b'EQUESTRIAN AUSTRALIA LIMITED ABN 19 077 455 755NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20193. ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT OPERATIVE AT JUNE 2019 (continued)AASB 16 substantially carries forward the lessoraccounting requirements in AASB 117. Accordingly, under AASB 16 a lessor would continue to classify its leases as operating leases or finance leases subject to whether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership of the underlying asset, and would account for each type of lease in a manner consistent with the current approach under AASB 117.AASB 1058: Income of Not-for-Profit EntitiesAASB1058:IncomeofNot-for-ProfitEntities,AASB2016-7:AmendmentstoAustralian Accounting StandardsDeferral of AASB 15 for Not-for-Profit Entities and AASB 2016-8: Amendments to Australian Accounting StandardsAustralian Implementation Guidance for Not-for-ProfitEntities(applicableforannualreportingperiodscommencingonorafter1 January 2019).AASB1058replacestheincomerecognitionrequirementsinAASB1004:Contributions applicable to private sector not-for-profit entities with a model based on the principles of AASB 15: Revenue from Contracts with Customers.Consequently,AASB1058requiresprivatesectornot-for-profitentitiestorecogniseall revenue from contracts with customers when the related performance obligations are satisfied, irrespective of whether the ultimate beneficiary of the goods or services provided by the not-for-profit company is the grantor of the funds or another company. An agreement involving a not-for-profit company would be classified as a contract with a customer if the agreement:ocreates enforceable rights and obligations between the parties; and oincludes a promise by the not-for-profit company to transfer a good or service that is sufficiently specific for the company to determine when the obligation is satisfied.For contracts with customers that comprise a donation component, AASB 1058 requires such components to be treated as part of the performance obligation(s) unless the company can demonstrate that component is not related to the promised goods or services.When an arrangement does not meet the criteria for a contract with a customer, the inflows are accounted for in accordance with AASB 1058, which requires:othe asset received by the not-for-profit company to be accounted for in accordance with the applicable Australian Accounting Standard; and oany difference between the consideration given for the asset and its fair value to be recognised in accordance with its substance (such as a contract liability, a financial instrument and/or a contribution by owners), and any residual amount recognised as income.\x03\x0363'