, the net amount should be shown as a
liability or otherwise disclosed as an asset
• Disclosure requirements are outlined in AASB 111 (pars 39–
42)
• Appendix to AASB 111 provides an example of a disclosure
that might appear in an entity’s financial report
To do before next lecture

Chapter readings for this week’s topic

Independent study tasks
– individually attempt this topic’s independent study tasks and check your answers

Tutorial
-

Prepare answers in you log book and attend to check your work and understanding (ask
questions during class)
Topic consolidation
-
Attend a PASS session;
re-read or further reading;
Ask questions on MyLO discussion boards and/or in study groups;
If stuck, bring your workings/notes to staff consultation.

Pre-read next week’s chapter(s)

Ensure you have completed your essay assignment and lodged it on
time.
Next Week – Statement of Comprehensive Income
and Changes in Equity
Copyright notice
© Copyright University of Tasmania, School of Accounting & Corporate
Governance
All rights reserved.
Commonwealth of Australia Copyright Regulations 1969 - WARNING
This material has been reproduced and communicated to you by or on behalf of the University
of Tasmania pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this
communication may be subject to copyright under the Act. Any further reproduction or
communication of this material by you may be the subject of copyright protection under the Act.
Do not remove this notice.
66