The key impact of the amendments is to specify consistent related-party disclosure requirements for several bodies.
Commenting on the update, Kris Peach, chair of the AASB, said the black hole of public sector not-for-profit related-party disclosures has now been filled.
“Consistent related-party disclosure requirements will now apply to the Australian government, state governments, local councils and other not-for-profit public sector entities from 1 July 2016,” she said.
“Information about related parties is recognised by stakeholders as a critical element of accountability in the public sector, especially when an entity has had a material transaction with a related party such as the relevant Minister. The amendments to AASB 124 Related Party Disclosures will ensure that public sector entities with related-party transactions are subject to the same disclosure requirements as the private sector.”
The AASB released a statement saying that accountants in the public sector should focus on identifying and disclosing transactions with key management personnel occurring outside the person’s capacity as an ordinary taxpayer, or transactions involving a benefit not available to the general public.
The amendments to AASB 124 are made by AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities. AASB 124 and the amending standard are available on the AASB website.