instruments simplified requirements for the sale (AFS) assets will now be classification and measurement reported through other of financial assets, a new hedging comprehensive income (OCI) and no accounting model and a revised longer recycled to the profit and loss. impairment loss model to While the preliminary assessment recognise impairment losses has not identified any material earlier, as opposed to the current impact arising from AASB 9, it will approach that recognises continue to be monitored and impairment only when incurred. assessed. Applicable for annual Standard / reporting periods Interpretation Summary beginning after Impact AASB 15 The core principle of AASB 15 1 Jan 2018 The changes in revenue recognition Revenue from requires an entity to recognise requirements in AASB 15 may result Contracts with revenue when the entity satisfies in changes to the timing and amount Customers a performance obligation by of revenue recorded in the financial transferring a promised good or statements. The Standard will also service to a customer. require additional disclosures on service revenue and contract modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding. AASB 16 Leases The key changes introduced by 1 Jan 2019 The assessment has indicated that AASB 16 include the recognition as most operating leases will come of most operating leases (which on balance sheet, recognition of are current not recognised) on lease assets and lease liabilities will balance sheet. 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. No change for lessors. AASB 2015–16 The amendments extend the 1 Jan 2016 The amending standard will result in extended disclosures on the Key Amendments to scope of AASB 124 Related Party entity’s Management Personnel (KMP) and the Australian Disclosures to not-for-profit public related party transactions. accounting sector entities. A guidance has standards been included to assist the – extending application of the standard by Related Party not-for-profit public sector Disclosures to entities. not-for-profit public sector –
instruments simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred. sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed. Standard / Interpretation Summary Applicable for annual reporting periods beginning after Impact AASB 15 Revenue from Contracts with Customers The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. 1 Jan 2018 The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding. 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 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. No change for lessors. AASB 2015–16 Amendments to Australian accounting standards – extending Related Party Disclosures to not-for-profit public sector – The amendments extend the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities. A guidance has been included to assist the application of the standard by not-for-profit public sector entities. 1 Jan 2016 The amending standard will result in extended disclosures on the entity’s Key Management Personnel (KMP) and the related party transactions.
2djrannualreport-16financial.docx