Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p5
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 5/56)
Character Range: 271684–275005

receivables.

     BC11            Accordingly, the Board decided to amend AASB 9 to require that non-contractual receivables arising from statutory requirements should initially be measured in accordance with that Standard as if those receivables were financial instruments.  The Board considered whether the subsequent measurement requirements of AASB 9 should also apply to statutory receivables; however, the Board noted:

          (a)                    constituent feedback indicating the impact of the subsequent measurement requirements of AASB 9 needs further consideration; and

          (b)                   the International Public Sector Accounting Standards Board (IPSASB) had recently embarked on its Public Sector Specific Financial Instruments project to consider requirements for public sector financial instruments that are not within the scope of IFRS 9 Financial Instruments.

     BC12            Accordingly, the Board decided not to require entities to apply the subsequent measurement requirements of AASB 9 to statutory receivables.  Instead, the Board decided to monitor the IPSASB's project and consider the subsequent measurement of statutory receivables in a future project.

     BC13            The Board noted that applying AASB 9 only for initial recognition of non-contractual statutory receivables could cause confusion and therefore decided to add guidance to accompany AASB 9.

     BC14            The Board decided not to address non-contractual payables at this stage, given the scope of the project is related to income of not-for-profit entities.  However, the Board decided to consider non-contractual payables at a future date while monitoring the work of the IPSASB on its public sector specific financial instruments project.

Amendments to AASB 15
     BC15            The Board conducted a comprehensive review of AASB 15 to determine where additional not-for-profit guidance might be required.  As a result, the Board decided to develop guidance for not-for-profit entities including addressing:

          (a)                    how not-for-profit entities should apply terminology used in AASB 15;

          (b)                   when an agreement with another party creates enforceable rights and obligations; and

          (c)                    how to identify when performance obligations exist, requiring a promise to transfer a good or a service to be specified in sufficient detail to be able to determine when the obligation is satisfied.

     BC16            In addition to the guidance mentioned above, the Board also decided to make some amendments to the body of AASB 15:

          (a)                    to require that transfers which enable an entity to acquire or construct a non-financial asset to be controlled by the entity be accounted for in accordance with AASB 1058, not AASB 15; and

          (b)                   to clarify that any contract that is not enforceable or does not contain sufficiently specific performance obligations is not within the scope of AASB 15 for not-for-profit entities.

     BC17            The Board observed that not-for-profit entities might receive transfers of financial assets that the entity must use to acquire or construct a non-financial asset that the entity will control.  The Board noted various