Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p35
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 35/56)
Character Range: 355628–358543

same 10 per cent fee was also payable as a tax for entities that undertook equivalent betting activities for which it was unnecessary for the entity to be licensed (for example, an online betting agency that does not require a licence to open a gaming venue).

     BC61            In the scenario noted in paragraph BC60(a), the Board noted that in accordance with the requirements in paragraph 17 of AASB 15, although there may be two agreements entered into by the licensor with the licensee (one for the licence and another labelled as 'tax'), these agreements should be combined and considered as one 'contract' or arrangement (ie licencing arrangement) if they are entered into at or near the same time with the same customer and negotiated as a package with a single commercial (or regulatory) objective.

     BC62            However, in the scenario noted in paragraph BC60(b), the Board observed there was an identifiable element that is a tax that can be readily separated. Noting that the rebuttable presumption is intended to make the accounting simpler for preparers (reducing the burden of determining how to split the elements of the transaction), the Board decided that where there is a readily identifiable generic tax element, it would not be onerous for an entity to disaggregate it. To give effect to this decision, the Board added an additional circumstance rebutting the presumption that the transaction price should not be allocated in paragraph G5(b) when there is other evidence supporting similar transactions effected through different structures are taxed.

Accounting for revenue from licences in accordance with AASB 15 – alternatives considered
     BC63            The above has outlined the bases for the Board's decisions about the types of arrangements entered into by NFP public sector entities that could be subject to the principles in AASB 15. The following outlines the bases for the Board's decisions about how to give effect to those decisions.

What are the types of public sector licences?
     BC64            In order for the Board to decide on the best option for accounting for revenue from licences issued by NFP public sector licensors, the Board noted the three possible types of public sector entity licences:

          (a)                    IP licences (which would be either a right to use or a right to access intellectual property);

          (b)                   Non-IP licences involving rights over an asset or assets of the licensor; and

          (c)                    Non-IP licences involving the right to perform an activity.

Applying specific guidance for IP licences in AASB 15 to various examples of licences
     BC65            In ED 283 the Board considered whether the specific guidance for private sector IP licences in paragraphs B52–B63B of AASB 15 could be easily applied by analogy to examples of non-IP licences (that both involve