STATEMENT OF FINANCIAL POSITION TREATMENT: Deemed and designated contributions by/distributions to owners (equity) require the same treatment in accordance with AASB 1004 paragraphs 54-56. An example of AASB 1004.54 is as follows: Transferring entity: Dr. Distribution to owners (equity) Cr. Derecognition of the transferred Gaining entity: Dr. Asset Cr. Contribution by owners (equity) Recognition of the asset STATEMENT OF COMPREHENSIVE INCOME TREATMENT: Transfers not deemed or designated as equity are accounted for through the statement of comprehensive income, as follows: Transferring entity: Dr. Expense Cr. Asset Derecognition of the asset transferred Gaining entity: Dr. Asset Cr. Gains* Recognition of the asset As the transfer is to be part of the gaining entity’s ordinary activities, otherwise unlikely may be appropriate. ‘Revenue’
STATEMENT OF FINANCIAL POSITION TREATMENT: Deemed and designated contributions by/distributions to owners (equity) require the same treatment in accordance with AASB 1004 paragraphs 54-56. An example of AASB 1004.54 is as follows: Transferring entity: Dr. Distribution to owners (equity) Cr. Derecognition of the transferred Gaining entity: Dr. Asset Cr. Contribution by owners (equity) Recognition of the asset STATEMENT OF COMPREHENSIVE INCOME TREATMENT: Transfers not deemed or designated as equity are accounted for through the statement of comprehensive income, as follows: Transferring entity: Dr. Expense Cr. Asset Derecognition of the asset transferred Gaining entity: Dr. Asset Cr. Gains* Recognition of the asset As the transfer is unlikely to be part of the gaining entity’s ordinary activities, otherwise ‘Revenue’ may be appropriate.
rmg-123-deeming-or-designating-transfers-of-assets-and-liabilities-as-contributions-by-owners-equity.docx