Our Content Expert and AASB member, Carmen Ridley suggests how to account for interest and dividends under the new revenue regime.
AASB 118 was the previous accounting standard for revenue and the scope of this standard included interest and dividends revenue whereas AASB 15 includes the following scope exemption:
“5 An entity shall apply this Standard to all contracts with customers, except the following:
…(c) financial instruments and other contractual rights or obligations within the scope of AASB 9 Financial Instruments…”
Where do we now go for guidance in relation to accounting for interest (and dividend) revenue?
Interest / dividend revenue is now captured by AASB 9 Financial Instruments since it is not revenue earned from a customer.
From a practical perspective, we wouldn’t generally expect any accounting changes for entities in relation to accounting for interest / dividend revenue.