Revenue and income recognition is set to change for not-for-profit entities for financial years beginning on or after 1 January 2019. While the for-profit sector is already busy applying AASB 15 Revenue from contracts with customers, the new not-for-profit income standard, AASB 1058 Income of not-for-profit entities and AASB 15 become effective for the not-for-profit sector from 1 January 2019. Our experience has been that close consideration of contracts and other documentation to obtain a sound understanding of the specific facts and circumstances is raising a number of implementation issues in applying the new requirements.

Application of the new revenue and income guidance to not-for-profit transactions will not be straight forward. Judgement will be required and interpretation of the standard is still evolving.

This webinar outlines practical considerations in implementing the income for not-for-profit entities standard and guidance contained in AASB 1058 and AASB 15, including:

• providing a decision tree to guide when to apply which standard
• considering criteria that need to be assessed in determining which standard to apply, and whether income is recognised immediately, over time or at a point in time
• interaction of the revenue and income guidance with the new leases standard, AASB 16 and the new financial instruments standard AASB 9
• transition considerations and ongoing disclosures.
  

View a copy of the slide presentation from the webinar.