Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p22
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 22/56)
Character Range: 320231–323428

the nature of the right created by a licence – whether the licence confers the right to use or access a licensor's asset, or confers a right to perform an activity where there is no licensor asset involved, and whether different accounting treatments for revenue from such licences are appropriate;

          (b)                   whether the scope of AASB 15 should be expanded to encompass non-contractual licences issued under statute and/or non-IP licences; and

          (c)                    whether the guidance in AASB 15 specifically for IP licences is appropriate for all licences issued by not-for-profit public sector entities.

Issue of ED 283 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Public Sector Licensors
     BC8               The Board's proposals were exposed for public comment in December 2017 as part of ED 283 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Public Sector Licensors. In developing the proposals, the Board considered past research undertaken as part of its AASB 1058 and AASB 1059 projects, as well as a number of public AASB meeting Agenda Papers that considered the application of existing accounting Standards (see paragraphs BC31–BC52). ED 283 proposed guidance that would clarify the application of AASB 15 to licences that did not fall within the scope of any other Australian Accounting Standard.

     BC9               Between issuing ED 283 and finalising the Standard, the Board held targeted outreach with key stakeholders in the NFP public sector, including state and national treasuries, audit offices, accounting firms, the Australian Bureau of Statistics (ABS), credit rating agencies, and representatives of the Australasian Council of Public Accounts Committees (users of NFP public sector financial statements). The ED proposals were also presented at various forums, workshops and discussion groups.

     BC10            The Board received feedback on its proposals through receipt of 8 formal comment letters on ED 283. The Board also obtained feedback via means such as email, meetings with constituents and feedback from external presentations. The responses to ED 283 indicated that:

          (a)                    the majority of respondents agreed revenue from non-IP licences should be accounted for in accordance with the general principles of AASB 15 (but not the specific guidance provided for IP licences). However, despite support in principle, numerous respondents raised concern with the outcome of applying the principles in AASB 15, in particular for high-value long-term licences such as casino licences (discussed further in BC84);

          (b)                   some respondents sought clarification of the distinction between licences and taxes, and recommended aligning the distinction between a licence and tax more closely with the definitions of the ABS's Government Finance Statistics (GFS) Manual to allow for the harmonisation of the two frameworks; and

          (c)                    some respondents raised concerns with the proposal to allocate the transaction wholly to a promise