Summary of changes for 2016-17

Local Government Model Financial ReportCHANGE REFERENCENew 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 3Text 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 25Superannuation 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 GuideCHANGE REFERENCENew 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. G30Additional guidance on asset recognition thresholds and useful lives. G33New 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. G42Additional guidance on gains and losses. G55Updated 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. G90New 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. ReferencesCorrected 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’shea@delwp.vic.gov.au.