Notes to the Financial Statements for the year ended 30 June 2016
Note 1 . Significant Accounting Policies ( continued )
At the date of authorisation of the financial report , AASB 9 Financial Instruments and AASB 2015-6 Amendments to Australian Accounting Standards - Extending Related Party Disclosures to Not-for-Profit Public Sector Entities are the only new accounting standards with a future application date that are expected to have a material impact on Council ' s financial statements .
From 1 July 2016 AASB 124 Related Party Disclosures will apply to Council , which means that Council will disclose more information about related parties and transactions with those related parties .
AASB 9 , which replaces AASB 139 Financial Instruments : Recognition and Measurement , is effective for reporting periods beginning on or after 1 January 2018 and must be applied retrospectively . The main impact of AASB 9 is to change the requirements for the classification , measurement and disclosures associated with financial assets . Under the new requirements the four current categories of financial assets stipulated in AASB 139 will be replaced with two measurement categories : fair value and amortised cost and financial assets will only be able to be measured at amortised cost where very specific conditions are met .
As a result , Council will be required to measure its financial assets at fair value .
Council is still reviewing the way that revenue is measured and recognised to identify whether AASB 15 Revenue from Contracts with Customers will have a material impact . To date no impact has been identified .
AASB 15 Revenue from Contracts with Customers is effective from 1 January 2018 and will replace AASB 118 Revenue , AASB 111 Construction Contracts and a number of Interpretations . It contains a comprehensive and robust framework for the recognition , measurement and disclosure of revenue from contracts with customers .
Other amended Australian Accounting Standards and Interpretations which were issued at the date of authorisation of the financial report , but have future commencement dates , are not likely to have a material impact on the financial statements .
1 . f Critical accounting judgements and key sources of estimation uncertainty
In the application of Council ' s accounting policies , management is required to make judgements , estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources . The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant . Actual results may differ from these estimates . The estimates and ongoing assumptions are reviewed on an ongoing basis . Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant .
Judgements , estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes :
� Valuation and depreciation of property , plant and equipment - note 1 . j and note 12 & 13 � Provisions - note 1 . l , 1 . n and note 17 � Contingent liabilities - note 20
1 . g Revenue Rates and levies
Where rate monies are received prior to the commencement of the rating / levying period , the amount is recognised as revenue in the period in which they are received , otherwise rates are recognised at the commencement of rating period .
Grants and subsidies
Grants , subsidies and contributions that are nonreciprocal in nature are recognised as revenue in the year in which Council obtains control over them . Internal restrictions that have been placed on Council ' s cash and cash equivalents are disclosed in Note 10 .
Where grants are received that are reciprocal in nature , revenue is recognised as the various performance obligations under the funding agreement are fulfilled . Council does not currently have any reciprocal grants .
TOOWOOMBA REGIONAL COUNCIL Annual Report 2015 - 2016 Financial report CHAPTER 6 143