BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
( t ) New Accounting Standards for Application in Future Periods ( continued )
– AASB 15 : Revenue from Contracts with Customers ( applicable to annual reporting periods beginning on or
after 1 January 2019 , as deferred by AASB 2015-8 : Amendments to Australian Accounting Standards – Effective Date of AASB 15 ).
When effective , this Standard will replace the current accounting requirements applicable to revenue with a single , principles-based model . Except for a limited number of exceptions , including leases , the new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers .
The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services . To achieve this objective , AASB 15 provides the following five-step process :
- identify the contract ( s ) with a customer ; - identify the performance obligations in the contract ( s ); - determine the transaction price ; - allocate the transaction price to the performance obligations in the contract ( s ); and - recognise revenue when ( or as ) the performance obligations are satisfied .
The transitional provisions of this Standard permit an entity to either : restate the contracts that existed in each prior period presented per AASB 108 : Accounting Policies , Changes in Accounting Estimates and Errors ( subject to certain practical expedients in AASB 15 ); or recognise the cumulative effect of retrospective application to incomplete contracts on the date of initial application . There are also enhanced disclosure requirements regarding revenue .
Although the directors anticipate that the adoption of AASB 15 may have an impact on the association ’ s financial statements , it is impracticable at this stage to provide a reasonable estimate of such impact .
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