Local Government Bulletins
New financial instruments note - Tropical Council illustrative financial statements for 2012-13 (Note 39)
This bulletin is to advise local governments that a new example financial instruments note is available for the year ending 30 June 2013 on the Department of Local Government, Community Recovery and Resilience's (the department's) website. This bulletin also notifies local governments about the changes to the example note.
The example note (note 39) ( 54 KB) is attached to this bulletin. The Tropical Council illustrative financial statement template (Tropical) on the department's website will be updated to include this new example note, which was drafted after the release of Tropical for 2012/13.
Local governments are required to prepare audited annual financial statements that comply with local government legislation and the Australian Accounting Standards.
To assist with this, the department prepares a set of example annual financial statements each year. These statements are commonly referred to as 'Tropical', and are updated each year to reflect new and amended Australian Accounting Standards and other relevant legislative requirements.
As a result of feedback from local governments, the department has reviewed the example financial instruments note included in Tropical (Note 39). Following this review, a new and enhanced note 39 has been compiled. There have not been any Australian Accounting Standard changes relating to financial instruments this financial year. The example note has simply been enhanced to meet existing requirements more completely.
Changes to example note 39
Key changes to the example note have been made in the following areas:
- Expanded financial risk management disclosures
- New credit risk disclosures for investments in the QTC Working Capital Facility
- Refined ageing of receivables table
- New market risk definition
- Interest rate risk sensitivity disclosures modified to include both upside and downside risk in tabular format
- New interest rate risk disclosures specifically for QTC's debt products
- Expanded fair value disclosures explaining how QTC calculates market value of outstanding debt and how this contrasts to the book value
- New disclosure of fair values together with carrying values of financial assets and financial liabilities
- Fair value hierarchy definitions refined and disclosure modified to cover both Consolidated and Council; and
- Additional instructions included on the fair value hierarchy requirements (for significant transfers between levels and reconciliation requirements).
Any further enquiries on this matter should be addressed to:
Ms Samantha Cieslar
Principal Project Officer
Department of Local Government, Community Recovery and Resilience
PO Box 15009
Brisbane QLD 4002
The department acknowledges the assistance provided by QTC in developing this example note.
Last updated: Monday, Nov 30, 2020