Under the Local Government Act 2009, Local Government Regulation 2012, City of Brisbane Act 2010 and the City of Brisbane Regulation 2012 (the Acts) all local governments in Queensland must produce annual financial statements that comply with Australian Accounting Standards.
From 1 July 2016, the Australian Accounting Standards Board has determined that AASB 124 related party disclosures will apply to government entities, including local governments.
Related parties are likely to include:
- the mayor
- chief executive officers (CEO)
- senior executives
- their close family members and
- any entities that they control or jointly control
Any transactions between council and these parties, whether monetary or not, may need to be identified and disclosed.
See the full Bulletin on the Department of Infrastructure, Local Government and Planning website.
Resources for councils
The appendices to the Bulletin are available on the Department's website in PDF format or as word format below:
- Appendix 1 contains detailed information on how to identify related parties
- Appendix 2 lists common related parties of councils
- Appendix 3 contains examples of the format of the disclosures
- Appendix 4 includes a checklist for adopting a related parties disclosure policy
- Steps to comply with AASB 124 are found in:
COMPLIANCE WITH AASB - 124 RELATED PARTY DISCLOSURES BY LOCAL GOVERNMENT IN QUEENSLAND
As of the 1 July 2016 local governments will have a legal obligation to disclose related party relationships, transactions and outstanding balances, including commitments, in their annual financial statements. From this date, local governments should ensure that they have systems in place to identify related parties and capture transactions with them. Related parties may include mayor, councillors, chief executive officers, senior executives, close family members and any other entity that they control or jointly have control over.
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