Amendments to Australian Accounting Standards – Deferral of AASB 15 for
Not-for-Profit Entities

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© 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.  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

Contents

PREFACE

ACCOUNTING STANDARD

AASB 2016-7 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – DEFERRAL OF AASB 15 FOR NOT-FOR-PROFIT ENTITIES

from paragraph

OBJECTIVE 1

APPLICATION 2

AMENDMENTS TO AASB 15 4

AMENDMENTS TO OTHER STANDARDS AND INTERPRETATIONS 5

COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 6

Australian Accounting Standard AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities is set out in paragraphs 1 – 6. All the paragraphs have equal authority.

Preface

Standards amended by AASB 2016-7

This Standard makes amendments to AASB 15 Revenue from Contracts with Customers (December 2014) and the other Standards and Interpretations listed in paragraph 1 of the Standard.

The amendments arise in conjunction with the issuance of AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities, which sets requirements and provides guidance for the application of AASB 15 by not-for-profit entities, and AASB 1058 Income of Not-for-Profit Entities.

Main features of this Standard

Main requirements

This Standard amends the mandatory effective date (application date) of AASB 15 for not-for-profit entities so that AASB 15 is required to be applied by such entities for annual reporting periods beginning on or after 1 January 2019 instead of 1 January 2018.

Therefore, this Standard also defers, for not-for-profit entities, the consequential amendments that were originally set out in AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15.  This deferral is achieved by restating the effective date of the amendments set out in AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 as they apply to not-for-profit entities.

Earlier application of AASB 15 is permitted for not-for-profit entities for annual reporting periods beginning before 1 January 2019, provided AASB 1058 is also applied to the same period.

Application date

This Standard applies to annual periods beginning on or after 1 January 2017, which was the original mandatory effective date of AASB 15.

Accounting Standard AASB 2016-7

The Australian Accounting Standards Board makes Accounting Standard AASB 2016-7 Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities under section 334 of the Corporations Act 2001.

Accounting Standard AASB 2016-7

Amendments to Australian Accounting Standards – Deferral of AASB 15 for Not-for-Profit Entities

Objective

1                        This Standard amends the following Standards and Interpretations in order to defer the effective date of AASB 15 Revenue from Contracts with Customers and its consequential amendments to other pronouncements for not-for-profit entities, in conjunction with the issue of (1) authoritative implementation guidance for the application of AASB 15 by such entities through AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities and (2) AASB 1058 Income of Not-for-Profit Entities:

(a)                    AASB 15 (December 2014);

(b)                   AASB 1 First-time Adoption of Australian Accounting Standards (July 2015);

(c)                    AASB 3 Business Combinations (August 2015);

(d)                   AASB 4 Insurance Contracts (August 2015);

(e)                    AASB 101 Presentation of Financial Statements (July 2015);

(f)                    AASB 102 Inventories (July 2015);

(g)                   AASB 112 Income Taxes (August 2015);

(h)                   AASB 116 Property, Plant and Equipment (August 2015);

(i)                     AASB 132 Financial Instruments: Presentation (August 2015);

(j)                     AASB 134 Interim Financial Reporting (August 2015);

(k)                   AASB 136 Impairment of Assets (August 2015);

(l)                     AASB 137 Provisions, Contingent Liabilities and Contingent Assets (August 2015);

(m)                 AASB 138 Intangible Assets (August 2015);

(n)                   AASB 139 Financial Instruments: Recognition and Measurement (August 2015);

(o)                   AASB 140 Investment Property (August 2015);

(p)                   AASB 1023 General Insurance Contracts (July 2004);

(q)                   AASB 1038 Life Insurance Contracts (July 2004);

(r)                    AASB 1039 Concise Financial Reports (August 2008);

(s)                    AASB 1049 Whole of Government and General Government Sector Financial Reporting (October 2007);

(t)                     AASB 1053 Application of Tiers of Australian Accounting Standards (June 2010);

(u)                   AASB 1056 Superannuation Entities (June 2014);

(v)                   Interpretation 12 Service Concession Arrangements (August 2015);

(w)                  Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease (August 2015);

(x)                   Interpretation 132 Intangible Assets – Web Site Costs (August 2015);

(y)                   Interpretation 1031 Accounting for the Goods and Services Tax (GST) (July 2004);

(z)                    Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities (December 2007); and

(aa)                 Interpretation 1052 Tax Consolidation Accounting (June 2005).

Application

2                        The amendments set out in this Standard apply to entities and financial statements in accordance with the application of the other Standards and Interpretations as set out in AASB 1057 Application of Australian Accounting Standards (as amended).

3                        This Standard applies to annual periods beginning on or after 1 January 2017.

Amendments to AASB 15

4                        Paragraph AusC1.1 is added.

AusC1.1 Notwithstanding paragraph C1, this Standard applies to not-for-profit entities for annual reporting periods beginning on or after 1 January 2019. Earlier application is permitted, provided that AASB 1058 Income of Not-for-Profit Entities is also applied to the same period. If a not-for-profit entity applies this Standard earlier, it shall disclose that fact.

Amendments to other Standards and Interpretations

5                        The deferrals, reversals and revised wording for pronouncements set out in paragraphs 13–18 of AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 apply to not-for-profit entities so as to determine the content of the pronouncements for such entities effective 1 January 2019 instead of 1 January 2018. The consequential amendments to other Standards originally set out in AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 – except for the amendments to AASB 9 Financial Instruments (December 2009) and AASB 9 (December 2010) – may be applied by not-for-profit entities to annual reporting periods beginning before 1 January 2019.

Commencement of the legislative instrument

6                        For legal purposes, this legislative instrument commences on 31 December 2016.