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Tropical for 2015-16

Purpose

This bulletin is to advise local governments that a set of illustrative general purpose financial statements for Queensland councils (PDF icon 1.41 MB) (Tropical) for the year ending 30 June 2016 are available on the Department of Infrastructure, Local Government and Planning’s (the department) website. This bulletin also notifies local governments about the changes to this year’s Tropical.

Tropical can be found on the department’s website.

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.

Background

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.

Applicable legislation

Communication and training

A series of information sessions were held throughout Queensland in late February and March 2016. The purpose of these sessions was to:

  • assist councils to use this year’s Tropical
  • provide finance officers with an understanding of changes to Australian Accounting Standard requirements
  • alert officers to relevant audit issues, including those raised in the 2014–15 audit of local government financial statements.

Changes to Tropical in 2015–16

The changes that have been made in Tropical for 2015–16 are identified by orange coloured shading. This feature is designed to assist councils to quickly identify those changes that are relevant to a particular local government.

Summary of Major Changes to the Tropical for 2015–16

Major amendments include:

  • Updated disclosure regarding the application of new and amended Australian Accounting Standards (Note 1.G).
  • Amended disclosure in Note 19: Fair Value Measurement, arising from the early adoption of AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities. This amending standard provides some relief from disclosure for certain level 3 valuations.
  • The addition of tips and ideas for the simplification of financial statements. The department recommends that all councils review their financial statements for simplification opportunities this year.
  • Amendments to the wording of Note 32: Superannuation as a result of the actuarial investigation undertaken on 1 July 2015.

Further Information

Any further enquiries on this matter should be addressed to:

Mrs Samantha Cieslar
Department of Infrastructure, Local Government and Planning
PO Box 15009
City East
Brisbane QLD 4002