In December 2016, the AASB issued AASB 1058: Income for not for profit entities. The new standard is applicable for periods beginning on or after 1 January 2019, and the AASB has made complementary changes to the existing AASB 1004 Contributions, and has also added new guidance AASB 15 Revenue from Contracts with Customers to clarify its application in the not for profit sector. Early adoption is permitted, provided that AASB 15 is adopted simultaneously.
The new standard was the result of a long-running project to address the ambiguity and inconsistent application of AASB 1004. It applies not only to donations, but to any transaction where no consideration was paid, or where the consideration given to acquire an asset is significantly less than the fair value of that asset. It also introduces new rules in respect of the recognition of volunteer services.