Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p19
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 19/56)
Character Range: 311512–314622

this Standard, and AASB 1058 to an earlier reporting period, so long as they are applied together.

Illustrative examples
     BC63            The Board proposed a number of illustrative examples in ED 260 while noting that it was yet to determine where to locate each example; either to accompany AASB 1058 or as part of the guidance to AASB 15.  The Board noted it would decide on the location of the respective examples after it had received feedback on the ED.

     BC64            When reviewing the feedback on ED 260, the Board noted the majority of concerns were related to the 'enforceability' and 'sufficiently specific' guidance in the ED.  Consequently, the Board agreed that the examples accompanying the guidance should illustrate:

          (a)                    enforceability;

          (b)                   the application of the 'sufficiently specific' requirement; and

          (c)                    separating a component not attributable to the goods or services promised by the entity to its customer in a contract with a customer.

     BC65            The Board decided to add an example to those accompanying AASB 1058 that illustrates a transaction that includes a contract with a customer.  The example is intended to highlight when a transaction could include a contract with a customer and then direct users to the guidance accompanying AASB 15.  The Board decided the remaining topics covered by illustrative examples in ED 260 should accompany AASB 1058.

     BC66            When the Board developed the requirements in AASB 1058 for transfers of financial assets that enable an entity to acquire or construct a recognisable non-financial asset to be controlled by the entity, the Board initially did not limit the scope of the requirements only to recognisable assets.  Upon redeliberating the issue, the Board decided to limit the scope of the requirements to only those non-financial assets that could be recognised under another Australian Accounting Standard once acquired or constructed.

     BC67            As a consequence, the Board noted that some research grants would not necessarily be recognised as income over time as the research was performed.  Accordingly, the Board decided to develop further illustrative examples to those proposed in ED 260 to assist entities apply the requirements of AASB 15 to research grants.

     BC68            In its redeliberations, the Board identified three scenarios that could apply to research grants, depending on the terms and conditions of the grant, where the entity:

          (a)                    is required to transfer the intellectual property it develops to the grantor;

          (b)                   is required to provide a licence to the grantor for the intellectual property it develops; or

          (c)                    transfers benefits to the grantor that may or may not be immediately consumed.

     BC69            The Board decided to illustrate each of the above scenarios as examples, identifying the effect that various terms and conditions could have on whether revenue arising