2016-08-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                   9 AUGUST 2016


3                        RELATED PARTY DISCLOSURE POLICY
DOCUMENT INFORM AT ION




Author                              Manager Financial Services, Wayne Jensen
                                    Corporate Services Department

Index                               ECM / 27.48 Council Policies

Attachments                         1.    Draft Related Party Disclosures Policy


EXECUTIVE SUMMARY
Changes to AASB 124 Related Parties Disclosure to extend the application to local government
from 1 July 2016 have necessitated the development of a new Council Policy as to how related
party transactions will be addressed at Noosa Council.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the Services & Organisation
Committee Meeting dated 9 August 2016 and adopt the Related Party Disclosure Policy as
contained in Attachment 1.


REPORT
Pursuant to Section 177 of the Local Government Regulation 2012, a council’s general purpose
financial statements must be prepared in compliance with the following documents published by
the Australian Accounting Standards Board (AASB):

                       Australian Accounting Standards;
                       Statement of Accounting Concepts;
                       Interpretations; and
                       Framework for the preparation and presentation of financial statements.

AASB 124 – Related Party Disclosures applies to local government from 1 July 2016. The
attached draft policy has been prepared as a means of ensuring Council is in a position to meet
its reporting obligations under the new accounting standard from that date.

As such, the policy will assist in:

                       Identifying key management personnel;
                       Identifying related party relationships and associated transactions; and
                       Identifying specific disclosures to be made in Council’s general purpose financial
                         statements each year.

It is noted that the Department of Infrastructure, Local Government and Planning have provided
broad guidelines to assist councils in the application of AASB 124, which have been applied in
the development of the Policy. As such, a separate declaration form for key management
personnel has been developed and all declarations made will be kept in a separate confidential
register developed for that purpose.

This draft Policy was presented to the May 2016 Audit and Risk Committee meeting for review
prior to adoption by Council.




                                                                                                    Page 17 of 148