Business Report

[Name of the author]

Summary1

Introduction1

Revenue1

History and initial days of IFRS in Australia2

Recognition of Revenue3

International Accounting Standards Board3

IASB in Australia4

Future4

Conclusion and Recommendation5

References6

Executive Summary

Revenue recognition programs set recently in the Australian economy have diverted the attention of all the concern businesses on a great scale. Brisbane office is much concern about the changes which are occurring in the economy and is updating its operations in accordance to all of them. There are various bodies related to reporting standards running in the globe. There is a substantial need of reporting all the accounting heads inclusive of revenues in a better way for making the economic cycles in the relative economy more benefitted. This paper has made the fact even clearer that the financial reporting and standards realated to them globally have improved so much in past few years. This is basically due to the fact that their is a global acceptance and formation of these newly fomed bodies. There is a considerable amount of need of reporting all these accounting heads, this must be including of revenues more clearly for making the economic cycles in the particulareconomy more efficiently done. It is recommended in the end the setting up a standardise method around the globe is really essential.

Business Report

Introduction

This report is made to give an overview of the revenue recognition project of IASB. This project is making the client concerned about the probable changes which may occur nearby. An over viewing of all of those expected changes will lead the readers know all what may occur to the standards and their implementations. A concise history of the Australian policies for the accounting of revenues is going to be discussed in this paper. Furthermore the paper will look on the ways adopted for recognition of revenues and future developments in the global operations related to the standard making bodies will also be discussed.

Revenue

The standard definition for revenue according to the Australian accounting standard board is, “Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants”.

Income is basically a framework which is made for the presentation of the financial statements of any organisation. It shows the increased economic profits generated by the organisation, assets which are gained or sometime enhanced and also the reduction in liabilities is a part of it. The term income is inclusive of both gains and the revenue of the organisation which is under consideration (Australian Accounting Standards Board, 2010).

History and initial days of IFRS in Australia

A substantial need of a standard body like IFRS was felt in Australia in the mid of 1970s. The revelation of 1976's compatibility document showed that how compatible the accounting standards were with the international standards. This was a statement of policy by ASA and ICAA4. In spite of that, the accountancy bodies remained as the ultimate authority for the financial reporting standards of ...