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Application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Income of Not-For-Profit Entities

The Commission adopted AASB 15 and AASB 1058 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under the various applicable AASBs and related interpretations.

Under the new income recognition model the Commission first determined whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. Where an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the Commission applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the Commission considered whether AASB 1058 applies.

In relation to AASB 15, the Commission elected to apply the new standard to all new and uncompleted contracts from the date of initial application. The Commission is required to aggregate the effect of all of the contract modifications that occur before the date of initial application.

In terms of AASB 1058, the Commission is required to recognise volunteer services at fair value if those services would have been purchased if not provided voluntarily, and the fair value of those services can be measured reliably.

The Commission determined that there was no impact on the recognition of revenue under AASB 15 compared to previous AAS. The Commission did not have any transactions that have been impacted by the application of AASB 1058.

Impact on transition

The transition to AASB 15 and AASB 1058 has not impacted balances in the Statement of Financial Position.

Set out below are the amounts by which each financial statement line item is affected as at and for the year ended 30 June 2020 as a result of the adoption of AASB 15 and AASB 1058. The first column shows amounts prepared under AASB 15 and AASB 1058 and the second column shows what the amounts would have been had AASB 15 and AASB 1058 not been adopted:

Transitional disclosure

AASB 15 / AASB 1058

Previous AAS

Increase / (decrease)

Own source income

Commonwealth Government contributions




Net (cost of) / contribution by services




Revenue from Commonwealth Government