instruments simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred. sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed. Standard / Interpretation Summary Applicable for annual reporting periods beginning after Impact AASB 15 Revenue from Contracts with Customers The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. 1 Jan 2018 The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding. 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 Jan 2019 The assessment has indicated that as most operating leases will come on balance sheet, recognition of lease assets and lease liabilities will cause net debt to increase. Depreciation of lease assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus. The amounts of cash paid for the principal portion of the lease liability will be presented within financing activities and the amounts paid for the interest portion will be presented within operating activities in the cash flow statement. No change for lessors. AASB 2015–16 Amendments to Australian accounting standards – extending Related Party Disclosures to not-for-profit public sector – The amendments extend the scope of AASB 124 Related Party Disclosures to not-for-profit public sector entities. A guidance has been included to assist the application of the standard by not-for-profit public sector entities. 1 Jan 2016 The amending standard will result in extended disclosures on the entity’s Key Management Personnel (KMP) and the related party transactions.
Table 21.1 ($’000) 2016 Contractual financial assets / liabilities designated at fair value through profit or loss Contractual financial assets loans and receivables Contractual financial liabilities at amortised cost Total Contractual financial assets Cash and deposits 0 255,471 0 255,471 Receivables 0 20,706 0 20,706 Investments and other contractual financial assets: - Managed investment schemes 271,180 0 0 271,180 - Term deposits > 3 months 0 0 0 0 Total contractual financial assets 271,180 276,177 0 547,357 Contractual financial liabilities Payables: - Trade creditors and other payables 0 0 163,230 163,230 - Accrued capital works 0 0 17,538 17,538 - Salary and wages 0 0 9,916 9,916 - Amounts payable to government 0 0 1,427 1,427 Borrowings: - Finance lease liabilities 0 0 188,765 188,765 Total contractual financial liabilities 0 0 380,876 380,876 ($’000) 2015 Contractual financial assets / liabilities designated at fair value through profit or loss Contractual financial assets loans and receivables Contractual financial liabilities at amortised cost Total Contractual financial assets Cash and deposits 0 280,556 0 280,556 Receivables 0 23,713 0 23,713 Investments and other contractual financial assets: - Managed investment schemes 226,064 0 0 226,064 - Term deposits > 3 months 0 7,500 0 7,500 Total contractual financial assets 226,064 311,769 0 537,833 Contractual financial liabilities Payables: - Trade creditors and other payables 0 0 135,586 135,586 - Accrued capital works 0 0 151,998 151,998 - Salary and wages 0 0 5,487 5,487 - Amounts payable to government 0 0 1,665 1,665 Borrowings: - Finance lease liabilities 0 0 200,671 200,671 Total contractual financial liabilities 0 0 495,407 495,407 (i) Amounts disclosed in this table exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable and tax payable).