Amendments to Australian Accounting Standards …

1 AASB Standard AASB 2016-8. December 2016. Amendments to Australian Accounting Standards Australian implementation guidance for Not-for-Profit Entities [AASB 9 & AASB 15]. Authorised Version F2017L00044 registered 12/01/2017. Obtaining a copy of this Accounting Standard This Standard is available on the AASB website: Australian Accounting Standards Board PO Box 204. Collins Street West Victoria 8007. AUSTRALIA. Phone: (03) 9617 7600. E-mail: Website: Other enquiries Phone: (03) 9617 7600. E-mail: COPYRIGHT. Commonwealth of Australia 2016. This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission.

2 Requests and enquiries concerning reproduction and rights should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007. ISSN 1036-4803. AASB 2016-8 2 COPYRIGHT. Authorised Version F2017L00044 registered 12/01/2017. Contents PREFACE. Accounting STANDARD. AASB 2016-8 Amendments TO Australian Accounting Standards Australian . implementation guidance FOR NOT-FOR-PROFIT ENTITIES. from paragraph OBJECTIVE 1. APPLICATION 2. Amendments TO AASB 9 4. Amendments TO AASB 15 6. COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 10.

3 BASIS FOR CONCLUSIONS. Australian Accounting Standard AASB 2016-8 Amendments to Australian Accounting Standards Australian implementation guidance for Not-for-Profit Entities is set out in paragraphs 1 10. All the paragraphs have equal authority. AASB 2016-8 3 CONTENTS. Authorised Version F2017L00044 registered 12/01/2017. Preface Standards amended by AASB 2016-8. This Standard makes Amendments to AASB 9 Financial Instruments (December 2014) and AASB 15 Revenue from Contracts with Customers (December 2014). The Amendments arise from the issuance of AASB 1058 Income of Not-for-Profit Entities.

4 Main features of this Standard Main requirements This Standard inserts Australian requirements and authoritative implementation guidance for not-for-profit entities into AASB 9 and AASB 15. This guidance assists not-for-profit entities in applying those Standards to particular transactions and other events. The Amendments to AASB 9 address the initial measurement and recognition of non-contractual receivables arising from statutory requirements. Such receivables include taxes, rates and fines. The Amendments to AASB 15 address the following aspects of Accounting for contracts with customers: (a) identifying a contract with a customer.

5 (b) identifying performance obligations; and (c) allocating the transaction price to performance obligations. Application date This Standard applies to annual periods beginning on or after 1 January 2019. Earlier application is permitted provided AASB 1058 is also applied to the same period. AASB 2016-8 4 PREFACE. Authorised Version F2017L00044 registered 12/01/2017. Accounting Standard AASB 2016-8. The Australian Accounting Standards Board makes Accounting Standard AASB 2016-8 Amendments to Australian Accounting Standards Australian implementation guidance for Not-for-Profit Entities under section 334 of the Corporations Act 2001.

6 Kris Peach Dated 9 December 2016 Chair AASB. Accounting Standard AASB 2016-8. Amendments to Australian Accounting Standards Australian implementation guidance for Not-for-Profit Entities Objective 1 This Standard amends: (a) AASB 9 Financial Instruments (December 2014); and (b) AASB 15 Revenue from Contracts with Customers (December 2014);. to add requirements and authoritative implementation guidance for application by not-for-profit entities. Application 2 The Amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 9 and AASB 15 as set out in AASB 1057 Application of Australian Accounting Standards (as amended).

7 3 This Standard applies to annual periods beginning on or after 1 January 2019. This Standard may be applied to annual periods beginning before 1 January 2019, provided that AASB 1058 Income of Not-for-Profit Entities is also applied to the same period. When an entity applies this Standard to such an annual period, it shall disclose that fact. Amendments to AASB 9. 4 Paragraph is added. Notwithstanding paragraph , in respect of not-for-profit entities, the initial recognition and measurement requirements of this Standard apply to non-contractual receivables arising from statutory requirements as if those receivables are financial instruments.

8 5 Appendix C Australian implementation guidance for not-for-profit entities is added as set out on page 7. Amendments to AASB 15. 6 Paragraphs , and are added. In addition to paragraph 5, in respect of not-for-profit entities, a transfer of a financial asset to enable an entity to acquire or construct a recognisable non-financial asset that is to be controlled by the entity, as described in AASB 1058 Income of Not-for-Profit Entities, is not within the scope of this Standard. For not-for-profit entities, a contract may also be partially within the scope of this Standard and partially within the scope of AASB 1058.

9 Notwithstanding paragraph 9, in respect of not-for-profit entities, if a contract that would otherwise be within the scope of AASB 15 does not meet the criteria in paragraph 9 as it is unenforceable or not sufficiently specific, it is not a contract with a customer within the scope AASB 2016-8 5 STANDARD. Authorised Version F2017L00044 registered 12/01/2017. of AASB 15 (see paragraph F5). An entity shall consider the requirements of AASB 1058 in Accounting for such contracts. 7 In Appendix B, paragraph is added. Notwithstanding paragraphs B34 B38, not-for-profit entities that are government departments shall apply the requirements of AASB 1050 Administered Items to administered items.

10 8 Appendix F Australian implementation guidance for not-for-profit entities is added as set out on pages 8 12. 9 Australian illustrative examples for not-for-profit entities is attached to accompany AASB 15 as set out on pages 13 16. Commencement of the legislative instrument 10 For legal purposes, this legislative instrument commences on 31 December 2018. AASB 2016-8 6 STANDARD. Authorised Version F2017L00044 registered 12/01/2017. Appendix C. Australian implementation guidance for not-for-profit entities This appendix is an integral part of AASB 9 and has the same authority as other parts of the Standard.