NZASB Meeting 6 October 2017
Date And Time
- Level 7
50 Manners Street
55 Shortland Street
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Here is a summary of the main matters considered.
Accounting for Revenue and Non-Exchange Expenses
The NZASB considered chapters 1–5 of the International Public Sector Accounting Standards Board (IPSASB) Consultation Paper Accounting for Revenue and Non-Exchange Expenses (the CP). The Board provided feedback on preliminary views 1–4 and specific matters for comment 1–6 on its draft comment letter of the CP.
The Board agreed the key determinant of revenue recognition in the public sector and not-for-profit sector under the proposed framework should be the classification of revenue transactions with performance obligations or those without performance obligations rather than the current exchange or non-exchange classification.
The Board discussed the wide spectrum of revenue transactions in the public sector and not-for-profit sector and agreed revenue transactions with performance obligations should be accounted for using the approach described in the CP as the Public Sector Performance Obligation Approach, which is based on IFRS 15 Revenue from Contracts with Customers but adapted for the public sector.
The Board noted revenue transactions with time requirements or stipulations over use (but no performance obligations) could be accounted for using the presentation option or other comprehensive revenue and expense with recycling option proposed in the CP.
At the next meeting, the Board will discuss the non-exchange expenses recognition approaches proposed in the CP.
Comments for the CP are due to the NZASB by 22 November 2017 and to the IPSASB by 15 January 2018.
1 November 2017 in Wellington