The AASB is undertaking a post-implementation review of the accounting requirements for income of not-for-profit (NFP) entities. ITC 50 discusses challenges experienced in applying AASB 1058 Income of Not-for-profit Entities and the NFP specific implementation guidance to AASB 15 Revenue from Contracts with Customers - Appendix F including:

1. How the “sufficiently specific” criterion could be interpreted and applied to the many types of grants in the sector.
2. Accounting for the liability arising from the standard “termination for convenience” clause in agreements.
3. Accounting for principals or agents which, in some circumstances, may be inconsistent with the requirements in AASB 9 Financial Instruments.

While implementation concerns were considered, feedback we received indicates that there is insufficient justification for further amendments to AASB 1058 and AASB 15 Appendix F at this time.

In a joint submission, CA ANZ and CPA Australia recommend the AASB focuses its efforts on developing the Simplified Accounting Requirements (Tier 3 Standard for NFP Private Sector Entities).
This standard will reduce the number of NFP entities using AASB 1058 and AASB 15 Appendix F. Until there is a clearer picture of the entities that will continue to adopt these requirements, it could be too early for the AASB to focus on the proposed amendments.