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

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: code@olg.nsw.gov.au
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