Home / Answers / When does AASB 2026-4 start for a not-for-profit?
When does AASB 2026-4 start for a not-for-profit?
The instrument commences on 31 December 2027. A not-for-profit entity applies it to annual periods beginning on or after 1 January 2028, which is a different test.
What date does the instrument use?
Paragraph 26 commences the instrument on 31 December 2027 for not-for-profit entities. Paragraph 3 and AASB 18 paragraph AusC1.1 apply it to annual periods beginning on or after 1 January 2028. Both dates belong in the plan.
What is my first affected period?
Take the first day of your annual period and move forward in whole years until it is on or after 1 January 2028. A 30 June entity is first affected in the period beginning 1 July 2028. A 31 December entity is first affected in the period beginning 1 January 2028.
Does the comparative period change?
The first affected report carries a comparative. The AASB 18 comparative requirements apply to the primary statements, including the statement of changes in member benefits for a superannuation entity. The check names the comparative in the result.
Can we apply early?
Yes, provided AASB 18 is also applied to the period, and the early application is disclosed in the notes. Early application is a package, not a paragraph-by-paragraph choice.
Which reliefs are available to a public sector NFP?
A public sector not-for-profit that is not a higher education provider may elect relief from the category model, the expense basis and the performance measures note. Each is a separate election and each has to be documented.
What about a private sector NFP?
A private sector not-for-profit does not get the public sector elections. It applies the AASB 18 presentation requirements with the not-for-profit reading of the user tests, and it keeps the paragraph 78 expense analysis with the operations or principal activities focus.
The paragraphs behind this answer
- AASB 18 paragraph Aus47.2: Decide whether to use the public sector category relief
- AASB 18 paragraph Aus78.2: Choose nature or function for public sector expenses, and say so
- AASB 18 paragraph Aus123.1: Decide whether management-defined performance measures are in scope
- AASB 18 paragraph AusC1.1: Fix the first period: annual periods beginning on or after 1 January 2028
- AASB 107 paragraph Aus20.2: Reconcile operating cash flows to net cost of services where that measure is highlighted
- AASB 1054 paragraph 16: Reconcile net operating cash flow to the right profit figure
- AASB 2026-4 paragraph 26: The commencement ladder has three dates
Questions
Is 31 December 2027 the first reporting date?
No. It is the commencement date. The first annual periods covered begin on or after 1 January 2028.
Does a June year end apply a year later?
Yes. A 30 June reporter is first affected in the year beginning 1 July 2028, ending 30 June 2029.
Is earlier application allowed?
Yes, if AASB 18 is also applied to the period and the early application is disclosed.