18-20 – Guidance to councils on transitioning to the new Australian Accounting Standards
| Category: Circular to Councils | Status: Active |
| Circular Details: 18-20 / 02 August 2018 / A600437 | Contact: Laura Love / (02) 4428 4178 |
| Previous Circular: Nil | Attachments: Nil |
| Who should read this: General Managers / Financial accounting business areas | Action required: Information / Council to Implement |
| PDF Version: | Council Circular 18-20 – PDF |
What’s new or changing
- The Australian Accounting Standards Board (AASB) is making a number of options available to entities on transition to the new standards:
o AASB 9 Financial Instruments
o AASB 15 Revenue from Contracts with Customers
o AASB 16 Leases
o AASB 1058 Income of Not-for-Profit Entities
What this will mean for your council
- The Office of Local Government has prepared a Guidance Paper, which provides councils with specific direction on adopting the new standards.
- Further guidance material and information on the new standards will be provided in 2018-19.
Key points
- In order to achieve consistency and comparability OLG has elected a position on AASB options, which all councils must adopt on transition to the new standards.
- The new standards must be adopted on their respective mandatory effective dates, i.e. councils are not permitted to early adopt any of the standards.
- Councils should refer to the Guidance Paper when preparing their transition arrangements.
Where to go for further information
- The Guidance Paper and further information regarding the new Standards can be found at:
http://www.olg.nsw.gov.au/strengthening-local-government/supporting-and-advising-councils/accounting-practice
Tim Hurst
Chief Executive