Local Government Code of Accounting Practice and Financial Reporting – Update 28 for 2019-20

The Office of Local Government provides support and advice to councils through the Local Government Code of Accounting Practice and Financial Reporting (Code). A copy of OLG’s Council Circular and the latest update of the Code is available below.

 

Guidance to councils on transitioning to the new Australian Accounting Standards

Initially prepared and released in August 2018 and updated in February 2019, OLG released a Guidance Paper, to provide councils with specific direction on adopting the new standards. A copy of OLG’s Council Circular can be accessed here Guidance Paper Circular.

 

NSW Treasury Guidance

In March 2019, OLG released guidance developed by NSW Treasury. The documents were issued by NSW Treasury for State Agencies and Departments. The primary audience was not NSW councils, nor council related entities, however the content could be a useful resource for NSW councils. Comments have been provided by OLG throughout the guidance in Bold Red

 

Guidance material available for councils via Objective Connect

In November 2019 and May 2020, the Office of Local Government prepared and released guidance material to support the implementation of the new Accounting Standards AASB 16, 15 and 1058. The material includes:

  • Analysis of Contracts – Financial Reporting;
  • Analysis of OLG Revenue agreements;
  • Analysis of Revenue Contracts between Councils and NSW Government;
  • Analysis of example waste management agreements; and
  • Supporting examples of revenue contracts, grants, leases, and agreements.

 

Council finance staff with access to the Objective Connect portal can continue to access the guidance documents via Objective Connect at the following link: https://secure.objectiveconnect.com/login

Council finance staff who would like access to the guidance material on the portal should email code@olg.nsw.gov.au, requesting access to the Accounting Code Guidance Documentation and provide their name, role, council/agency, and contact details.

 

Facilitated implementation discussion sessions – April 2020

To further support councils implement the new Accounting Standards, OLG recently held six half day facilitated implementation discussion sessions. These sessions aimed at providing councils with additional assistance in implementing three new Accounting Standards, AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not for Profit Entities or AASB 16 Leases, this coming financial year end.

From the sessions, a Frequently Asked Questions document has been developed.

 

Other resources

To further support councils implement the new Accounting Standards, OLG has released the following additional resources:

  • Guidance on preparing for the introduction of new Accounting Standards Financial Reporting year ending 30 June 2020.
  • Guidance and a template on preparing an accounting policy position paper.
  • Questionnaire to assist councils in documenting their analysis of revenue contracts in the initial and ongoing implementation of AASB 15 and AASB 1058.