AASB 16 Leases The key changes introduced by 1 January The assessment has AASB 16 includes the recognition 2019 indicated that as most of most operating leases (which operating leases will come are currently not recognised) on on balance sheet, balance sheet. recognition of the 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. AASB 1058 This standard replaces AASB 1 January The assessment has Income for 1004 Contributions and 2019 indicated that revenue from Entities establishes revenue recognition capital grants that are principles for transactions where provided under an the consideration to acquire an enforceable agreement that asset is significantly less than fair have sufficiently specific value to enable not-for-profit obligations, will now be entities to further its objectives. deferred and recognised as performance obligations are satisfied. As a result, the timing recognition of revenue will change. 8.10 Changes to accounting policies Subsequent to the 2015–16 reporting period, the following new and revised Standards have been adopted in the current period with their financial impact detailed as below. Australian Accounting Standard AASAB 124 commenced on 1 July 2016. Related Party Disclosures This standard extends the scope of related party disclosures to not-for-profit public sector entities, which results in additional disclosures in relation the key management personnel and related party transactions (refer to Note 8.5). 8.11 Glossary of technical terms Amortisation is the expense that results from the consumption, extraction or use over time of a non-produced physical or intangible asset. This expense is classified as an economic ‘other flow’. Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources. Comprehensive result is the amount included in the operating statement representing total change in net worth other than transactions with owners as owners.
AASB 16 Leases The key changes introduced by AASB 16 includes the recognition of most operating leases (which are currently not recognised) on balance sheet. 1 January 2019 The assessment has indicated that as most operating leases will come on balance sheet, recognition of the 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. AASB 1058 Income for Entities This standard replaces AASB 1004 Contributions and establishes revenue recognition principles for transactions where the consideration to acquire an asset is significantly less than fair value to enable not-for-profit entities to further its objectives. 1 January 2019 The assessment has indicated that revenue from capital grants that are provided under an enforceable agreement that have sufficiently specific obligations, will now be deferred and recognised as performance obligations are satisfied. As a result, the timing recognition of revenue will change. 8.10 Changes to accounting policies Subsequent to the 2015–16 reporting period, the following new and revised Standards have been adopted in the current period with their financial impact detailed as below. Australian Accounting Standard AASAB 124 Related Party Disclosures commenced on 1 July 2016. This standard extends the scope of related party disclosures to not-for-profit public sector entities, which results in additional disclosures in relation the key management personnel and related party transactions (refer to Note 8.5). 8.11 Glossary of technical terms Amortisation is the expense that results from the consumption, extraction or use over time of a non-produced physical or intangible asset. This expense is classified as an ‘other economic flow’. Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources. Comprehensive result is the amount included in the operating statement representing total change in net worth other than transactions with owners as owners.
vla-annual-report-2016-17-final.docx