| PBE34.67 | An entity shall recognise receipts of resources from non-exchange transactions as follows: |
| (a) | Transactions that do not impose specified future performance-related conditions on the recipient are recognised in income when the resources are received or receivable. |
| (b) | Transactions that do impose specified future performance-related conditions on the recipient are recognised in income only when the performance-related conditions are met. |
| (c) | Where resources are received before the revenue recognition criteria are satisfied, a liability is recognised. |
| PBE34.68 | The existence of a restriction does not prohibit a resource from being recognised in income when receivable. |
| PBE34.69 | When applying the requirements of paragraph PBE34.67, an entity must take into consideration whether the resource can be measured reliably and whether the benefits of recognising the resource outweigh the costs. |
| PBE34.70 | Therefore, where it is impracticable to estimate the value of the resource with sufficient reliability, the income shall be included in the financial period when the resource is sold. [AMD 577] |
| PBE34.71 | An entity shall recognise a liability for any resource that has previously been received and recognised in income when, as a result of a subsequent failure to meet restrictions or performance-related conditions attached to it, repayment becomes probable. |
| PBE34.72 | Donations of services that can be reasonably quantified will usually result in the recognition of income and an expense. An asset will be recognised only when those services are used for the production of an asset and the services received will be capitalised as part of the cost of that asset. |
| PBE34.73 | An entity shall measure incoming resources from non-exchange transactions as follows: |
| (a) | Donated services and facilities, that would otherwise have been purchased, shall be measured at the value to the entity. |
| (b) | All other incoming resources from non-exchange transactions shall be measured at the fair value of the resources received or receivable. |
| AMD 577 Amendment Paragraph PBE34.70 amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017) Effective date 01/01/2019 Previous text PBE34.70 Therefore, where it is not practicable to estimate the value of the resource with sufficient reliability, the income shall be included in the financial period when the resource is sold. |
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