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A new AASB staff FAQ focuses on accounting for concessionary loans, investigating the interaction between AASB 1058 Income of Not-for-Profit Entities and AASB 9 Financial Instruments.
The FAQ provides non-authoritative guidance on how a not-for-profit applies AASB's 1058 and 9 in accounting for concessionary loans, highlighting that the standards are applied together. The same accounting outcome should result, regardless of whether an entity appears to apply either AASB 9 or AASB 1058 first.
The FAQ includes a flowchart to set out accounting process to follow and a simple practical example to illustrate it.
It responds to feedback that AASB 1058 paragraph BC88 could cause confusion in applying relevant AASB 1058 and AASB 9 requirements.
For more information go to www.aasb.gov.au/admin/file/content102/c3/Updated_NFP_Staff_FAQs_07-20.pdf
If you would like to discuss this further with one of our assurance team members, please contact us.
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