David H.
David Hardidge

This checklist covers some key questions you should consider.

Regarding your entity and the transition to AASB 15 Revenue and AASB 1058 Income of Not-For-Profit Entities:

  • Do those charged with governance (such as boards and audit committees) and management understand what the new revenue and income of not-for-profit standards require?
  • Do you understand the new concepts of performance obligation, enforceable and sufficiently specific?
  • Has your entity prepared a plan to implement the new standard? Does the plan identify:
    • your revenue, income and grant sources, and include the effect on administered items?
    • the sources most likely to change under the new standards?
    • the consequences of any change?
    • time allowance to discuss and resolve matters requiring significant judgement, such as whether the sufficiently specific criteria has been met?
  • Have you identified the applicable performance obligations?
  • Have you assessed individual arrangements to determine if they meet the requirements for deferral of revenue and recognition over time?
  • Have you captured the critical terms and conditions of the arrangements that will affect revenue recognition?
  • Do you have systems to determine how much to recognise and how much to defer?
  • Have you discussed your plans with us—before you have undertaken significant implementation effort?
  • What system changes and internal control changes will be required? Will you be able to change your systems in time before the standards commence?
  • If you are subject to Treasury’s Financial Reporting Requirements, have you considered the proposed transition choices? If not, what transition choices have you made?
  • Have you prepared tailored draft disclosures under the new standards, using focused financial reporting principles?
  • Will your financial report disclosures relating to the effect on you of the new accounting standards indicate that you are ready?