2019-03-12 P&E Agenda - Item 7 - Attachment 1 - NBRF FY17-18 Annual Report

‘  Noosa Biosphere Reserve Trust
              ABN 12 733 644 586

              Notes to the Financial Statements
              For the Year Ended 30 June 2018

              2    Summary of Significant Accounting Policies continued

                  (f)    New Accounting Standards and Interpretations
                         The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory
                         application dates for future reporting periods. The Trust has decided not to early adopt these Standards. The
       :                 following table summarises those future requirements, and their impact on the Trust where the standard is
                         relevant:
                                               Effective
                                               date for
                         Standard Name         entity        Requirements                        Impact
                         AASB 1058 Income of 30/06/2020      AASB 1058 supersedes all the        Grants currently received with an
                         NFP Entities           .            income recognition requirements     obligation to fund projects are
                                                             relating to private sector NFP      already recognised as a liability,
                                                             entities, and the majority of income the treatment of such grants will not
                                                             recognition requirements relating to change.
         .                                                   public sector NFP entities, previously There will be a material impact in
                                                             in AASB 1004 Contributions. The     relation to the Foundations
                                                             timing of income recognition        peppercorn lease with Noosa
                                                             depends on whether such a           Council as detailed below.
                                                             transaction gives rise to a liability or
                                                             other performance obligation (a
                                                             promise to transfer a good or
                                                             service), or a contribution by owners,
                                                             related to an asset (such as cash or
                        .                                    another asset) received by an entity.                                                      .
                         AASB 16 Leases        30/06/2020    AASB 16 will cause an increase in   The Foundation currently uses
                                                             the assets and liabilities recorded for office space under a peppercorn
                                                             most entities, whilst the net asset lease agreement. Currently there
                                                             impact on day 71 may be nil, this will are no entries in the financial
                                                             not be the case going forward as the statements, under AASB 1058 and
                                                             asset and liability will be         AASB 16, the fair value of the
                                                             amortised using different bases.    remaining right of use asset and
                                                        ,    Operating profit should increase as__ the present value of remaining
                                                             rental expense is now shown as      lease payments will be recorded in
                                                             depreciation and interest expense. _ the statement of financial position.
                                                             On an ongoing basis, there willbe   The difference between these
      /                                                      revisions to the asset and liability figures will be recorded as income.
                                                             whenever a relevant index affecting On transition, this will be recorded
                                                             payments (such as CPI) changes,     __in opening retained earnings,
                                                             the lease term changes or the lease however for all new peppercorn
                                                              is modified.                       leases, the difference will be taken          .
                                                                                                 to income. The fair value of the
                                                                                                 right to use asset has not yet been
                                                                                                 determined, advice will be sought
        ‘                                                                                        from Noosa Council as part of the
                                                                                                 June 2020 reporting process.

              3 = Critical Accounting Estimates and Judgments
                   The responsible persons have not made any significant accounting estimates or judgements which are likely to affect
;                  the future results of the Trust.

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