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Local Government Model Financial Report (LGMFR) 2013-14

Local Government Model Financial Report (LGMFR) 2013-14. Daniel O’Shea Finance and Business Analyst Local Government Victoria. Background. Why prepare a Model Financial Report?

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Local Government Model Financial Report (LGMFR) 2013-14

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  1. Local Government Model Financial Report (LGMFR) 2013-14 Daniel O’Shea Finance and Business Analyst Local Government Victoria

  2. Background • Why prepare a Model Financial Report? • Support councils in meeting their reporting obligations under the Local Government Act 1989 and compliance with the Australian Accounting Standards • Provide guidance and promote consistency in financial reporting • Encourage transparency and integrity in council financial statements and disclosures

  3. Background • Who’s involved? • Collaboration between Local Government Victoria and key stakeholders • Advisory working group formed with representatives from LGV, CPA Australia, FinPro and VAGO • Crowe Horwath assist with updating the LG model financial report and provide technical advice • Production assistance from CPA Australia

  4. What’s changed for 2013-14? Accounting Standards AASB 13 Fair Value Measurement • Effective for reporting periods beginning on or after 1 January 2013 • Describes how to measure Fair Value when required / permitted by other accounting standards • Requires application of a Fair Value hierarchy • Contains additional disclosure requirements

  5. What’s changed for 2013-14? Accounting Standards AASB 119 Employee Benefits • Effective for reporting periods beginning on or after 1 January 2013 • Changes the definition of short-term employee benefits • Now defined as employee benefits expected to be settled wholly before twelve months after the end of the reporting period in which the employees render the related service • Impact on accrued annual leave balances which are now classified as long-term benefits

  6. What’s changed for 2013-14? Accounting Standards AASB 119 Employee Benefits (continued) • Resultant change of measurement for that portion of AL from nominal to Present Value (discounted) basis • Enhancements to support the note disclosure on Defined Benefit Superannuation have also been included • Includes added text on potential need for councils to provide additional funds (eg. calls) • Also increased disclosure of most recent actuarial assessment of the fund and number of council staff who are members

  7. What’s changed for 2013-14? Transition to the new 2014-15 reporting regime Asset Classes • Property, Infrastructure, Plant and Equipment (Note 22) contains additional asset classes • Also reflected in updated asset classes under Capital Expenditure (Note 47) • Both changes signal more detailed and consistent disclosures on asset classes proposed under the 2014-15 reporting regime

  8. What’s changed for 2013-14? Transition to the new 2014-15 reporting regime Statement of Capital Works • The proposed Local Government (Planning and Reporting) Regulations 2014 require the financial statements to contain a Statement of Capital Works • Statement of Capital Works will include more detailed asset classes • Due to transitional requirements a Statement of Capital Works has been included in this year’s Local Government Model Financial Report • This requirement will satisfy the reporting linkage between the budget and the LGMFR during transition

  9. Availability When is it available and where do I find it? Available to access online next week • Currently subject to final quality assurance processes before publishing • Accessible on Local Government Victoria website and via link from CPA Australia website • URL: http://www.dpcd.vic.gov.au/localgovernment/publications-and-research/asset-management-and-financial

  10. Daniel O’Shea Finance and Business Analyst, Local Government Victoria daniel.o’shea@dtpli.vic.gov.au (03) 9208 3839 For more information

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