In March 2023, AcSB issued the Exposure Draft, “Contributions – Revenue Recognition and Related Matters,” proposing a single method for recognizing restricted contributions. Under this method, restricted contributions would be recognized as the related restrictions are met. The Exposure Draft also proposed other improvements to contribution accounting, such as clarifying definitions and adding new presentation and disclosure requirements. AcSB received substantial feedback on the Exposure Draft.
While many respondents agreed with the proposed approach for recognizing restricted contribution revenue, others expressed concerns. The AcSB considered this feedback and, through targeted outreach and consultation with its Not-for-Profit Advisory Committee, explored various options to address the feedback heard on the Exposure Draft. After thorough consideration, the Board decided to take the Contributions project in a new direction.
Access the feedback statement on the IFRS Foundation website.