Summary of changes for 2016-17

Local Government Model Financial Report

CHANGE / REFERENCE
New sequential numbering system introduced for reference of LGV financial guidance documents (eg. FG 4 – 2017 – LGMFR 2016-17) / Cover Page
Note 18 and 19 swapped so that Cash and cash equivalents (Note 17) and Other financial assets (now Note 18) are sequential. As a result Trade and other receivables moves to Note 19. / Table of Contents
Note references for Trade and other receivables and Other financial assets changed in line with above Table of Contents changes. / Balance Sheet
Text amended to reflect that receivables are carried at invoice amount. / Note 1(i)
Text stating ‘Inventories are measured at the lower of cost and net realisable value’ removed. / Note 1(k)
Dash added to depreciation period column for road formation and earthworks to reflect that this line item is not depreciated consistent with the text earlier in Note 1(n) / Note 1(n)
Text stating ‘comprising freehold office complexes’ removed. / Note 1(p)
Text added to Pending Accounting Standards disclosure for AASB 15 Revenue from contracts with customers and AASB 16 Leases. Both standards are applicable to future accounting periods. / Note 1(z)
Interest on rates and charges added as a line item. / Note 3
Text changed to ‘Refer also to Note 18 for details of other financial assets held by Council.’ / Note 17
·  Other financial assets moved from Note 19 previously to Note 18.
·  Under Ageing of Receivables sub-heading text stating ‘These amounts relate to a number of independent customers for whom there is no recent history of default’ removed. / Note 18
·  Trade and other receivables moved from Note 18 previously to Note 19.
·  Additional sub-headings added under both current and non-current to distinguish between ‘statutory’ and ‘non-statutory’ receivables. / Note 19
Line item for ‘Borrowing costs capitalised’ removed. / Note 21
·  Additional columns added to Summary of property, infrastructure, plant and equipment to show acquisitions, contributions, revaluation, depreciation, disposal and transfer movements (converting original summary into a movement schedule).
·  Additional line item for contributed assets added to movements in fair value for Land and Buildings, Plant and Equipment and Infrastructure tables.
·  Text added to Valuation of land and buildings and Valuation of infrastructure sections covering index based valuations and specifying timing of valuations. / Note 23
Simplified disclosures. / Note 25
Superannuation note updated to reflect latest available information. / Note 35
·  Note updated to reflect the application of AASB 124 Related Party Disclosures to the public sector for the first time in 2016-17 including Key Management Personnel terminology.
·  Updated Senior Officer remuneration threshold to $142,000. / Note 38
Corrected various spelling, typographical, formatting and other minor issues with the model. / LGMFR

Summary of changes for 2016-17 (continued)

Better Practice Guide

CHANGE / REFERENCE
New sequential numbering system introduced for reference of LGV financial guidance documents (eg. FG 1 – 2017 – LGMFR – Better Practice Guide) / Cover Page
Introductory remarks from the Executive Director of Local Government Victoria have been included in the 2016-17 version. / A message from LGV
Text added to reference the Australian National Audit Office (ANAO) better practice guide ‘Public Sector Financial Statements: High Quality Reporting through Good Governance and Processes’. / Context and development of guidance
Clarification that the Comprehensive Income Statement is not to include an underlying result. / G4
Updated reference to 2015-16 Model Report for Victorian Government Departments. / G11
Additional guidance on the timing requirements for the inclusion of expenditure in the Statement of Capital Works. / G20
Additional guidance added on heritage assets. / G30
Additional guidance on asset recognition thresholds and useful lives. / G33
New guidance on impairment of assets as a result of flood events and link to separate guidance on Accounting for Natural Disasters. / G35A
Clarification of impairment test requirements and new reference and link to separate guidance on Accounting for Landfills. / G37
Updated guidance on pending accounting standards to reflect change to model and reinforce onus on each council to ensure disclosures are adequate. / G41
Additional guidance on explaining significant or unusual movements. / G42
Additional guidance on gains and losses. / G55
Updated reference to 2015-16 Model Report for Victorian Government Departments. / G67
Additional guidance on inclusions in the Statement of Capital Works and the Note 23 fixed asset disclosures. / G73
Additional guidance on potential credit risks associated with community groups. / G90
New text, reference and link to separate guidance on Accounting for Related Party Disclosures due to AASB 124 Related Party Disclosures becoming applicable to the public sector in 2016-17. / G91
Updated references for new and latest versions of documents. / References
Corrected various spelling, typographical, formatting and other minor issues with the Better Practice Guide including updating to the new DELWP report template. / BPG

For any queries in relation to these changes please contact:

Daniel O’Shea, Finance and Business Analyst , Local Government Victoria on 9948 8531 or daniel.o’.