With the issue of Exposure Draft 260, Income of Not for Profit Entities (ED 260), the Australian Accounting Standards Board (AASB) aims to improve the match between revenues and expenditures.

Replacing the income recognition requirements of AASB 1004, ED 260 applies to grants, donations, taxes and other receipts that are outside the scope of other Accounting Standards and includes guidance assisting NFP entities to apply AASB 15. Exposure Draft 260 is proposed to be effective at January 1 2017, with early adoption permitted.