FINANCIALS
KU
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These related amounts are accounted for in
accordance with the applicable Australian
Accounting Standard.
Key requirements of AASB 1058:
This Standard applies when a NFP entity receives
volunteer services or enters into other transactions
where the consideration to acquire an asset is
significantly less than the fair value of the asset
principally to enable the entity to further its
objectives. In the latter case, the entity recognises
and measures the asset at fair value in accordance
with the applicable Australian Accounting Standard
(e.g. AASB 116 Property, Plant and Equipment).
The Standard also prescribes specific accounting
requirements for a transaction which is a transfer
of a financial asset to enable an entity to acquire
or construct a recognisable non-financial asset to
be controlled by the entity (i.e. an in-substance
acquisition of a non-financial asset) and
volunteer services.
Entities can choose to apply this Standard
retrospectively (which requires restatement of
comparatives with certain practical expedients
allowed) or to use a modified approach
(where comparatives are not restated but the
cumulative effect of initial application will be
adjusted through opening retained earnings on
the date of initial application).
Upon initial recognition of the asset, this Standard
requires the entity to consider whether any other
financial statement elements (called ‘related
amounts’) should be recognised, such as:
(a) contributions by owners;
(b) revenue, or a contract liability arising from
a contract with a customer;
(c) a lease liability;
(d) a financial instrument; or
(e) a provision.
Consequential amendments to other Standards
and Interpretations:
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