Royal Botanic Gardens Victoria Annual Report 2018-19

8. OTHER DISCLOSURES
8.9.2 Changes to impairment
Under AASB 9, all loans and receivables at amortised cost are subject to AASB 9's new expected credit loss (ECL) impairment model,
which replaces AASB 139's incurred loss approach.
The Board applies the AASB 9 simplified approach to measure expected credit losses based on the change in the ECLs over the life of the
asset. Application of the lifetime ECL allowance method has not resulted in the recognition of an impairment loss allowance.
8.10 Australian Accounting Standards issued that are not yet effective
Certain new AAS have been published that are not mandatory for the 30 June 2019 reporting period. The DTF assesses the impact of
these new standards and advises the Board of their applicability and early adoption where applicable.
The table below outlines the accounting standards that have been issued but are not yet effective for the 2018-19 reporting period, which
may result in potential impacts on the Board's reporting for future periods:
Standard/
Interpretation
AASB 15 Revenue
from Contracts with
Customers
Summary
The core principle of AASB 15 requires an
entity to recognise revenue when the entity
satisfies a performance obligation by
transferring a promised good or service to
a customer. Note that amending standard
AASB 2015 8 Amendments to Australian
Accounting Standards – Effective Date of
AASB 15 has deferred the effective date
of AASB 15 to annual reporting periods
beginning on or after 1 January 2018,
instead of 1 January 2017 for Not-for-Profit
entities.
Application
for annual
reporting
periods:
1 Jan 2019
Impact on Board's Financial Statements
The changes in revenue recognition requirements in
AASB 15 may result in changes to the timing and
amount of revenue recorded in the financial
statements. Revenue from grants that are provided
under an enforceable agreement that have sufficiently
specific obligations, will now be deferred and
recognised as the performance obligations attached to
the grant are satisfied.
AASB 2016-3
Amendments to
Australian Accounting
Standards –
Clarifications to AASB
15
This Standard amends AASB 15 to clarify
the requirements on identifying
performance obligations, principal versus
agent considerations and the timing of
recognising revenue from granting a
licence. The amendments require:
• A promise to transfer to a customer a
good or service that is ‘distinct’ to be
recognised as a separate performance
obligation;
• For items purchased online, the entity is
a principal if it obtains control of the good
or service prior to transferring to the
customer; and
• For licences identified as being distinct
from other goods or services in a contract,
entities need to determine whether the
licence transfers to the customer over time
(right to use) or at a point in time (right to
access).
1 Jan 2018
The assessment has indicated that there will be no
significant impact for the public sector, other than the
impact identified in AASB 15.
AASB 2016-7
Amendments to
Australian Accounting
Standards – Deferral of
AASB 15 for Not-for-
Profit Entities
This Standard defers the mandatory
effective date of AASB 15 for not-for-profit
entities from 1 January 2018 to 1 January
2019.
1 Jan 2019
This amending standard will defer the application
period of AASB 15 for not-for-profit entities to the 2019-
20 reporting period.
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Royal Botanic Gardens Board Victoria 2018-19 Financial Report Page 35