Document ID: chunk:federal_register_of_legislation:F2022L00705:reg:4:p4
Version: federal_register_of_legislation:F2022L00705
Segment Type: reg
Provision Reference: reg 4 (pt 4/4)
Character Range: 11529–12400

agreed-upon years (AASB 15, paragraphs 10 and F10–F18).

    The organisation considers the guidance on accounting for non-refundable fees in AASB 15 paragraphs B48–B51 and refers to paragraphs 22–30 and F20–F27 to assess whether the upfront fee relates to the transfer of a good or service separate to the provision of services in the future.

    The organisation concludes that the non-refundable upfront fee does not relate to an activity that represents a separate performance obligation (AASB 15, paragraph 25), and therefore the fee is included in the consideration for the performance obligation(s) in the agreement (to provide future services). The upfront fee is treated as an advance payment for future services and is recognised as revenue over the period of the ongoing services (AASB 15, paragraphs 30 and B49).

Commencement of the legislative instrument