To assist not-for-profit organisations comply with the new Australian Accounting Standards AASB 15: Revenue from Contracts with Customers and AASB 1058: Income of Not-for-Profit Entities, we have held a number of workshops and seminars. The new Standards have significantly changed how and when NFPs record income.
The new Standards are applicable:
- from 1 January 2019 for 31 December year ends (i.e. five months ago!,) and
- from 1 July 2019 for 30 June year ends (i.e. within a few weeks!).
Our discussions with members of the NFP community tell us that most organisations are well behind in determining how to comply with the new Standards, and that many Boards or other governing bodies have not yet set plans for the significant work involved.
The new Standards are complex and, in many cases, not easy to follow. To make the process easier, we have developed the HLB Not-for-Profit Income Recognition Template.
Watch the video
We have produced a short tutorial that outlines how the template works. It will navigate you through the requirements of the new Standards, and give you a process to determine how and when to recognise income.
Not-for-profit entities should document how they comply with the new Standards. A number of decisions will need to be made – some of which require an educated judgement. These judgements should also be documented, and the Template gives you space for this.
This template provides a way to document your compliance and your revenue recognition policies. The completed Template should then be approved by your Board or other governing body.
AASB 1058 and AASB 2016-8: Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities both include a number of examples of different types of income to demonstrate how to apply the new Standards.
We have also prepared an “example” version of the Template which includes each of the examples in AASB 1058 and in AASB 2016-8, and also some other examples of membership organisation fees, to demonstrate how to use the Template, and to provide guidance in working out how to recognise your income.
The template is available to HLB Mann Judd’s clients.
If you are not a client and wish to use the HLB Not-for-Profit Income Recognition Template for your organisation please contact your local HLB firm. As a valued member of the community we will assist you by providing a 90 minute consultation on how to use the HLB Not-for-Profit Income Recognition Template, and provide a copy of the template for your further use. The fee is $2,000 (before GST).
Our template is the latest tool that we have produced to assist the NFP community. Should you wish to discuss the template or any of the other tools that we have available, please contact an HLB partner.