q) Adoption of new and revised Accounting Standards
Council adopted the following standard as listed below which impacted upon the group’s financial statements.
AASB 1051 ‘Land under Roads’ (applicable from 1 July 2008). The council has elected not to retrospectively apply the land under road standard and has only recognised land under roads acquired after 1 July 2008. The land under roads have been valued at deemed cost.
AASB amendment
Standards affected
Outline of amendment
Application date of Standard
Application date for Council
AASB 2008-11
AASB 3 Business Combinations
Amends an earlier version of AASB 3 issued in July 2004. However, before the mandatory application of this Standard the Australian Accounting Standards Board will consider the suitability of this Standard for combinations in the not for profit sector. This may result in further amendments to this Standard or an additional scope exclusion. Consequently, it is not possible to assess the likely impact of this Standard on Council
1 Jul 09
1 Jul 09
AASB 2007-06
AASB 101 Presentation of Financial Statements
Amends an earlier versions of AASB 101 issued in July 2006. This Standard introduces the concept of a 'complete set of financial statements' and amends the title of some statements in the account. The other change of some relevance to Council relates to reporting owner changes in equity and comprehensive income. No significant impacts are expected to arise from this Standard
1 Jan 09
1 Jan 09
AASB 2007-08
AASB 123 Borrowing Costs
Amends an earlier version of AASB 123 issued in July 2004. This Standard requires borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised. Previously, entities had the option of expensing such costs. Subject to the existence of borrowings for the purpose of funding capital expenditure, this standard will require related borrowing costs to be capitalised rather than expensed. It is not expected that this will have a material impact on the reported financial performance or position of Council
1 Jan 09
1 Jan 09
AASB 2008-5
AASB 127 Consolidated and Separate Financial Statements
Amends an earlier version of AASB 127 issued in July 2004. This Standard makes various relatively minor change. This Standard is not expected to have any impact on Council.
These Standards made revisions, which are generally minor, to a range of other accounting Standards. It is not expected that these Standards will have any significant impact on Council.
1 Jan 09
1 Jan 09
r) Critical accounting judgements and key sources of estimation uncertainty
In application of the Group’s accounting policies, the council is required to make judgements, estimates ad assumptions about carrying values of certain assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period of the revision and future periods if the revision affects both current and future periods.
s) Functional Currency
The presentation currency of the City of Melbourne is the Australian dollar. The functional currency of each subsidiary throughout the Group and the consolidated financial statements is also the Australian dollar.
