Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p48
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 48/56)
Character Range: 391699–394735

and GAAP would likely be aligned.

     BC103        The Board considered its policy on GAAP/GFS harmonisation. Consistent with the rationale provided in paragraph BC25, and consistent with AASB 1058, the Board considered that it was not appropriate to amend its decisions reflected in this Standard in order to achieve full GAAP/GFS harmonisation. The Board also noted that the key difference is caused by a difference in the Board's view of a tax (and the definition of a tax in AASB 1058), and the underlying principles to distinguish licences from taxes in the GFS Manual. Further, some differences could only be addressed by making changes to the underlying principles in AASB 1058 and AASB 15. The Board noted that AASB 1049 Whole of Government and General Government Sector Financial Reporting requires entities to identify and explain any differences arising from different requirements in GAAP as compared to GFS.

Basis for Conclusions on AASB 2019-6

This Basis for Conclusions accompanies, but is not part of, AASB 15.  The Basis for Conclusions was originally published with AASB 2019-6 Amendments to Australian Accounting Standards – Research Grants and Not-for-Profit Entities.

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 key decisions made.  In making decisions, individual Board members gave greater weight to some factors than to others.

Research grant examples

     BC2               The Board became aware of different interpretations of how paragraph 35(a) of AASB 15 Revenue from Contracts with Customers applies in the case of research grants and decided that the analysis in the Illustrative Examples accompanying the Standard did not fully explain how to apply the paragraph. Paragraph 35(a) addresses whether the customer simultaneously receives and consumes the benefits provided by an entity's performance as the entity performs, as one basis for the entity transferring control of a good or service over time, and therefore satisfying a performance obligation and recognising revenue over time.

     BC3               The Board determined that paragraph 35(a) leads to three possible outcomes:

         * if it is clear the customer (the donor) simultaneously receives and consumes the research service, paragraph 35(a) is satisfied;

         * if it is clear the customer (donor) does not simultaneously receive and consume the research service, paragraph 35(a) is not satisfied; and

         * if it is uncertain whether the customer (donor) simultaneously receives and consumes the research service, it is necessary to refer to paragraph B4 to determine whether paragraph 35(a) is satisfied. Paragraph B4 states that, in those circumstances, a performance obligation is satisfied over time if an entity determines that another entity would not