Pecuniary Interest Form and AASB 124 Related Party Transaction disclosures AASB 124 disclosures in the financial statements Pecuniary Interest Form (schedule 3 – form of return – disclosure of interest) Purpose of the disclosure Disclose transactions between the Council and related parties of the Council to inform of the financial statements Disclose transactions that result in the Councillor getting a gain or loss because of their position on the Council or conflicts of interest Relevant legislation Local Government Act AASB 124 Local Government Act – chapter 14 Government Regulation 2005 – part 8 What is included? Transactions between the Council and related parties of the Council. Pecuniary interest - “an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person” Who needs to be considered? Key management personnel (KMP) Close family members of KMP Related entities of The councillors The general manager senior staff of the Council Person who the position of a
You, a your partner or your being a member of a or other body that has a interest. Exemptions Non-material transactions, including those transactions available to all members of the public on the same The following are not considered pecuniary interests: An interest as an elector Liable to pay charge such
Reference (AASB 124 or PIF) 1.1 Requirement Included in financial statements Included in the Pecuniary Interest Form (PIF) AASB 124.17 The entity discloses key management personnel compensation in total and for each of the following categories: shortterm employee benefits; benefits; other longterm benefits; termination benefits; and sharebased payment? X Persons do not have to disclose a pecuniary interest if it relates only to salary as member of staff or to other conditions of employment AASB 124.18 If there have been transactions between related parties, the entity discloses the nature of the related party relationship and sufficient information about The name of the related party will be disclosed in the PIF but the dollar value
of the entity or its parent; and g. related parties? AASB 124.24 The entity discloses of a similar nature in aggregate except when separate disclosure is necessary for an understanding of the effects of related party transactions on the financial statements of the entity? Level of not discussed PIF section A – Real property Address of each parcel of real property in which Councillor has an interest and description of the nature of the interest X PIF section B - Sources of income: If income expected to be received from an occupation: of X
Description of any other income expected to be received. PIF section C - Gifts Description of each gift received at any time during the return period X No specific however if the gift was material and given due to the Councillor’s role as a Councillor then may be captured by the note. PIF section D - Contributions to travel name and address of each person who made any financial or other contribution to any travel undertaken any at time X requirement
during the return period dates on which travel was undertaken names of places visited PIF section E – Interests and positions in corporations name and address of each corporation in which an interest or position was held nature of interest description of position description of principal objects of corporation (except for listed company) Name and value of transactions if the entity was related to Council PIF section F – Positions in trade unions and name of trade union in which position was X
professional or business associations held description of position PIF Section G – debts name and address of each person to whom the Councillor was liable to pay any debt X PIF Section H – dispositions of property particulars of each disposition of real property as a result of which was retained, either wholly or in part, the use and benefit of the property or the right to re-acquire the property at a later time X PIF Section I - discretionary disclosures Little guidance provided