Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p50
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 50/56)
Character Range: 397282–400250

a large volume of tailored or non-standard contracts to assess. Many stakeholders in the university sector and medical research sector have December year-ends. With limited time left for the sector to tackle the significant implementation challenges and uncertainty as to the requirements to be applied,  permitting not-for-profit entities to apply the Standards to research grants from periods beginning on or after 1 July 2019 rather than 1 January 2019 will provide the sector with additional implementation time and will not affect preparers with June year-ends. The extended implementation period would also give the Board an opportunity to provide further educative materials to assist with implementation.

     BC8               The extended implementation period for research grants applies to the accounting for both income relating to research grants (including revenue) and contract costs relating to research grants. Not-for-profit entities can elect whether to apply AASB 15 and AASB 1058 to all research grants, or to apply the previously applicable Standards to them, until periods beginning on or after 1 July 2019, when AASB 15 and AASB 1058 will have to be applied. The Board considered whether to define 'research grants' and decided that it would not be feasible to clearly define the term, but noted the numerous examples of research grants provided in the Illustrative Examples accompanying AASB 15. The Board noted the exemption does not apply on an individual research grant basis as such an exemption would significantly impair the consistency and comparability of an entity's results.

     BC9               The Board considered whether to defer the application of AASB 15 and AASB 1058 in their entirety for all not-for-profit entities. However, the Board noted that such an approach would have implications for AASB 16, as AASB 16 includes references to AASB 15. For example, AASB 16 requires an entity to assess whether a transfer of an asset in a sale and leaseback transaction is a sale under AASB 15 (ie when a performance obligation is satisfied). The Board decided that the better approach was to permit delayed implementation of the Standard for research grants, being the area of most concern in applying the Standard.

Basis for Conclusions on AASB 2022-3

This Basis for Conclusions accompanies, but is not part of, AASB 15.  The Basis for Conclusions was originally published with AASB 2022-3 Amendments to Australian Accounting Standards – Illustrative Examples for Not-for-Profit Entities accompanying AASB 15.

Introduction
     BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard. It sets out the reasons why the Board developed the Standard, the approach taken to developing the Standard and the bases for the key decisions made. In making decisions, individual Board members gave greater weight to some factors