Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p41
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 41/91)
Character Range: 118029–121103

A accounts for the peppercorn lease in accordance with the transition requirements of AASB 1058 by:

                    recognising the right-of-use asset for the land as at 1 July 2019 at the fair value of $2 million;

                    recognising the lease liability under AASB 16 of $100 (this accounting treatment is unaffected by AASB 1058); and

                    recognising the difference between the fair value of the right-of-use asset and the lease liability as an adjustment to the opening balance of School A's retained earnings as at 1 July 2019.

    Accounting treatment

    The journal entry for the accounting is:

     1 July 2019 Debit Credit

     Right-of-use asset – land 2,000,000

      Lease liability  100

     Opening retained earnings  1,999,900

Compilation details
Accounting Standard AASB 1058 Income of Not-for-Profit Entities (as amended)
Compilation details are not part of AASB 1058.
This compiled Standard applies to annual periods beginning on or after 1 January 2023 but before 1 July 2026.  It takes into account amendments up to and including 15 December 2022 and was prepared on 6 February 2023 by the staff of the Australian Accounting Standards Board (AASB).
This compilation is not a separate Accounting Standard made by the AASB.  Instead, it is a representation of AASB 1058 (December 2016) as amended by other Accounting Standards, which are listed in the table below.

Table of Standards
Standard     Date made     FRL identifier  Commence-ment date  Effective date           Application, saving or transitional provisions
                                                               (annual periods
                                                               … on or after …)
AASB 1058    9 Dec 2016    F2017L00042     31 Dec 2018         (beginning) 1 Jan 2019   see (a) below
AASB 17      19 Jul 2017   F2017L01184     31 Dec 2022         (beginning) 1 Jan 2023   see (b) below
AASB 2018-3  8 Aug 2018    F2018L01152     31 Dec 2018         (beginning) 1 Jan 2019   see (c) below
AASB 2018-8  24 Dec 2018   F2019L00023     31 Dec 2018         (beginning) 1 Jan 2019   see (d) below
AASB 2019-6  16 Dec 2019   F2020L00055     31 Dec 2019         (beginning) 1 Jan 2019   see (c) below
AASB 1060    6 Mar 2020    F2020L00288     30 Jun 2021         (beginning) 1 Jul 2021   see (e) below
AASB 2021-7  20 Dec 2021   F2021L01883     31 Dec 2021         (beginning) 1 Jan 2022   see (f) below
AASB 2022-8  15 Dec 2022   F2023L00014     31 Dec 2022         (beginning) 1 Jan 2023   see (g) below
AASB 2022-9  15 Dec 2022   F2023L00015     30 Jun 2026         (beginning) 1 Jul 2026   not compiled*

   * The amendments made by this Standard are not included in this compilation, which presents the principal Standard as applicable to annual periods beginning on or after 1 January 2023 but before 1 July 2026.

   (a)           Entities may elect to apply this Standard to annual periods beginning before 1 January 2019, provided that AASB 15 Revenue from Contracts with Customers is also applied to the same