AASB 15 Revenue from Contracts with Customers, as originally drafted, only provided explicit guidance for revenue recognition for intellectual property (IP) licences from a ‘for-profit perspective’. No explicit guidance was included for non-IP licences.
The Australian Accounting Standards Board has therefore issued AASB 2018-4 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Public Sector Licensors which includes an Appendix G (to be added to AASB 15) to explain and illustrate the licensing principles in AASB 15 from the perspective of a not-for-profit (NFP) public sector licensor.
The amendments to AASB 15, which apply to annual periods beginning on or after 1 January 2019, include:
Amendments have also been made to AASB 16 to clarify that licences that are ‘in substance leases’ or contain leases (other than licences of IP) fall within the scope of AASB 16.