Bushfire Appeals
MEDIA, JOBS & RESOURCES for the COMMON GOOD
Sponsored  |  GovernanceAccounting

Income recognition template designed for not for profits


Thursday, 25th July 2019 at 7:30 am
Contributor
HLB shares a new template to help not for profits comply with complex new accounting standards and find a process to determine how and when to recognise income.


Thursday, 25th July 2019
at 7:30 am
Contributor


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Income recognition template designed for not for profits
Thursday, 25th July 2019 at 7:30 am

HLB shares a new template to help not for profits comply with complex new accounting standards and find a process to determine how and when to recognise income.

To assist not-for-profit organisations comply with the new Australian Accounting Standards we have held a number of workshops and seminars as the new standards have significantly changed how and when NFPs record income.

The new standards, AASB 15: Revenue from Contracts with Customers and AASB 1058: Income of Not-for-Profit Entities, 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. a few weeks ago).

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.

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, as well as 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.

If you wish to use the HLB Not-for-Profit Income Recognition Template for your organisation please contact your local HLB firm here.




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Bridging the education gap: Why Australia is failing Indigenous Australians

Andrew Cairns

Thursday, 23rd January 2020 at 7:30 am

Setting your 2020 vision for government engagement – a checklist

Andrew Blyberg

Thursday, 16th January 2020 at 7:30 am

Does volunteering overseas enhance your career?

Contributor

Monday, 13th January 2020 at 8:00 am

The must do’s for 2020 grants success

Contributor

Thursday, 12th December 2019 at 7:30 am

POPULAR

NDIS not yet in tune with the needs of participants

Luke Michael

Monday, 20th January 2020 at 4:46 pm

What impact will the bushfire crisis have on homelessness?

Luke Michael

Wednesday, 15th January 2020 at 4:28 pm

The rise (and scepticism) of Facebook fundraisers

Maggie Coggan

Thursday, 16th January 2020 at 8:49 am

New fund paves the way for impact investment in the charity sector

Luke Michael

Friday, 17th January 2020 at 4:34 pm

Bushfire Appeals
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!