EFRAG´s Discussion Paper to explore accounting for non-exchange transfers

27 November 2018

EFRAG's Discussion Paper Non-exchange Transfers ('NETs'): A role for societal benefit? explores the accounting for transfers in which an entity received (or gives) value without directly giving (or receiving) approximately equal value in exchange.

Non-exchange Transfers ('NETs') include levies and Government grants. In its Discussion Paper (DP), EFRAG explores a comprehensive approach to report these transfers. The DP notes that NETs may be motivated by an objective of 'societal benefit' and considers how this notion could be used in accounting for them.
The DP aims to provide a comprehensive approach and conceptual basis for the recognition of NETs. It explains what factors are usually relevant to the assessment of whether a transfer qualifies as a NET and distinguishes between NETs that impose performance-related conditions, NETs that are linked to an underlying activity, NETs that occur on a recurring basis and other. The DP discusses whether the approach should have symmetrical recognition requirements for cost-generating and income-generating NETs and the role of uncertainty in their recognition.

Comments on the DP are requested by 30 April 2019.

Full press release

Full discussion paper

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