Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p3
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 3/91)
Character Range: 13629–16811

Standard requires the entity to initially recognise a liability representing the entity's obligation to acquire or construct the non-financial asset and, if applicable, other performance obligations under AASB 15, which involve the transfer of goods or services to other parties.  The liability in relation to acquiring or constructing the non-financial asset is initially measured at the carrying amount of the financial asset received from the transferor that is not attributable to related amounts for performance obligations under AASB 15, contributions by owners, etc.  The liability is recognised until such time when (or as) the entity satisfies its obligations under the transfer.

Volunteer services

     18                    Local governments, government departments, general government sectors (GGSs) and whole of governments shall recognise an inflow of resources in the form of volunteer services as an asset (or an expense, when the definition of an asset is not met) if:

(a)                   the fair value of those services can be measured reliably; and

(b)                   the services would have been purchased if they had not been donated.

     19                    Any not-for-profit entity (including those listed in the preceding paragraph) may, as an accounting policy choice, elect to recognise volunteer services, or a class of volunteer services, if the fair value of those services can be measured reliably, whether or not the services would have been purchased if they had not been donated.

     20                    Some volunteer services, such as professional services, might have readily observable market prices.  In such circumstances, obtaining a reliable measure of fair value would be relatively straightforward.  An entity is not required to perform an exhaustive search for volunteer services that might meet the recognition criteria in this Standard.  Volunteer services that would have been purchased if they were not donated should be readily identifiable from the entity's operational requirements.

     21                    Recognised volunteer services shall be measured at fair value.

     22                    On the initial recognition of volunteer services as an asset or an expense, an entity shall recognise any related amounts in accordance with paragraph 9 (such as contributions by owners or revenue) and the applicable Australian Accounting Standards.  The entity shall recognise the excess of the fair value of the volunteer services over the recognised related amounts as income immediately in profit or loss.

Disclosure

     23                    The objective of the disclosure requirements is for an entity to disclose sufficient information to enable users of financial statements to understand the effects of volunteer services and other transactions where an entity acquires an asset for consideration that is significantly less than fair value principally to enable the entity to further its objectives on the financial position, financial performance and cash flows of the entity.  Paragraphs 24–41 specify requirements relating to this objective.

     24                    An entity shall consider