Accounting for Revenue and Non-Exchange Expenses

Consultation Paper

Aug 22, 2017 | Exposure Drafts and Consultation Papers

Comments due by: Jan 15, 2018

This Consultation Paper discusses two potential approaches for recognition of revenue for transactions that have performance obligations or stipulations:

  • The Exchange/Non-Exchange Approach – which maintains the principles within IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers)but identifies five options for updating that Standard; and
  • The Public Sector Performance Obligation Approach for Revenue - where revenue is recognized when identified performance obligations have been met

It also discusses two potential approaches for recognition of non-exchange expenses:

  • The Extended Obligating Event Approach - relies on the IPSASB’s Conceptual Framework to determine when a resource provider has a liability and an expense; and
  • The Public Sector Performance Obligation Approach for Expenses – mirrors the equivalent revenue approach but adapted for non-exchange expenses.

The Consultation Paper also discusses:

  • Implementation issues regarding recognition of revenue from capital grants and services in-kind;
  • Initial and subsequent measurement of non-contractual receivables; and
  • Subsequent measurement of non-contractual payables.

Copyright © 2022 The International Federation of Accountants (IFAC). All rights reserved.

Submitted Comment Letters

1. Broadcasting Commission - NZ On Air  (New Zealand)
November 16, 2017

2. Susan Chisnall  (New Zealand)
November 19, 2017

3. New Zealand Film Commission  (New Zealand)
November 19, 2017

4. Te Mangai Paho (Maori Broadcasting Funding Agency)  (New Zealand)
November 23, 2017

5. International Consortium of Government Financial Management (ICGFM)
November 28, 2017

6. Whanganui District Health Board
December 11, 2017

7. Accountancy Europe
December 15, 2017

8. Accounting Standards Board  (South Africa)
December 19, 2017

9. ITER Organization
December 20, 2017

10. New Zealand Accounting Standards Board
January 11, 2018

11. Chartered Accountants Australia and New Zealand
January 11, 2018

January 11, 2018

13. Swiss Public Sector Financial Reporting Advisory Committee  (Switzerland)
January 12, 2018

14. Task Force IRSPM A&A SIG, CIGAR Network and EGPA PSG XII
January 15, 2018

15. The Japanese Institute of Certified Public Accountants  (Japan)
January 15, 2018

16. Institute of Chartered Accountants of Nigeria  (Nigeria)
January 15, 2018

17. Korea Institue of Public Finance
January 15, 2018

18. Kalar Consulting Ltd  (United Kingdom)
January 15, 2018

19. KPMG Services Proprietary Limited  (South Africa)
January 15, 2018

20. Institut der Wirtschaftspruefer in Deutschland e.V. (IDW)  (Germany)
January 15, 2018

21. CIPFA  (United Kingdom)
January 15, 2018

22. Conselho Federal de Contabilidade (CFC)  (Brazil)
January 15, 2018

23. Ichabod's Industries Limited
January 15, 2018

January 15, 2018

25. Audit New Zealand  (New Zealand)
January 15, 2018

26. PwC
January 15, 2018

27. ICAEW  (United Kingdom)
January 15, 2018

28. Austrian Ministry of Finance
January 16, 2018

29. The Institute of Chartered Accountants of India  (India)
January 16, 2018

30. Cour des comptes (France)
January 17, 2018

31. Conseil de normalisation des comptes publics  (France)
January 22, 2018

32. Australasian Council of Auditors-General  (Australia)
January 23, 2018

33. EY
January 23, 2018

34. European Commission
January 24, 2018

35. Malaysian Institute of Accountants
January 30, 2018

36. Public Sector Accounting Board  (Canada)
January 31, 2018

37. DGFiP  (France)
February 5, 2018

38. US Government Accountability Office
February 9, 2018


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