16-04 – Draft Code of Accounting Practice and Financial Reporting for 2015-16 (update 24)

What’s new or changing

  • The draft 2015-16 Code of Accounting Practice and Financial Reporting has been released for comment.

What this will mean for your council

  • Councils are invited to provide feedback on the draft Code (update 24) by Monday 28 March 2016 to:
  • There is an opportunity to learn more about the changes and provide feedback via a webinar on Monday 21 March 2016 (9:30am to 11:00am).
  • Details on how to participate in the webinar are shown in Attachment A.

Key points

  • OLG has prepared draft Accounting Code (update 24) in response to sector feedback, policy changes and changes to the Australian Accounting Standards.
  • Key changes include:
    •  Note 27 – Fair value measurement: changes reflect AASB 2015-7 providing relief from certain disclosures in AASB 13 Fair Value Measurement.
    • Note 28: will capture (in one place) changes in accounting policies, accounting estimates and errors.
    • Special Schedule 7 – Report on Infrastructure Assets: Special Schedule 7 changes include:
      • refined asset categories and more clearly defined asset classes, renewals, condition and condition ratings, required and actual asset maintenance: and
      • the introduction of an additional ratio calculating the cost to bring infrastructure assets to an agreed level of service set by a council.
    • Appendix J – Significant changes to 2016/17 Code due to accounting standards changes: in preparation for AASB 124 – Related Party Disclosures commencing 1 July 2016, guidance and an example Note have been developed to assist councils to become familiar with the additional disclosures.
  • Updates on the previous Code are highlighted for ease of reference.

Where to go for further information

Tim Hurst
Acting Chief Executive