🇦🇺Australia

AASB 15 Misallocation Penalties

2 verified sources

Definition

Consulting contracts with bundled services (e.g., advisory + implementation) require precise allocation; manual errors trigger ATO audits during BAS/GST reporting.

Key Findings

  • Financial Impact: AUD 10,000+ per audit failure; 5-10% revenue restatement
  • Frequency: Annual financial audits; quarterly BAS
  • Root Cause: Lack of visibility into standalone selling prices

Why This Matters

The Pitch: Operations Consulting players in Australia 🇦🇺 face AUD 10,000+ ATO penalties for revenue misstatements. Automation of price allocation prevents this.

Affected Stakeholders

CFO, Billing Specialist, External Auditor

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Delayed Revenue Recognition under AASB 15

20-40 hours/month manual reconciliation; 2-5% revenue timing distortion

Unbilled Milestones in Projects

2-5% project revenue unbilled annually

ATO Penalties for Revenue Misrecognition

AUD 222 base penalty + 2% p.a. GIC per late BAS; up to AUD 5,500 for significant shortfalls

Change Management Overtime Costs

AUD 20-50 hours/consultant per project in overtime; 10-15% cost overrun on training delivery[2][3]

Training Rework Penalties

AUD 50,000-200,000 per failed project in rework and refunds; 5-10% of project value[2][5]

Delayed Consulting Invoicing

30-60 days extended AR; 2-5% revenue leakage on unbilled hours (AUD 10,000-50,000/project)[2]

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