Circulars

What’s new or changing

• The draft Code of Accounting Practice and Financial Reporting (Code) (update 28) has been released for comment.
• Guidance material on AASB 16 Leases, AASB 15 Revenue from Contracts with Customers and AASB1058 Income of Not‑for-Profit Entities.

What this will mean for your Council/Joint Organisation (JO)

• Councils and JOs are invited to provide feedback on the draft Code (Update No. 28) by Friday 31 January 2020 to: code@olg.nsw.gov.au.
• Councils are strongly encouraged to review Guidance material to support councils with the implementation of the new Accounting Standards AASB 16, 15 and 1058.

Key points

• The Office of Local Government (OLG) has prepared the draft Accounting Code (update 28) for consultation in response to sector feedback, policy changes and changes to the Australian Accounting Standards.
• OLG recommends that councils and JOs carefully review the Summary of proposed changes document accompanying the draft Code.
• New changes for this year are highlighted in yellow. Commentary in red relates to OLG requirements and commentary in blue relates to the Australian Accounting Standards.
• There are no new OLG requirements in the Code this year.
• To support understanding of the proposed changes to the Code, a webinar recording and a Questions and Answers document will be made available shortly via OLG’s Website.
• OLG has prepared guidance material to support the implementation of the new Accounting Standards AASB 16, 15 and 1058. This material has been made available to all Councils via Objective Connect.
• Any questions or further clarifications relating to the draft Code, other documentation and guidance material can be submitted to code@olg.nsw.gov.au.

Where to go for further information

• OLG’s website has the
  • Code comprising of five documents:
    1. General Purpose Financial Statements
    2. Special Purpose Financial Statements
    3. Special Schedules
    4. Joint Organisation Supplement
    5. Appendices.
  • Summary of changes document to the Code (update 28)
• Guidance material will be made available via Objective Connect
• OLG’s Accounting Practice page can be found here: www.olg.nsw.gov.au/strengthening-local-government/supporting-and-advising-councils/accounting-practice

Tim Hurst

Deputy Secretary

Local Government, Planning