ACC206: Question 1 (a) Explain StarHub’s Revenue Recognition Policy of Mobile Revenue and Sales of Equipment: Financial Reporting Assignment, SUSS
|University||Singapore University of Social Sciences (SUSS)|
This group-based assignment surrounds StarHub Ltd (“StarHub”) Annual Report for the year ending 31 December 2019, unless stated in the questions. In your answers, you should make references to the Singapore Financial Reporting Standards (FRSs), if applicable. Please note that the content of the report is graded up to 90 marks. The remaining 10 marks are awarded at the discretion of the instructors for clarity, organisation, neatness, proper citation, compliance with instructions, etc.
(a) Explain StarHub’s revenue recognition policy of mobile revenue and sales of equipment. Demonstrate instances where management’s estimates are required to recognize mobile revenue and sales of equipment.
(b) Refer to the information about revenue and revenue recognition in Singtel’s Annual Report for the year ending 31 March 2020. Select any two (2) of the qualitative characteristics of financial information as describe in the Conceptual Framework for Financial Reporting, discuss how similarly/differently Singtel and StarHub applied each of the qualitative characteristics you select. The discussion does not need to cover all information regarding to revenue and revenue recognition, you might focus on a specific item on the notes to the financial statements and/or a specific source of revenue.
(c) StarHub’s statement of financial position has the item of contract assets (current or noncurrent). Read information related to StarHub’s use of contract assets, illustrate the accounting of contract assets by giving an example related to StarHub’s business, showing the necessary journal entries. Please state the difference between contract assets and trade receivables.
(a) StarHub recognized $2.6 million impairment losses in 2018. Appraise the most likely indication(s) that required management to assess the impairment for the annual report for the year ending 31 December 2018.
(b) Read StarHub’s significant accounting policies about intangible assets. Select two (2) types of intangible assets discussed. For each one, demonstrate the accounting policies by giving an example of related costs incurred but should be expensed off instead of being capitalised.
Illustrate Covid-19’s impact on StarHub’s financial reporting by selecting any three (3) accounts on StarHub’s statements of financial position or consolidated income statement that you estimate to be seriously affected by Covid-19. The accounts to be discussed shall be related.