Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p11
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 11/91)
Character Range: 36598–39412

15).  The obligation to acquire or construct the non-financial asset is accounted for similarly to a performance obligation under AASB 15.  For each obligation, the entity shall determine whether the obligation would be satisfied over time or at a point in time.  If an entity does not satisfy an obligation over time, the obligation would be satisfied at a point in time.
B17                An entity shall apply a single method of measuring progress for each obligation satisfied over time and the entity shall apply that method consistently to similar obligations and in similar circumstances.  At the end of each reporting period, an entity shall remeasure its progress towards complete satisfaction of each obligation that is satisfied over time, and shall recognise income over time on that basis.

Endowments
B18                An endowment is a transfer of an asset to an entity for the ongoing support of the entity's objectives, and may (but not necessarily) be made as part of a bequest.  An endowment may be made for the perpetual benefit of the entity in that the transfer is made with a requirement for the principal to be preserved, and only income earned on investment activity to be available for use in furthering the entity's objectives.
B19                An endowment may include conditions pertaining to investment of the principal and the purpose to which investment income must be applied.  For example, an endowment made to a university may be made on condition that the principal is invested and the investment income used for annual scholarships.  An entity shall consider whether the conditions of the transfer give rise to any related contribution by owners, liabilities or revenue that is recognised at the same time as the entity recognises an asset.  For example, an entity may determine the conditions give rise to a financial liability within the scope of AASB 9 for the obligation to provide a financial asset into the future, or a contract liability within the scope of AASB 15 for unperformed performance obligations relating to the transfer of goods or services under the terms of the endowment.

Bequests
B20                A bequest is a transfer made according to the provisions of a deceased person's will.  Whether the initial recognition of bequeathed items as assets in accordance with another Standard simultaneously gives rise to the recognition of income will depend on whether the entity recognises a liability, or other related amounts, as a result of the bequest.  For example, the terms of a bequest may establish a contract between an entity and the estate that is within the scope of AASB 15 and give rise to a contract liability.

Provisions

Constructive obligations
B21                When an entity recognises an asset in accordance with another Australian