Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p3
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 3/56)
Character Range: 265928–269059

developing its income recognition requirements for 'non-exchange' transactions.

     BC5               The Board's proposals with respect to the accounting for income of not-for-profit entities finalised in this Standard were exposed for public comment in April 2015 as part of ED 260 Income of Not-for-Profit Entities.  In developing ED 260, the Board considered both the feedback received on the immediate predecessor Exposure Draft, ED 180 Income from Non-Exchange Transactions (Taxes and Transfers), and the requirements of AASB 15 Revenue from Contracts with Customers.  ED 260 proposed both revisions to the income recognition principles in AASB 1004, and development of guidance and illustrative examples to assist not-for-profit entities in implementing AASB 15.

     BC6               As part of its due process on this project, the Board held roundtables in Melbourne, Brisbane, Sydney and Canberra, and discussed the proposals at various forums, workshops and discussion groups.  In addition, to help ensure it considered implications of its proposals on entities with different objectives (eg charities, local government), the Board conducted several targeted meetings.  The Board received comments on its exposed proposals both formally via 34 submissions on the Exposure Draft, and informally via email, meetings with constituents, presentations to various bodies and social media.  About half the respondents to the Exposure Draft explicitly considered that overall, the proposals would result in financial statements that would be useful to users.  Other respondents were supportive of the Board's efforts in this area but considered that the proposals did not fully address the concerns noted in paragraph BC3.  Following the consultation period, and after considering constituent comments received, the Board decided to proceed with issuing revised principles for the recognition and measurement of income of not-for-profit entities.

     BC7               In response to the feedback received, the Board amended or clarified various proposals in the Exposure Draft as part of issuing the final guidance.  As part of its processes in this regard, the Board decided to establish a Project Advisory Panel consisting of preparers and advisors to provide input to the revised proposals.  The Board considered that, overall, its decisions on this project did not significantly depart from those exposed in a manner that adversely affects entities applying the Standard.  However, in order to satisfy itself that sufficient due process had been undertaken, the Board invited public comment on both a discussion draft before the Board at its August 2016 meeting and a fatal flaw draft – publicised via its weekly newsletter.

     BC8               The Board decided to finalise its proposals exposed in ED 260 by:

          (a)                    issuing AASB 1058 to address the accounting for income of not-for-profit entities.  The Standard establishes principles for not-for-profit entities that apply to transactions where the consideration to acquire an asset is significantly less than fair value principally