Annual Report - Northern Health

Note 1: Summary of Significant Accounting PoliciesAASB 119 Employee Benefits In this revised Standard for defined benefitsuperannuation plans, there is a change to themethodology in the calculation of superannuationexpenses, in particular there is now a change in thesplit between superannuation interest expense(classified as transactions) and actuarial gains andlosses (classified as ‘Other economic flows – othermovements in equity’) reported on thecomprehensive operating statement.Notes To and Forming Part of the Financial StatementsNorthern Health Annual Report 2011/2012Beginning 1 Jan 2013 Not-for-profit entities are not permitted to apply thisStandard prior to the mandatory application date.While the total superannuation expense isunchanged, the revised methodology is expected tohave a negative impact on the net result fromtransactions of the general government sector andfor those few Victorian public sector entities thatreport superannuation defined benefit plans.AASB 127 Separate Financial Statements This revised Standard prescribes the accounting anddisclosure requirements for investments insubsidiaries, joint ventures and associates when anentity prepares separate financial statements.AASB 1053 Application of Tiers of Australian AccountingStandardsAASB 2009-11 Amendments to Australian Accounting Standardsarising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112,118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 andInterpretations 10 and 12]AASB 2010-2 Amendments to Australian Accounting Standardsarising from Reduced Disclosure RequirementsThis Standard establishes a differential financialreporting framework consisting of two tiers ofreporting requirements for preparing generalpurpose financial statements.This Standard gives effect to consequential changesarising from the issuance of AASB 9.This Standard makes amendments to manyAustralian Accounting Standards, includingInterpretations, to introduce reduced disclosurerequirements to the pronouncements for applicationby certain types of entities.Beginning 1 Jan 2013 Not-for-profit entities are not permitted to apply thisStandard prior to the mandatory application date.The AASB is assessing the applicability of principlesin AASB 127 in a not-for-profit context. As such,impact will be assessed after the AASB’sdeliberation.Beginning 1 July 2013 The Victorian Government is currently consideringthe impacts of Reduced Disclosure Requirements(RDRs) for certain public sector entities and has notdecided if RDRs will be implemented in the Victorianpublic sector.Beginning 1 Jan 2013 No significant impact is expected from theseconsequential amendments on entity reporting.Beginning 1 July 2013 The Victorian Government is currently consideringthe impacts of Reduced Disclosure Requirements(RDRs) for certain public sector entities and has notdecided if RDRs will be implemented in the Victorianpublic sector.AASB 2010-7 Amendments to Australian Accounting Standardsarising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101,102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137,139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]This Standard gives effect to consequential changesarising from the issuance of AASB 9.Beginning 1 Jan 2013 No significant impact is expected from theseconsequential amendments on entity reporting.AASB 2010-10 Further Amendments to Australian AccountingStandards – Removal of Fixed Dates for First-time AdoptersThe amendments ultimately affect AASB 1 First-timeAdoption of Australian Accounting Standards andprovide relief for first-time adopters of AustralianAccounting Standards from having to reconstructtransactions that occurred before their date oftransition to Australian Accounting Standards.Beginning 1 Jan 2013 No significant impact is expected on entity reporting.AASB 2011-2 Amendments to Australian Accounting Standardsarising from the Trans-Tasman Convergence Project – ReducedDisclosure Requirements[AASB 101 & AASB 1054]The objective of this amendment is to include someadditional disclosure from the Trans-TasmanConvergence Project and to reduce disclosurerequirements for entities preparing general purposefinancial statements under Australian AccountingStandards – Reduced Disclosure Requirements.Beginning 1 July 2013 The Victorian Government is currently consideringthe impacts of Reduced Disclosure Requirements(RDRs) and has not decided if RDRs will beimplemented in the Victorian public sector.Northern Health Financial Report Appendix to the 2011 - 2012 Annual Report Page 19 of 60