Ann: Reissued Annual Report, page-2

Key audit matter How our audit addressed the key audit matter
Revenue from contracts with customers
The Group’s revenue is largely derived
from system implementation fees and
platform access fees charged to customers.
Management has determined that
contracts with Enterprise Channel
Customers, including implementation fees
and platform access fees, represent one
performance obligation, which is to
provide the platform services. This is
because the customer could not benefit
from the system on its own and separately
from the platform access.
The Group aggregates the fees received
from system implementation and platform
access and recognises revenue on a
straight-line basis from the start of the
hosting period until the expected end of
the hosting services. Fees received which
relate to the implementation phase are
recognised on the statement of financial
position as contract liabilities until hosting
commences at the ‘Go live’ date.
The Group’s revenue accounting policy is
set out in note 3 of the consolidated
financial statements.
Given the significance of the balances and
the judgements involved, this was
considered to be a key audit matter.
To assess the appropriateness of management’s
treatment of implementation fees and platform access
fees as one performance obligation, we:
• recalculated the revenue recognised in the year.
• read management's assessment of the application
of NZ IFRS 15 Revenue from Contracts with
Customers on the Group's new revenue
arrangement which went live during the year ended
31 March 2020.
• read the new material customer contract and
analysed management’s assessment of the technical
objectives, performance obligations and the
commercial factors of this arrangement against the
requirements of NZ IFRS 15.
• confirmed the date when the Group commenced
hosting services with evidence.
We considered alternative situations for the new
revenue contract, including whether there were
separate performance obligations for implementation
and platform access services or other performance
obligations that better reflected the terms of the
Group's revenue arrangement.
We have no matters to report.