2016-08-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA   9 AUGUST 2016




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SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                 9 AUGUST 2016

           COUNCIL POLICY - Related Party Disclosures

             _¢ ) |      NOOSA                                                       Council Policy
             mm       Reel         ele                         Related Party Disclosures

             Corporate Plan Reference:                 ‘Working in partnership with our community’

             Endorsed by Chief Executive Officer:      <Date of Ordinary Meeting>

             Policy Author:                            Manager Financial Services,     Corporate Services
                                                       Department

           1   POLICY BACKGROUND

           Pursuant to section 177 of the Local Government Regulation 2012, a local government’s general
           purpose financial statements must be prepared in compliance with the following documents (each a
           prescribed accounting standard) published by the Australian Accounting Standards Board (AASB):
           (a) Australian Accounting Standards;
           (b) Statements of Accounting Concepts;
           (c) Interpretations; and
           (d) Framework for the preparation and presentation of financial statements.
           The AASB has confirmed that the requirements of AASB 124 ‘Related Party Disclosures’ will apply
           to local government annual reporting periods beginning 1 July 2016.
           The AASB provides that the objective of AASB 124 is to ensure that an entity’s financial statements
           contain the disclosures necessary to draw attention to the possibility that its financial position may
           have been affected by the existence of related parties and by transactions and outstanding balances,
           including commitments, with such parties.

           2   POLICY PURPOSE

           The purpose of this Policy is to provide guidance to Noosa Councillors and Key Management
           Personnel (KMP) to ensure Council’s compliance with AASB 124 ‘Related Party Disclosures’. This
           Policy will provide a systematic approach to discern related parties, for approved related party
           transactions and for proper identification, recording and reporting of such transactions.
           This Policy will be applied in:
            e   Identifying KMP;
            e   Identifying related party relationships and transactions;
            e   Identifying outstanding balances, including commitments, between Council and its related
               parties;
            e   Identifying the circumstances in which disclosure is required; and
            e   Determining the specific disclosures to be made.

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