As at 30 June 2017, the following AASBs have been issued by the AASB but not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as follows: / SUMMARY VEC AASB 16 Leases The key changes 1 Jan 2019 The assessment has introduced by AASB 16 indicated that as most include the recognition of operating leases will come most operating leases on balance sheet, (which are currently not recognition of the recognised) on assets and lease balance sheet. 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 2016-4 Amendments The standard amends 1 Jan 2017 The assessment has to Australian Accounting AASB 136 Impairment of indicated that there is Standards - Recoverable Assets to remove minimal impact. Given the Amount of references to using specialised nature and Specialised depreciated replacement restrictions of public sector Assets of Not-for-Profit cost (DRC) as a measure assets, the existing use is Entities of value in use for presumed to be the highest entities. 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 1058 Income of This standard replaces 1 Jan 2019 The assessment has Entities AASB 1004 Contributions indicated that revenue from and establishes revenue capital grants that are principles for transactions provided under an the consideration to enforceable agreement that acquire an asset is have sufficiently specific significantly less than fair obligations, will now be value to enable a deferred and recognised as entity to further performance obligations its objectives. are satisfied. As a result, the timing recognition of revenue will change. NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS A description of departmental outputs performed during the year ended 30 June 2017, and the objectives of these outputs, are summarised below.
As at 30 June 2017, the following AASBs have been issued by the AASB but not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as follows: / VEC AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently 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 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 2016-4 Amendments to Australian Accounting Standards - Recoverable Amount of Specialised Assets of Not-for-Profit 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. AASB 1058 Income of Entities This standard replaces AASB 1004 Contributions and establishes revenue principles for transactions the consideration to acquire an asset is significantly less than fair value to enable a entity to further its objectives. 1 Jan 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. NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS A description of departmental outputs performed during the year ended 30 June 2017, and the objectives of these outputs, are summarised below. SUMMARY
AR-2017-Full.docx