Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:39
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 39
Character Range: 7883–8771

39                    A liability of a government department that is assumed by the government or other entity shall be accounted for as follows:
          (a)                   on initial incurrence of the liability by the government department, the government department shall recognise a liability and an expense;
          (b)                   on assumption of the liability by the government or other entity, the government department shall extinguish the liability and:
               (i) when the assumption is not in the nature of a contribution by owners, the government department shall recognise income of an amount equivalent to the liability assumed; or
               (ii) when the assumption of the liability is in the nature of a contribution by owners, the government department shall make a direct adjustment to equity of an amount equivalent to the liability assumed.