How should an entity initially account for multiple traffic fines issued simultaneously to one motorist?

The Public Sector Accounting Forum noted it might be unclear what information an entity should initially assess and what should be recognised where there are multiple fines issued simultaneously to one motorist because:

• some of the fines may be conditional on a motorist subsequently producing specific evidence; and
• the fines may be reduced in future after specific processes have been followed.

Per IGRAP 1 on Applying the Probability Test on Initial Recognition of Revenue, an entity initially estimates and recognises the amount of revenue it is entitled to. The estimate includes factors such as rebates, discounts, or adjustments resulting from the processes as described in IGRAP 20 on Accounting for Adjustments to Revenue. However, credit risk is not included in the assessment. An entity would use all information available to it and information that it could reasonably have been expected to consider when making the estimate.