Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:44:p11
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 44 (pt 11/15)
Character Range: 51666–54731

observed that the approach in AASB 1004 does not acknowledge that a non-reciprocal transfer may be made on terms and conditions representative of a liability as defined in the Framework for the Preparation and Presentation of Financial Statements.
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     Issue of ED 260
BC21 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 ED 180 and the requirements of AASB 15.  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.
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BC24 The Board received feedback on its proposals through receipt of 34 formal comment letters on ED 260.  The Board also obtained feedback via means such as 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.  Many respondents to ED 260 expressed support for no longer basing income recognition requirements on a reciprocal/non-reciprocal transfer distinction as previously specified by AASB 1004, but on requirements based on satisfying a performance obligation.
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     Finalisation of ED 260
BC28 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 largely as exposed.  The Board considered the identified benefits of the revised requirements to exceed the costs of the revised requirements.
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BC32 The Board considered that, overall, its decisions on this project have not significantly departed from those exposed in a manner that adversely affects entities applying the Standard.  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 to enable a not-for-profit entity to further its objectives, and to the receipt of volunteer services;
(b) issuing AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities to add implementation guidance and illustrative examples to AASB 15 to assist not-for-profit entities in applying the Standard.  In addition, AASB 2016-8 adds implementation guidance to AASB 9 on the initial measurement and recognition of non-contractual receivables arising from statutory requirements;
(c) retaining AASB 1004 Contributions, amended to exclude transactions now addressed by AASB 1058; and
(d) issuing AASB