Urbanise.com Annual Report 2019

3. Changes in accounting policies and disclosures (continued) AASB 15 Revenue from Contracts with Customers Effective 1 July 2018, the Group adopted AASB 15 using the modified retrospective method, with the effect of adopting this standard recognised on 1 July 2018, the date of initial application. Accordingly, the information presented for 2018 has not been restated. It remains as previously reported under AASB 118 – Revenue and related interpretations. In its adoption of AASB 15, the Group has elected to apply the requirements of the new standard only to contracts that are incomplete at the date of initial application. AASB 15 supersedes AASB 111 Construction Contracts , AASB 118 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers. AASB 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. AASB 15 requires entities to exercise judgement, taking into consideration all the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. In accordance with the new AASB 15 requirements, the impact on adoption on the consolidated statement of comprehensive income for the year ended 30 June 2018 and statement of financial position as at 30 June 2018 was as follow: Statement of comprehensive income Revenue from contracts with clients Year ended 30 June 2019 AASB 15 $ Previous AASB $ Increase/ (decrease) $ Platform licence and activation fee 6,167,792 5,746,695 421,097 Loss for the year attributable to members (4,754,740) (5,175,837) 421,097 Basic and diluted EPS (cents per share) (0.74) (0.81) 0.07 The impact on transition at 1 July 2018 was to reduce accumulated losses by $421,097, and an increase of deferred revenue of the same quantum. Adjustment – Accounting for Regional Operator Licence (ROL) fees. Under AASB 118, revenue in relation to certain ROLs was recognised at the point in time. Under AASB 15, the Group has determined that a number of these arrangements result in the end customer having the right to access the licence, rather than having the right to use the licence. The ongoing support and upgrades are fundamental to the ongoing use of the licences by the end customer. As a result, revenue is recognised over time. There is no material impact on the statement of cashflows. AASB 9 Financial Instruments (“AASB 9”) AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. The Group currently does not hedge any transactions. The Group has applied AASB 9 retrospectively. The initial application date for the Group was 1 July 2018. Adoption of AASB 9 has resulted in no adjustment to the financial statements at 1 July 2018. a) Classification and measurement Except for certain trade receivables, under AASB 9, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, directly attributable transaction costs. Notes to the Consolidated Financial Statements for the year ended 30 June 2019 (continued) 53