Subscribe to News
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

Proposed amendment to ‘not-for-profit entity’ definition

Contributor

Thursday, 22nd August 2019 at 7:30 am

Can we stop paying for professional development?

Contributor

Tuesday, 20th August 2019 at 7:15 am

Taking the future into our hands

Contributor

Tuesday, 20th August 2019 at 7:00 am

New FIA short courses address skills gap in fundraising sector

Contributor

Thursday, 15th August 2019 at 9:01 am

POPULAR

NDIS help arrives for Australians experiencing homelessness

Luke Michael

Friday, 9th August 2019 at 4:42 pm

Disability groups call for better quality plans in NDIS review

Luke Michael

Monday, 12th August 2019 at 4:51 pm

Don’t Buy. Don’t Supply. Say Why.

David Ritter

Thursday, 8th August 2019 at 8:13 am

Gillian Triggs to shine a light on Australia’s refugee treatment

Maggie Coggan

Monday, 12th August 2019 at 5:04 pm

subscribe to careers
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!