---
title: FAQ on NFPs' concessionary loans
description: A new AASB staff FAQ focuses on accounting for concessionary loans, investigating the interaction between AASB 1058 Income of Not-for-Profit Entities
---

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# [FAQ on NFPs' concessionary loans](https://www.cutcher.com.au/insights-and-news/faq-on-nfps-concessionary-loans)

 Written by [Cutcher & Neale Accounting and Financial Services](https://www.cutcher.com.au/insights-and-news/author/cutcher-neale-accounting-and-financial-services) | 25 March 2021

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](http://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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