111 111 AUSTRALIAN SPORTS COMMISSION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2017   AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities extends the requirements of AASB 124 Related Party Disclosures to not-for-profit public sector entities. AASB 2015-16 requires disclosure of material transactions with related parties and compensation paid to individuals defined as Key Management Personnel. The new disclosures have been included at Note 7 and 8 of the Financial Statements. Comparative disclosures are not required in the first year of application. Future Australian Accounting Standard Requirements The following new standards, amendments to standards or interpretations were issued by the Australian Accounting Standards Board prior to the signing of the Statement by the Chair of the Board, Chief Executive Officer and Chief Financial Officer and are expected to have an impact on the Commission for future reporting periods.  AASB 9 Financial instruments (applicable to reporting periods beginning on or after 1 January 2018) represents the first phase of a three-phase process to replace AASB 139 Financial Instruments: Recognition and Measurement. The standard reduces the four categories of financial assets to two: amortised cost and fair value. Given the make-up of the Commission’s financial assets (amortised cost items such as loans, receivables, term deposits), the new standard is not expected to impact its treatment or valuation of these assets.  AASB 15 Revenue from Contracts with Customers (applicable to reporting periods beginning on or after 1 January 2018) establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, with revenue recognised once performance obligations are satisfied. While this will apply for contracts that are exchange transactions, non- exchange transactions will be be subject to the requirements of AASB 1058 Income for Not-for-Profit Entities (discussed further below). The Commission’s treatment of exchange transactions and performance obligations is consistent with the requirements of the standard, and its introduction is not expected to materially impact revenue recognition.  AASB 16 Leases (applicable to reporting periods beginning on or after 1 January 2019) requires all lessees to account for their leases (except those at low value or less than 12 months) on the Statement of Financial Position. Accounting treatment for lessors will be unchanged. This will impact the treatment and disclosure of the operating leases the Commission has entered into as the lessee, primarily the lease obligation for the European Training Centre in Varese, Italy.  AASB 1058 Income for Not-for-Profit Entities (applicable to reporting periods beginning on or after 1 January 2019) works in conjuction with AASB 15 Revenue from Contracts with Customers and applies to transactions where: o the consideration given to acquire an asset is significantly less than the fair value of the asset received; and o is principally to enable the not-for-profit to further its objectives. AASB 1058 replaces the majority of income recognition requirements for public sector not-for-profit entities under AASB 1004 Contributions. AASB 1058 requires revenue from non-exchange transactions, such as grants and donations, to be recognised when any sufficiently specific and enforceable performance obligations have been satisfied, rather than on receipt as typically occurs under AASB 1004. AASB 1058 does not impact the recognition of revenue from Government. The ASC will further assess the full impact of the changes on other revenue sources prior to adoption.