AASB 124 – Related Party Disclosures
- Please find below the link to the agenda decision by the Australian Accounting Standards Board.
- The AASB were asked to consider whether transactions with KMP related parties would always be material in the public sector context. The AASB decided not to add this project to their active agenda and a paper has been released to support this decision.
- The paper which can be accessed by clicking the link, may provide some additional guidance to Councils in assessing their KMP related transaction and determining whether they should be disclosed. The disclosure of these transactions will continue to be based on Councils policies and will involve judgement. Note that the Accounting Code provides some guidance and examples however Councils should make their determination in accordance with their specific policy and assessment of materiality.
Code update 24 Appendix J provides guidance on the adoption of AASB 124.
A Webinar on AASB 124 Related Party Disclosures was held on Wednesday, 12 October 2016. For those unable to attend the webinar, the session was recorded and is available on this webpage along with the presentation slides and a Questions and Answers document which has been recently updated in January 2017. Links to the draft code Update 25 webinar presentation slides and Questions and Answers documents are provided below.
- OLG Presentation Slides - AASB124 Related Party Transactions Webinar - 12 October 2016
- OLG - Questions and Answers - AASB124 Related Party Transactions Webinar - 12 October 2016
To further assist councils in preparing the necessary policies and procedures to implement AASB 124 requirements, the following external links are made provided:-
1. Qld Department of Infrastructure, Local Government and Planning
2. Samples of Local Government Policies:
- McInlay Shire Council - Related Party Disclosures Policy
- Tablelands Regional Council - Related Party Disclosures Policy
- Quilpie - Related Party Disclosures Policy
- Gladstone Regional Council - Related Party Disclosures Policy
- Southern Downs Council Regional Council - Related Party Disclosure Policy
- Carence Valley Council - Related Party Disclosures
- Tweed Shire Council - Related Party Transactions Policy
3. NSW Treasury
- Frequently asked questions - Implementing AASB 124 Related Party Disclosures
Pecuniary Interest disclosures vs AASB 124 disclosures
The attached ‘Pecuniary Interest Disclosure and AASB 124’ document highlights the comparisons and contrasts between pecuniary interest disclosures and related party disclosures, relating to KMP. This document considers the purpose and content of the pecuniary interest form and the AASB 124 disclosures.