Accounting for Revenue and Non-Exchange Expenses

Consultation Paper
IPSASB
| Exposure Drafts and Consultation Papers
English
Comments due by:

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.
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