Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:50
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 50
Character Range: 13796–14601

50                    It is important to distinguish contributions by owners from other contributions.  It may be argued that contributions that are provided on the condition that they be expended on assets that increase the capacity of the entity to provide particular services should be classified as contributions of equity.  However, such contributions would be contributions by owners, as defined in Appendix A to this Standard, only when the contributor establishes by way of the contribution a financial interest in the net assets of the entity that:

          (a) conveys entitlement both to a financial return on the contribution and to distributions of any excess of assets over liabilities in the event of the entity being wound up; and/or

          (b) can be sold, transferred or redeemed.