After much trial and error, I have managed to configure Raspberry Pi to function as a Bluetooth Audio Receiver, also known as A2DP Sink mode.
Much of the articles and configurations on the web are for older version of Debian (<=7.x) which worked correctly with older versions of PulseAudio (<=4.x), Alsa & Bluez (<=4.x).
The following configuration has been tested with latest release of Xbian, which is based on Debian Jessie (8.0) and Raspberry Pi 3, which comes with a built-in bluetooth module. Other compatible bluetooth modules should work as well. https://thecodeninja.net/sima-matchmaker/