AASB 15 Revenue from Contracts with Customers Aus8.1-Aus8.5: Not-for-profit public sector licensors: the election to leave short-term and low-value licences outside the five-step model

What does Aus8.1-Aus8.5 require?

A not-for-profit public sector licensor may choose not to run paragraphs 9 to 90 and their application guidance over short-term licences or licences whose transaction price is of low value, unless the licence terms contain variable consideration. Where the election is made, revenue for those licences is recognised either when the licence is issued or straight-line (or on another systematic basis) over the licence term. Under the short-term election, any change to the scope, consideration or term of a licence makes it a new licence. The short-term election is made by class of licence, a grouping of licences with similar nature, rights and obligations; the low-value election may be made licence by licence.