Urbanise.com Annual Report 2019

Independent Auditor’s Report to the members (continued) A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Page 3 Why significant How our audit addressed the key audit matter that is, those that have the most significant effect on the determination of the recoverable amount of intangible assets (including goodwill). 2. Revenue recognition Why significant How our audit addressed the key audit matter Revenue recognition was considered a key audit matter due to the inherent complexity of a Software as a Service (“SaaS”) business, where the terms and conditions contained in individual customer agreements are important to determine the timing of revenue recognition. Further, in the Group’s industry a variety of customer contracts and revenue arrangements may be entered into that require careful consideration and judgement to determine when revenue should be recognised. There is a risk that revenue could be recorded in the incorrect year or misstated due to the judgmental nature of revenue recognition for contracts containing multiple services. The Group adopted AASB 15 Revenue from contracts with customers (“AASB 15”) effective 1 July 2018. We assessed the appropriateness of the Group’s revenue recognition accounting policies and assessed compliance with the Group’s accounting policies and Australian Accounting Standards. We evaluated management’s assessment of customer contracts in relation to the transition to AASB 15. We used data analysis techniques, such as correlation analysis, to assess the recognition of revenue during the year. We tested whether revenue had been correctly recorded during the period for a sample of revenue transactions, considering the terms of the underlying customer contract. We also tested a sample of transactions, both prior to and subsequent to the balance sheet date, to assess whether revenue was recognised in the appropriate period. We analysed credit notes issued to customers subsequent to year end and considered whether these related to sales recognised in the financial year ended 30 June 2019. We also assessed the Group’s adequacy of disclosures in regards to revenue in Note 3 of the financial report. 87