Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p20
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 20/56)
Character Range: 314354–317515

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 from the grant is recognised over time, or at a point in time when a performance obligation is satisfied.

Comparison with International Public Sector Accounting Standards
     BC70            As part of its deliberations, the Board considered the accounting for income of not-for-profit entities specified by the International Public Sector Accounting Standards Board (IPSASB).  The Board noted the following International Public Sector Accounting Standards (IPSAS) specified the accounting in this regard:

          (a)                    IPSAS 9 Revenue from Exchange Transactions;

          (b)                   IPSAS 11 Construction Contracts; and

          (c)                    IPSAS 23 Revenue from Non-exchange Transactions (Taxes and Transfers).

     BC71            The Board observed IPSAS 9 and IPSAS 11 are based on the principles of superseded IAS 18 Revenue (incorporated into AASB 118 Revenue) and IAS 11 Construction Contracts (incorporated into AASB 111 Construction Contracts), rather than those of IFRS 15 Revenue from Contracts with Customers (incorporated into AASB 15).  In addition, it noted that IPSAS 23 was issued prior to the issue of IFRS 15. The requirements of IPSAS 23 were therefore not necessarily developed with reference to similar principles to IFRS 15.  The Board concluded these IPSASB Standards do not provide an appropriate basis for financial reporting in the Australian environment, particularly because they require different income recognition depending on whether the transaction is an exchange transaction or a non-exchange transaction, and IPSAS 9 and IPSAS 11 adopt a 'risks and rewards' approach that is not consistent with the performance obligation approach in IFRS 15.

     BC72            The Board further noted the IPSASB is currently developing proposals for the accounting for non-exchange expenses.  The IPSASB is also developing a related project on revenue, which uses IFRS 15 as a starting point and looks at the type of modifications that would be required for IFRS 15 to be suitable for application to a wide range of revenue transactions in the public sector.  This may result in revisions to, or a replacement of, the existing IPSASB revenue recognition requirements.  The IPSASB expects to complete these projects in 2019.  The Board noted that it would consider undertaking a project to review the guidance to AASB 15 following the completion of these projects.

Basis for Conclusions on AASB 2018-4
This Basis for Conclusions accompanies, but is not part of, AASB 15.  The Basis for Conclusions was originally published with AASB 2018-4 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Public Sector Licensors.

Introduction
     BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the