AASB 16 Leases The key changes 1 Jan 2019 The assessment has introduced by AASB indicated that as most 16 include the operating leases will recognition of most come on balance operating leases sheet, recognition of (which are currently lease assets and lease not recognised) on liabilities will cause net the balance sheet. debt to increase. Depreciation of lease assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus. The amounts of cash paid for the principal portion of the lease liability will be presented within financing activities and the amounts paid for the interest portion will be presented within operating activities in the cash flow statement. AASB 1058 This standard will 1 Jan 2019 The assessment has Income of replace AASB 1004 indicated that revenue Entities Contributions and from capital grants establishes principles that are provided for transactions that an enforceable are not within the agreement that have scope of AASB 15 sufficiently specific Revenue From obligations will now be Contracts with deferred and Customers, where recognised as the consideration to performance acquire an asset is obligations that are significantly less than satisfied. As a result, fair value to enable the timing recognition not-for-profit entities of revenue will to further their change. objectives. In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2016–17 reporting period. In general, these amending standards include editorial and
AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently not recognised) on the balance sheet. 1 Jan 2019 The assessment has indicated that as most operating leases will come on balance sheet, recognition of lease assets and lease liabilities will cause net debt to increase. Depreciation of lease assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus. The amounts of cash paid for the principal portion of the lease liability will be presented within financing activities and the amounts paid for the interest portion will be presented within operating activities in the cash flow statement. AASB 1058 Income of Entities This standard will replace AASB 1004 Contributions and establishes principles for transactions that are not within the scope of AASB 15 Revenue From Contracts with Customers, where the consideration to acquire an asset is significantly less than fair value to enable not-for-profit entities to further their objectives. 1 Jan 2019 The assessment has indicated that revenue from capital grants that are provided an enforceable agreement that have sufficiently specific obligations will now be deferred and recognised as performance obligations that are satisfied. As a result, the timing recognition of revenue will change. In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2016–17 reporting period. In general, these amending standards include editorial and