Recognising volunteer services
RECOGNISING VOLUNTEER SERVICES
Under AASB 1058 Income of Not-for-Profit Entities , local governments, government departments, general government sectors and whole of governments must recognise an inflow of resources in the form of volunteer services as an asset (or an expense, when the definition of an asset is not met).
There are two conditions for recognition:
- The fair value of those services can be measured reliably, and
- The services would have been purchased if they had not been donated.
Any other not-for-profit entity may, as an accounting policy choice , elect to recognise volunteer services, or a class of volunteer services, if the fair value of those services can be measured reliably, whether or not the services would have been purchased if they had not been donated.
Volunteer services must be measured at fair value.
Disclosure is required of income recognised from volunteer services. Disclosure is encouraged of qualitative information, about the nature of the entity's dependence arising from volunteer services it receives, including those not recognised.
AASB 1058 applies to 30 June year-ends for the first time.
