HORSHAM RURAL CITY COUNCIL


NOTES TO THE FINANCIAL STATEMENTS (Cont.) FOR THE YEAR ENDED 30th JUNE, 2014


1 SIGNIFICANT ACCOUNTING POLICIES (continued) (x) Pending Accounting Standards (cont.)


Pronouncement


AASB 11 Joint Arrangements


Summary


This Standard deals with the concept of joint control, and sets out a new principles-based approach for determining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.


AASB 12 Disclosure of Interests in Other Entities


This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 Separate Financial Statements and AASB 131 Interests in Joint Ventures.


The exposure draft ED 238 proposes to add some implementation guidance to AASB 12, explaining and illustrating the definition of a ‘structured entity’ from a not-for-profit perspective.


AASB 127 Separate Financial Statements


This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.


AASB 128 Investments in Associates and Joint Ventures


AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounts Standard arising from Reduced Disclosure Requirements


This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.


These standards set out the tiers of financial reporting and the reduced disclosure framework.


1 Jul 2014


The impact of this standard will need to be assessed in line with the final deliberations by the AASB on the application of this standard to not for profit entities.


1 Jul 2014


The impact of this standard will need to be assessed in line with the final deliberations by the AASB on the application of this standard to not for profit entities.


1 Jul 2014


Council has yet to determine the impact of this standard


Application date 1 Jul 2014


Impact on Council


The AASB have finalised deliberations and any modifications made to AASB 11 for not-for-profit entities, Council will need to assess the nature of arrangements with other entities in determining whether a joint arrangement exists in light of AASB 11.


1 Jul 2014


Impacts on the level and nature of the disclosures will be assessed based on the eventual implications arising from AASB 10, AASB 11 and AASB 128 Investments in Associates and Joint Ventures.


Annual Report 2013-2014 q Page 17


98


(y) Contingent assets and contingent liabilities and commitments Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.


Commitments are not recognised in the Balance Sheet. Commitments are disclosed at their nominal value by way of a note and are inclusive of the GST payable.


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