Question

Examine and explain the key areas of concern and issues in applying IFRS 15 for the 2020 financial year for Genting Singapore, including the reasons why you think so. Support your arguments clearly with reference to the company’s financial reports and literature reviews of other publicly available reports / journals / documents.

Answer 1

Ans :Based on review of financial statement of Genting Singapore following can be summerised

Revenue attributable to the award of benefits measured at fair value is deferred until they are utilised. Revenue is shown as net of goods and services tax, and discounts and after eliminating sales within the Group.

Gaming revenue represents net house takings, which is the aggregate of wins and losses arising from gaming play, and is reported after deduction of goods and services tax, commissions, discounts and loyalty points awarded to customers.

Complimentary goods or services provided by the Group is allocated to the appropriate revenue type based on the goods and services provided, at the standalone selling price of each good and service.

Hotel room revenue is recognised at the time of room occupancy.

Attraction revenue is recognised when tickets are used. Revenue from annual passes is amortised over the period of their validity.

Food and beverage and retail sales are recognised when goods are delivered or services are rendered to the customers.

Rental income from retail outlets, net of any incentives given to the lessee, is recognised on a straight-line basis over the period of the respective lease terms.

Key areas in revenue recognition in Genting Singapore are contract revenue which are not yet completed and in running and revenue from gaming.