Fatal Flaw draft of Revenue for Not-for-Profits has been released for review

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The AASB has released the final chance to comment on the proposed revenue for NFP accounting standard – a fatal flaw draft is open for comment until 21 October with the final standard expected to be released in December 2016.

We encourage all NFP entities and their auditors to review this document and provide comments to the AASB about ‘big ticket’ issues which may be present in the current version.

The standard will see changes to:

  • Income recognition requirements
  • Measurement of assets
  • Accounting peppercorn leases

Implementation guidance for NFPs adopted AASB 15 Revenue from Contracts with Customers is also included in the release which will assist NFPs in identifying enforceable agreements, how to identify whether a performance obligation exists, and how to allocate the transaction price to performance obligations. It will be effective from 1 January 2019, with early application permitted.

The standard is available from the AASB website or by clicking here.

If you have any specific comments, please contact the AASB directly through their comment portal or you can speak to Carmen Ridley, Caseware Financials Content Provider and Member of the AASB on cridley@afrs.com.au.