Tropical Council illustrative financial statements for 2014-15
To inform local governments:
- that a set of illustrative general purpose financial statements for Queensland councils (Tropical) for the year ending 30 June 2015 is available on the Department of Infrastructure, Local Government and Planning (the Department) website; and
- about the changes to this year's Tropical.
View the Tropical statements ( 875 KB).
These statements are illustrative only. Councils should make their own judgements, based on relevance and materiality, on what should and should not be included in their financial statements.
Also on the website and included in Tropical are the 'prescribed forms' required under the City of Brisbane Regulation 2012 and the Local Government Regulation 2012 - i.e. the Certificate given by the Mayor and Chief Executive Officer of council in relation to the General Purpose Financial Statements (consolidated and non-consolidated), and the certificates in relation to the current year financial sustainability statement and long-term financial sustainability statement.
Local governments are required to prepare audited annual financial statements that comply with local government legislation and the Australian Accounting Standards.
To assist councils, the Department prepares a set of example annual financial statements each year. These statements are commonly referred to as 'Tropical', and are updated each year to reflect new and amended Australian Accounting Standards and other relevant legislative requirements.
- City of Brisbane Act 2010
- City of Brisbane Regulation 2012
- Local Government Act 2009
- Local Government Regulation 2012
Communication and training
A series of information sessions were held throughout Queensland in March and May 2015. The purpose of these sessions was to:
- assist councils to use this year's illustrative financial statements;
- provide finance officers with an understanding of changes to Australian Accounting Standard requirements; and
- alert officers to relevant audit issues, including those raised in the 2013-14 audit of local government financial statements.
Changes to Tropical in 2014-15
Major amendments include:
- Updated disclosure regarding the application of new and amended Australian Accounting Standards (Note 1.G).
- New disclosure to explain the recurrent/capital classification.
- Expanded descriptions for the Tropical council's activities listed in Note 2(a). These descriptions have been expanded to include each activity's objective, as required by AASB 1052 Disaggregated Disclosures.
- Note 19: Fair Value Measurement, which provides an example of the disclosure required by AASB 13: Fair Value Measurement, has been altered slightly. The changes incorporate this year's requirement for comparative information and small improvements in disclosure. Some disclosure in this note has been condensed.
- A change of accounting policy, required by AASB 11 in certain circumstances, has been illustrated in Notes 1 and 34.
- Changes to reflect enhanced disclosure required by AASB 12.
Note that the wording of Note 32: Superannuation is largely unchanged this year even though an actuarial investigation is due 1 July 2015. Once updated information from that investigation is available this note will be updated.
Changes made since the release of the draft Tropical
At the information sessions in March 2015, council officers were provided with a draft copy of the illustrative financial statements for 2014-15.
Since the draft version of Tropical 2014-15 was released in March 2015 the Australian Accounting Standards Board has issued AASB 2015-6 Amendments to Australian Accounting Standards - Extending Related Party Disclosures to Not-for-Profit Public Sector Entities [AASB 10, AASB 124 & AASB 1049]. This standard is applicable from 1 July 2016 and will affect local government financial statements. The following disclosure has therefore been added in Note 1 G of the illustrative statements disclosing this affect for Tropical council.
To provide councils with greater guidance, two other amendments have been made since the draft version was released.
Firstly, the following commentary has been added to note 1.Z concerning the treatment of restoration costs for land that is not controlled by council:
Secondly, commentary has been added to note 16 to provide guidance to those councils that prepare separate financial statements:
Any further enquiries on this matter should be addressed to:
Mrs Samantha Cieslar
Department of Infrastructure, Local Government and Planning
PO Box 15009
Brisbane Qld 4002