Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p32
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 32/56)
Character Range: 347605–350499

concluded that the issue of a non-IP licence (which is not a lease or which does not contain a lease) representing a right to access or use a licensor's asset, or perform an activity, would constitute goods or services for the purposes of AASB 15.

The scope of 'ordinary activities'
     BC51            The Board considered whether the issue of a licence would be an output of the public sector entity's ordinary activities. As AASB 15 does not define the meaning of the term 'ordinary activities', the Board noted the term is derived from the definition of revenue in the Conceptual Framework, particularly as distinct from other activities an entity may engage in. The Board regarded the activity of issuing licences as being within the ambit of ordinary activities carried out by a NFP public sector entity that is an issuing authority because issuing licences is a key responsibility of issuing authorities. Accordingly, the Board concluded that the issue of licences would be within the ordinary activities of a NFP public sector entity that issues such licences.

The Board's conclusion on AASB 15
     BC52            For the reasons outlined above, the Board considered that all licences outside the scope of AASB 16 and AASB 1059 should fall within the scope of AASB 15, whether contractual or statutory in nature. Despite this decision, for the removal of doubt, the Board decided that AASB 15 should be amended to specifically include revenue from licences issued by NFP public sector licensors within its scope (ie other than those within the scope of AASB 16 and AASB 1059) without stating whether such licences would otherwise meet the scope requirements of AASB 15. In making this decision, the Board acknowledged the following possible alternate views that would mean AASB 15 would not apply:

          (a)                    it is conceivable that some licences are not outputs of ordinary activities; and

          (b)                   future licencing arrangements might be developed that do not have the character of a 'contract', 'goods or services' or 'ordinary activities' in accordance with the Board's current views.

Allocating a transaction between licences and taxes
     BC53            In ED 283 the Board noted that a licensor could enter into a single transaction comprising of a licence and other economically different elements that are not contractually promised goods or services (such as a tax). In allocating the transaction price between a licence and other components of the transaction, the Board considered whether the implementation guidance relating to the allocation of the transaction price to performance obligations set out in Appendix F of AASB 15 [which arose from AASB 2016-8] should be applied.

     BC54            Paragraphs F28–F32 of Appendix F of AASB 15 set out implementation guidance for NFP entities in allocating a transaction