Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p8
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 8/91)
Character Range: 28128–31315

this Standard to assist in its application.

Chart 1 – Transactions other than Volunteer Services

Chart 2 – Volunteer Services
Scope (paragraph 7)
B2                   This Standard provides guidance for transactions where on initial recognition of an asset the consideration for that asset was significantly less than fair value principally to enable the entity to further its objectives, and for volunteer services.  Examples include:
(a)                    cash and other assets received from grants, bequests or donations;
(b)                   receipts of appropriations by government departments and other public sector entities;
(c)                    receipts of taxes, rates or fines; and
(d)                   assets acquired for nominal or low amounts.
B3                   Where an asset is acquired for consideration that is significantly less than fair value but that difference is not principally related to furthering the entity's objectives, the transaction is not within the scope of this Standard.  Examples of such transactions include:
(a)                    distress sales; and
(b)                   trade discounts.
B4                   When assessing whether the consideration for an asset is less than fair value principally to enable the entity to further its objectives, the entity may consider whether another entity could have obtained the asset under the same terms and conditions.  If those terms and conditions are generally not available to other entities of the same class/nature, it is more likely that the difference between the consideration for the asset and the fair value of the asset acquired is principally for enabling the entity to further its objectives.  For example, trade discounts available to all not-for-profit entities, but not to for-profit entities, are not considered principally to further the specific not-for-profit entity's objectives.
B5                   Where the consideration provided under a transaction solely involves performance obligations recognised in accordance with AASB 15, the asset is not acquired for consideration that is significantly less than fair value.  Therefore, the transaction is not within the scope of this Standard.
B6                   Transfers with consideration significantly less than fair value primarily to enable a not-for-profit entity to further its objectives may be called grants, bequests, donations or appropriations and are usually made voluntarily.  Such transfers could be in the form of cash or another financial asset, goods, or volunteer services, and may or may not be made with restrictions or conditions on their use.  Transactions may include elements with consideration that is significantly less than fair value primarily to enable the not-for-profit entity to further its objectives and other elements with consideration at fair value.  For example, a donation by a customer may be present in a contract in which a customer promises consideration in exchange for goods or services (eg a fundraising dinner).
B7                   Volunteer services are services transferred by individuals or other entities without charge or for consideration significantly less than the