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: NilAttachments: 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

Tim Hurst
Chief Executive