Together with the new revenue standard, AASB 15 Revenue from Contracts with Customers, AASB 1058 is meant to simplify and clarify income recognition for NFPs, and supersedes all current income recognition requirements for private sector NFPs, and most of the requirements for public sector NFPs currently contained in AASB 1004 Contributions.
Most not-for-profit entities (NFPs) are aware that there is a new income recognition standard, AASB 1058 Income of Not-for-Profit Entities that applies to annual periods beginning 1 January 2019. However, not all are aware that the new revenue standard, AASB 15 Revenue from Contracts with Customers, also applies from this date, and also applies to NFPs. NFPs therefore need to consider both these standards to ensure that income and revenue are recognised at appropriate amounts, and in the appropriate accounting periods, post 1 January 2019.
This Webinar explains:
• When ‘income’ received by NFPs is accounted for under AASB 1058 and AASB 15 respectively, and
• What features are necessary to meet the ‘enforceable contract’ criterion for revenue recognition under AASB 15 by NFPs.
Many NFPs defer recognition of a variety of income streams because there is a lack of clarity in the current accounting requirements for income of NFPs. However, from 1 January 2019, this situation is about to change. NFPs will need to undergo a formal assessment of all income streams to assess whether recognition under AASB 1058 or AASB 15 is appropriate. Importantly, revenue can only be recognised if there is an enforceable contract with a customer. Management should therefore already be undertaking a detailed review of all contracts and agreements to assess whether these Step 1, AASB 15 criteria have been met.
Webinar Learning Outcomes:
At the end of this webinar, attendees will be able to:
• Explain when and how AASB 1058 should be applied by NFP entities;
• Explain when and how AASB 15 should be applied by NFP entities.
Preparers and auditors of financial reports.
Aletta Boshoff is a Partner and National Leader in IFRS Advisory at BDO Australia. Aletta has over 25 years’ experience in financial reporting and accounting, including IFRS. Aletta prides herself on her technical excellence, approachability, and the ability to solve problems practically. Aletta loves accounting and accounting standards, but she is also of the view that it's only when you try and apply that knowledge that you are really challenged and that it is only then that you fully appreciate the nuances of IFRS.
You will be provided with:
• PowerPoint presentation slide deck
• Supporting documentation
• Webinar Recording to view multiple times for up to 6 months
• An opportunity to ask questions to the presenter
From 1 January 2019 AASB 15 Revenue from Contracts with Customers is also effective, and also applies to NFPs.