The NSW Government has published its Financial Reporting Code for NSW General Government Sector Entities (TPP 20-01).
The Code sets out the financial reporting framework for all NSW General Government Sector (NSW GGS) entities. It provides a model financial reporting framework which promotes consistency across the NSW GGS. It is not mandatory in its entirety and NSW GGS entities can tailor the model to their individual circumstances. However, financial reports must be prepared in accordance with Australian Accounting Standards (AAS) and other Treasury requirements, including annual Treasury Circulars on Mandates of options and major policy decisions under AAS.
This version of the Code applies for financial years ending on or after 30 June 2020 and supersedes the previous version, issued as NSW Treasury Policy and Guidelines Paper TPP19-04.
What are the main changes?
The main change relates to the adoption of AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-for-Profit Entities and AASB 16 Leases. NSW Treasury mandates the modified retrospective approach for the adoption of AASB 15, AASB 1058 and AASB 16. Hence for the comparative financial year, the accounting standard reference for revenue is the superseded AASB 111 Construction Contracts, AASB 118 Revenue and AASB 1004 Contributions, and the accounting standard reference for leases is the superseded AASB 117 Leases.
The main changes to TPP19-04 include:
• addition of transitional disclosures upon the adoption of AASB 15, AASB 1058 and AASB 16
• addition of the new disclosure requirements subsequent to the adoption of AASB 15, AAB 1058 and AASB 16
• revised accounting policies and the related commentary on revenue and leasing
• revised disaggregation of revenue items and the related commentary on presentation
• changes to the disclosure of appropriations due to the introduction of the new concept of “deemed appropriations” in Government Sector Finance Act 2018
• Removal of financial instrument disclosures relevant to FY 17/18
Ensure relevant staff within your entity are aware of the new TPP and that it must be applied for financial year ending 30 June 2020 and thereafter. Special purpose staff agencies should refer to Treasury Circular TC15-07.
If your entity has local policies and procedures, they should be reviewed and updated to align with TPP 20-01 which, among other things, adopts AASB 15 Revenue from Contracts with Customers (AASB 15), AASB 1058 Income for Not-for-profits (AASB 1058) and AASB 16 Leases (AASB 16).