Councils need to ensure the story told in the financial statements  is current, uses the best information council has available at the time and provides a complete story.  This will enable users of the financial statements to read the disclosures and have an understanding of the impact of COVID-19 on their  council.

The increased uncertainty in the current environment means that clear, informative and
transparent disclosure is essential for material items in council financial statements at 30 June 2020. In assessing materiality of disclosures, it is important to consider the information expectations of users of financial statements. If users could reasonably expect that COVID-19 has a significant impact on council, an explanation of the impact (or lack of impact) should be provided.

Financial statement disclosures should be:

Assumptions and judgements:

Model financial statements are unable to provide example disclosures for councils since the individual council impact will differ significantly councils should therefore describe the effect of COVID-19 on their specific operations, transactions and balances.

In preparing your council disclosures, think about: