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Note 7: Other disclosures

Notes to the financial statements for the period ended 30 June 2019.

Introduction

This note provides information on other disclosures that impact the Authority.

Structure

  • 7.1 Responsible persons
  • 7.2 Remuneration of executives
  • 7.3 Related parties
  • 7.4 Events occurring after the balance date
  • 7.5 Auditors remuneration
  • 7.6 Australian Accounting Standards issued that are not yet effective

7.1 Responsible persons

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968 and is reported within the Department of Parliamentary Services’ Financial Report.

The following lists the responsible persons for the Authority during the year:

Name Title Period of appointment from Period of appointment to
The Hon. Tim Pallas MP Minister for Industrial Relations 8 April 2019 30 June 2019
Julius Roe Director (Chair) 8 April 2019 30 June 2019
Claire Filson Director (Deputy Chair) 8 April 2019 30 June 2019
Emma King Director 8 April 2019 30 June 2019
Kate Marshall Director 8 April 2019 30 June 2019
Timothy Piper Director 8 April 2019 30 June 2019
Rachaell Saunders Director 8 April 2019 30 June 2019
Julie Warren Director 8 April 2019 30 June 2019
Linda White Director 8 April 2019 30 June 2019
Joseph Yeung Director and Chief Executive Officer 8 April 2019 30 June 2019

Remuneration

The number of Responsible Persons whose remuneration from the Authority was within the specified bands were as follows:

2019
Income band ($): No
0 – 9,999 7
10,000 – 19,999 1
70,000 – 79,999 1
Total Numbers 9

Remuneration received, or due and receivable, during 2018/19 by Responsible Persons including the Chief Executive Officer from the Authority in connection with the management of the Authority was $122,593.

7.2 Remuneration of executives

Being a new Authority that commenced full operations on 1 July 2019, there is no total remuneration payable to executives, other than the Chief Executive Officer listed under responsible persons in Note 7.1.

The Authority is a wholly owned and controlled entity of the State of Victoria.

Related parties of the Authority include:

  • all key management personnel and their close family members and personal business interests (controlled entities, joint ventures and entities they have significant influence over);
  • all cabinet ministers and their close family members
  • all departments and public sector entities that are controlled and consolidated into the whole of state consolidated financial statements.

All related party transactions have been entered into on an arm’s length basis.

Significant transactions with government-related entities

During the year, the Authority had the following government-related entity transactions (exclusive of GST):

2019
($'000)
Amounts recognised as revenue in the Comprehensive Operating Statement
Entity and nature of transaction
Department of Premier and Cabinet 301
Department of Health and Human Services 1,519
1,820
Amounts recognised as an expense in the Comprehensive Operating Statement
Entity and nature of transaction
Department of Jobs, Precincts and Regions 49
49

Key management personnel

Key management personnel (as defined in AASB 124 Related Party Disclosures) are those persons having authority and responsibility for planning, directing and controlling the activities of the Authority, directly or indirectly. Key management personnel of the Authority includes the Portfolio Minister, all Directors and the Chief Executive Officer as listed under responsible persons in Note 7.1.

Compensation of key management personnel(i)(ii)
Short-term employee benefits 113
Post-employment benefits 9
Other long-term benefits 1
Total 123

(i) The Authority did not employ any KMPs as a contractor through an external service provider during the reporting period.
(ii) The compensation detailed above excludes the salaries and benefits the Portfolio Minister receives.

Transactions with key management personnel and other related parties

Outside of normal citizen type transactions with the Authority, there were no related party transactions that involved key management personnel and their close family members.

No provision has been required, nor any expense recognised, for impairment of receivables from related parties.

7.4 Events occurring after the balance date

There have been no matters and/or circumstances that have arisen since the end of the reporting period which significantly affect or may significantly affect the operations of the Authority, the results of those operations, or the state of affairs of the Authority in future financial years.

7.5 Auditors Remuneration

Remuneration for auditing the financial statements of the Authority excluding GST has been set at $8,000 by the Victorian Auditor-General’s Office. No other benefits were received, or are receivable, by the Victorian Auditor-General’s Office.

7.6 Australian Accounting Standards issued that are not yet effective

As at 30 June 2019, the following applicable standards and interpretations had been issued but were not mandatory for the financial period ending 30 June 2019. The Authority has not and does not intend to adopt these standards early.

