Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p18
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 18/56)
Character Range: 308653–311765

Board decided it had already considered any not-for-profit entity-specific disclosure issues in AASB 15 as part of its process for developing Tier 2 reporting requirements for that Standard.  Accordingly, the Board decided not to make any amendments to the disclosure requirements in AASB 15 for not-for-profit entities.

Effective date
     BC60            The Board proposed in ED 260 that AASB 1058 and this Standard apply when AASB 15 is applied or operative, which is from 1 January 2018.  Constituents raised concerns on that proposal, noting (among others):

          (a)                    general uncertainty in the not-for-profit sector about the accounting requirements that would apply given the Board's work on this project and the various proposals made over the lifetime of the project;

          (b)                   when AASB 1058 is issued not-for-profit entities will need to determine its interaction with AASB 15 and other Australian Accounting Standards.  With a proposed effective date of 1 January 2018, not-for-profit entities were concerned that their lead-time to apply the requirements would be significantly less than that provided to for-profit entities to apply AASB 15; and

          (c)                    AASB 1058 permits a greater number of other Australian Accounting Standards to apply to transactions that were previously solely in scope of AASB 1004.  Not-for-profit entities commented that they needed further time to understand the interaction of those Standards with their transactions that previously were solely accounted for under AASB 1004.

     BC61            The Board agreed with constituents and decided to defer the application date of AASB 1058 by one year to 1 January 2019.  In making this decision the Board also considered whether it should defer the application date of AASB 15, including the application guidance in this Standard, by one year for not-for-profit entities.  The Board noted that having different application dates for AASB 1058 and AASB 15 would, among other issues:

          (a)                    introduce a period where entities recognise revenue in accordance with AASB 15 and apply AASB 1004 to other transactions outside the scope of AASB 15; and

          (b)                   potentially require entities to re-evaluate their contracts with customers for donation elements when applying AASB 1058 in a later period, thereby lengthening the transition process.

     BC62            Consequently, the Board also deferred the application date of AASB 15 to 1 January 2019 for not-for-profit entities.  In deferring the application date of AASB 15 the additional guidance for not-for-profit entities will also be deferred.  However, the Board decided to retain the ability for entities to apply AASB 15, including the additional guidance for not-for-profit entities in this Standard, and AASB 1058 to an earlier reporting period, so long as they are applied together.

Illustrative examples
     BC63            The Board proposed a number of illustrative examples in ED 260 while noting that it was yet to determine where