In this edition, our ‘not-for-profit’ section provides a roadmap for directors and boards of not-for-profit entities (NFPs) to navigate the recently released second edition of the AICD’s Not-for-Profit Governance Principles. It also includes guidance on how NFPs would identify ‘sufficiently specific’ performance obligations when assessing whether AASB 15 or AASB 1058 applies.
We explore further aspects of the ‘triple threat’ new accounting standards, this month looking at some examples to demonstrate how determining the transaction price (Step 3) for revenue recognition under IFRS 15 can be a complex process for for-profit entities, and highlight the results of ASIC’s financial reporting surveillance of 30 June 2018 financial reports.
We also look at recent international developments, including recent agenda decisions by the IFRS Interpretations Committee, and proposals by the IASB to clarify what constitutes costs of fulling an onerous contract.
Lastly, we confirm recent approvals by the AASB of Australian amending standards, including the deferral of the requirements for NFP lessees to measure right-of-use assets subject to peppercorn leases at fair value, as well as amendments to the definitions of a ‘business’ and what is ‘material’.