financial instruments; and clarifies circumstances when a contract with a customer is within the scope of AASB 15. AASB 16 The key changes 1 January 2019 The assessment has Leases introduced by AASB 16 indicated that as most include the recognition of operating leases will come most operating leases on balance sheet, (which are current not recognition of the recognised) on balance assets and lease sheet. liabilities will cause net debt to increase. Rather than expensing the payments, depreciation of 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 1 January 2017 The assessment has AASB 136 Impairment of indicated that there is Amendments to Australian Accounting Standards Assets to remove minimal impact. Given the – Recoverable Amount of references to using specialised nature and Non-Cash-Generating depreciated replacement restrictions of public cost (DRC) as a measure sector assets, the existing Specialised Assets of Entities of value in use for use is presumed to be the entities. 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 This standard replaces 1 January 2019 The assessment has Income of Not-for-Profit AASB 1004 Contributions indicated that revenue Entities and establishes revenue from capital grants that recognition principles for are provided under an transactions where the enforceable agreement consideration to acquire that have sufficiently an asset is significantly specific obligations, will less than fair value to now be deferred and enable to not-for-profit recognised as entity to further its performance obligations objectives. are satisfied. As a result, the timing recognition of revenue will change.
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 AASB 16 include the recognition of most operating leases (which are current 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 payments, depreciation of 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 January 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 Not-for-Profit 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 to not-for-profit entity 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.
AnnualReport2016-2017wordwebversion.docx