Local Government Code of Accounting Practice and Financial Reporting – 2023-24

The Office of Local Government (OLG) provides support and advice to councils through the Local Government Code of Accounting Practice and Financial Reporting (Code). The latest update of the Code and a summary of key changes are available below.

• Local Government Code of Accounting Practice and Financial Reporting – Section 1 – General Purpose Financial Statements
• Local Government Code of Accounting Practice and Financial Reporting – Section 2 – JO Supplement
• Local Government Code of Accounting Practice and Financial Reporting – Section 3 – Special Purpose Financial Statements
• Local Government Code of Accounting Practice and Financial Reporting – Section 4 – Special Schedules
• Local Government Code of Accounting Practice and Financial Reporting – Section 5 – Appendices
• Summary of key changes for 2023-24

Mandates of options and major policy decisions under Australian Accounting Standards

OLG has consolidated guidance in relation to mandates of options and major policy decisions for NSW Local Government entities under Australian Accounting Standards.

NSW Treasury Guidance

The following 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.

• Guidance for AASB 16 Leases
• Guidance for AASB 1058 Income of Not-for-profit entities
• Guidance for AASB 15 Revenue from contracts with customers
• Guidance for AASB 1059 Service concession arrangements

Guidance material available for councils via the OLG Council Portal

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

• Analysis of Revenue Contracts – Councils and OLG;
• Analysis of Revenue Contracts – Councils and NSW Government
• Analysis of Revenue and Lease Contracts – Other
• Analysis of example Waste Management agreements; and
• Supporting examples of revenue contracts, grants, leases, and agreements.

For access to the guidance material, please complete a registration request to the OLG Council Portal via link here https://www.olg.nsw.gov.au/create-account/

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, OLG has released the following additional resources:

• 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.