FINANCIALS 2018
AASB 15. These Standards supersede the NFP
income recognition requirements previously in
AASB 1004 Contributions (with the exception
of certain matters relating to public sector NFP
entities) as well as current revenue recognition
guidance including AASB 118 Revenue, AASB
111 Construction Contracts and the related
Interpretations when they become effective. financial statement elements (called ‘related
amounts’) should be recognised, such as:
(a) contributions by owners;
(b) r evenue, or a contract liability arising from a
contract with a customer;
(c) a lease liability;
(d) a financial instrument; or
(e) a provision.
The timing of income recognition depends on
whether such a transaction gives rise to a liability
or other performance obligations (a promise
to transfer a good or service), or a contribution
by owners, related to an asset (such as cash or
another asset) received by an entity. These related amounts are accounted for in
accordance with the applicable Australian
Accounting Standard.
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.
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).
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
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