The case is on revenue recognition at Harvard Business Publishing. Although this is a US company,...

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The case is on revenue recognition at Harvard Business Publishing. Although this is a US company, the revenue recognition model is generally the same under the US GAAP and Australia accounting standards (AASB). Please apply AASB in the case analysis. QUESTIONS (1) Use the five-step model to compare revenue recognition between the two versions. (15%) Steps 1. Contract 2. Performance Obligation 3. Contract price 4. Allocate price 5. Recognize revenue HMM11 HMM12 (2) Consider the example on p.4 of the case, the last paragraph under the Section "Revenue Recognition for HMM", how would you account for the revenue from a contract for HMM11 products? How would you account for the revenue from a contract for HMM12 products? (3) Why does HBP recognize deferred revenue? (4) Does the accounting change in revenue recognition for HMM12 matter to managers of HBP? (20%) (20%) (15%) Students should try to access at least two articles (either commentary from professional accountants, or academic research articles) to support your answers to Question (4). (Hint: Concentrate on the general results of the articles. You do not have to completely understand the statistical/econometric models). (10%) COMMUNICATIONS Grammar, spelling, and paragraph structures. Please refer to the following marking rubric for more detailed criteria. (20%) n T P Ļ d 4. u d The case is on revenue recognition at Harvard Business Publishing. Although this is a US company, the revenue recognition model is generally the same under the US GAAP and Australia accounting standards (AASB). Please apply AASB in the case analysis. QUESTIONS (1) Use the five-step model to compare revenue recognition between the two versions. (15%) Steps 1. Contract 2. Performance Obligation 3. Contract price 4. Allocate price 5. Recognize revenue HMM11 HMM12 (2) Consider the example on p.4 of the case, the last paragraph under the Section "Revenue Recognition for HMM", how would you account for the revenue from a contract for HMM11 products? How would you account for the revenue from a contract for HMM12 products? (3) Why does HBP recognize deferred revenue? (4) Does the accounting change in revenue recognition for HMM12 matter to managers of HBP? (20%) (20%) (15%) Students should try to access at least two articles (either commentary from professional accountants, or academic research articles) to support your answers to Question (4). (Hint: Concentrate on the general results of the articles. You do not have to completely understand the statistical/econometric models). (10%) COMMUNICATIONS Grammar, spelling, and paragraph structures. Please refer to the following marking rubric for more detailed criteria. (20%) n T P Ļ d 4. u d

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1 Comparison of revenue recognition between US GAAP and AASB using the fivestep model Step 1 Contract Under both US GAAP and AASB revenue is recognized when a contract exists between the company and t... View the full answer