Hi Phil, there’s a monthly publication “The NSW Local Government Industry Accounting Newsletter & Financial Management Best Practice Guide” from LG Solutions which explains the change. Within the March edition (page 14 – 22) it references: The amendments to AASB 9 are applicable for YE 18/19. There are 3 issues that Councils need to address in relation to the AASB 9 – Financial Instrument amendments. One of these is a revision as to when prepaid rates (and other statutory charges) are to be brought to account as income.
The change means that Prepaid rates up until now have been brought to account by Councils as income in the year that they were received (as Councils controlled the money). Now however the change to AASB 9 means that prepaid rates & all other prepaid statutory levies and charges will not be recognized until the levy is able to be actually “made”.This means a prepayment received in 2018/19 can’t be recognized in 2018/19. The income can’t be brought to account until the 2019/20 rates are formally made.
Hope this helps.
Mick
