The already complex accounting landscape for Not-for-Profits, is set to change beginning 1 January 2019, with the Accounting Standards Board releasing their new income recognition requirements.

Application of AASB 1058 Income for Not-for-Profit Entities, coincides with new Revenue Accounting Standards, AASB 15 Revenue from Contracts with Customers (AASB 15) and it’s important to this report in conjunction with the Accounting for income and Accounting for Revenue report.

It is important to note that on 24th December 2018, the AASB issued the amending standard for peppercorn leases and the report reflects the changes of AASB 1058.  The requirement for NFPs to fair value their peppercorn leases can now be deferred. The AASB has issued an amending standard that permits NFPs to elect not to apply the fair value requirement and instead disclose the details of the peppercorn leases in their financial statements. This does not mean the leases will not be recognised, but that the right-of-use asset will be valued based on the value of the lease liability.

Accounting for Income >

Accounting for Revenue >

 

All the Latest From Our Team

5% of ASX-listed companies delisted in 2019-20

Posted By William Buck News on 04/08/2020 06:17:23 am

The clampdown on reverse listings and de-listings of long-suspended companies bites listed ASX shells for the year ended 30 June 2020 During the financial year…

Read More
Don't underestimate the implications of AASB 16 leases

Posted By William Buck News on 11/10/2019 05:29:54 am

Since the new leases standard – AASB 16 – came into effect earlier this year, it’s presented several operational challenges with entities now needing to…

Read More
Important changes to lease agreements

Posted By William Buck News on 14/08/2019 04:38:53 am

Do you work in a finance team, sit on a Board, or are you a business owner? Do you need to report to ASIC or…

Read More
Is your Financial Reporting up to standard?

Posted By William Buck News on 11/07/2019 05:07:40 am

The William Buck Financial Reporting series has wrapped up for the year, providing finance professionals with the latest insights to help their business. Covering various…

Read More