AASB 2016-8 This Standard amends AASB 9 and 1 Jan 2019 The assessment has Amendments to Australian AASB 15 to include requirements to indicated that there will be no Accounting Standards assist not-for-profit entities in significant impact for the – Australian Implementation applying the respective standards to public sector, other than the Guidance for Not-for-Profit particular transactions and events. impacts identified for AASB 9 Entities The amendments: and AASB 15 above. require non-contractual receivables arising from statutory requirements (i.e. taxes, rates and fines) to be initially measured and recognised in accordance with AASB 9 as if those receivables are financial instruments; and clarifies circumstances when a contract with a customer is within the scope of AASB 15. AASB 16 Leases The key changes introduced by 1 Jan 2019 The assessment has AASB 16 include the recognition of indicated that as most most operating leases (which are operating leases will come on current not recognised) on balance balance sheet, recognition of sheet. the right-of-use assets and lease liabilities will cause net debt to increase. Rather than expensing the lease payments, depreciation of right-of-use assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus. No change for lessors. AASB 2016-4 The standard amends AASB 136 1 Jan 2017 The assessment has Amendments to Australian Impairment of Assets to remove indicated that there is minimal Accounting Standards references to using depreciated impact. Given the specialised – Recoverable Amount of replacement cost (DRC) as a nature and restrictions of Non-Cash-Generating measure of value in use for public sector assets, the Specialised Assets of entities. existing use is presumed to Entities be the highest and best use (HBU), hence current replacement cost under AASB 13 Fair Value Measurement is the same as the depreciated replacement cost concept under AASB 136.
AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities This Standard amends AASB 9 and AASB 15 to include requirements to assist not-for-profit entities in applying the respective standards to particular transactions and events. The amendments: require non-contractual receivables arising from statutory requirements (i.e. taxes, rates and fines) to be initially measured and recognised in accordance with AASB 9 as if those receivables are financial instruments; and clarifies circumstances when a contract with a customer is within the scope of AASB 15. 1 Jan 2019 The assessment has indicated that there will be no significant impact for the public sector, other than the impacts identified for AASB 9 and AASB 15 above. AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are current not recognised) on balance sheet. 1 Jan 2019 The assessment has indicated that as most operating leases will come on balance sheet, recognition of the right-of-use assets and lease liabilities will cause net debt to increase. Rather than expensing the lease payments, depreciation of right-of-use assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus. No change for lessors. AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Entities The standard amends AASB 136 Impairment of Assets to remove references to using depreciated replacement cost (DRC) as a measure of value in use for entities. 1 Jan 2017 The assessment has indicated that there is minimal impact. Given the specialised nature and restrictions of public sector assets, the existing use is presumed to be the highest and best use (HBU), hence current replacement cost under AASB 13 Fair Value Measurement is the same as the depreciated replacement cost concept under AASB 136.
FRD-120K-Accounting-and-Reporting-Pronouncements-Applicabl.docx