At their recent meeting in June, the AASB continued discussions and made progress in relation to some not-for-profit related topics, including accounting standard treatment of the income of not-for-profit entities.
In particular they decided to re-express the project objective as “to develop a not-for-profit sector Accounting Standard that provides a basis for accounting for resource inflows and, where needed, develop not-for-profit sector specific guidance”. The not-for-profit sector Standard [draft] AASB 10XX Not-for-Profit Entity Transactions will, as the ‘starting point’ for entities in this sector: (i) provide guidance as to when control of a resource is obtained; (ii) include ‘signposts’ to relevant existing Accounting Standards that entities should apply; and (iii) replace the income recognition requirements of AASB 1004 Contributions with new income recognition principles for transactions that are not within the scope of existing Standards (e.g. AASB 15 Revenue from Contracts with Customers). They will also develop guidance for not-for-profits to assist in the implementation of AASB 15.
For more details click here to download the AASB Action Alert.