Standard/
Interpretation(1)
Summary Effective date Effective date
for the entity
Estimated impact
AASB 1059 Service Concession Arrangements:
Grantor
This standard prescribes the accounting treatment of public private partnership (PPP) arrangements involving a private sector operator providing public services related to a service concession asset on behalf of the State, for a specified period of time. For social infrastructure PPP arrangements, this would result in an earlier recognition of financial liabilities progressively over the construction period rather than at completion date. For economic infrastructure PPP arrangements that were previously not on balance sheet, the standard will require recognition of these arrangements on balance sheet. 1/1/20 1/7/19 Based on a preliminary assessment by the Authority, there will be no impact as the Authority has not entered into any PPP arrangements.
AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently not recognised) on the Balance Sheet, which has an impact on net debt. 1/1/19 1/7/19 Based on a preliminary assessment by the Authority, there will be an estimated $0.6 million increase to both assets and liabilities on the balance sheet (net impact
of $nil). This represents an operating lease that is
currently in place for the office building.
AASB 15 Revenue from Contracts with Customers 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. 1/1/19 1/7/19

Based on a preliminary assessment by the Authority, the changes in revenue recognition under AASB 15 will have no impact on the timing and amount of revenue recorded in the financial statements.

The full impact of the additional disclosures on service revenue and contract modification will also have no impact.

AASB 1058 Income of Not-for-Profit Entities AASB 1058 standard will replace AASB 1004 Contributions and establishes principles for transactions that are not within the scope of AASB 15, where the consideration to acquire an asset is significantly less than fair value to enable not-for-profit entities to further their objective. The restructure of administrative arrangement will remain under AASB 1004. 1/1/19 1/7/19

Based on a preliminary assessment by the Authority,
there will be no impact on the financial statements.

Grants funds received over the next 3 years to partially offset the operational costs of the Authority are not based on an enforceable agreement that have specific
obligations.

AASB 2016–8 Amendments to  Australian  Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities

This standard amends AASB 9 and AASB 15 to include requirements and implementation guidance to assist not-for-profit entities in applying the respective standards to particular transactions and events.

The amendments require non-contractual receivable arising from statutory requirements (i.e. taxes, rates and fines) to be initially measured and recognised in accordance with AASB 9 as if those receivables are financial instruments; and clarifies circumstances when a contract with a customer is within the scope of AASB 15.

1/1/19 1/7/19 Based on a preliminary assessment by the Authority,
there will be no significant impact.
AASB 2018–8 Amendments
to Australian Accounting
Standards – Right of use asset

This standard amends various AASB standards to provide an option for not-for-profit entities to not apply the fair value initial measurement requirements to a class or classes of right of use assets arising under leases with significantly below-market terms and conditions principally to enable the entity to further its objectives.

This standard also adds additional disclosure requirements to AASB
16 for not-for-profit entities that elect to apply this option.

1/1/19 1/7/19 Based on a preliminary assessment by the Authority, there will be no significant impact.
AASB 2018–7 Amendments to
Australian Accounting Standards –
Definition of Material

This standard amends AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The amendments refine the definition of material in AASB 10 Events after the Reporting Period, include some supporting requirements in AASB 101 in the definition to give it more prominence and clarify the explanation accompanying the definition of material.

The amendments also clarify the definition of material and its application by improving the wording and aligning the definition across AASB standards and other publications.

1/1/20 1/7/20

Based on a preliminary assessment by the Authority, there will be no significant impact.

Notes:
(1) For the current year, given the number of consequential amendments to AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers, the standards/interpretations have been grouped together to provide a more relevant view of the upcoming changes.

The following accounting pronouncements are also issued but not effective for the 2018–19 reporting period. At this stage, the preliminary assessment suggests they may have insignificant impacts on public sector reporting.

  • AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments
  • AASB 2017-6 Amendments to Australian Accounting Standards – Prepayment Features with Negative Compensation
  • AASB 2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and Joint Ventures
  • AASB 2018-1 Amendments to Australian Accounting Standards – Annual Improvements 2015 – 2017 Cycle
  • AASB 2018-2 Amendments to Australian Accounting Standards – Plan Amendments, Curtailment or Settlement
  • AASB 2018-3 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements

Reviewed 28 October 2019

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