Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2011)
I, PENELOPE YING YEN WONG, Minister for Finance and Deregulation, make this instrument under the relevant provisions as set out below.
Dated 8 March 2012
PENELOPE YING YEN WONG
Minister for Finance and Deregulation
The relevant provisions are:
· subsections 49(2) and 63(1) of the Financial Management and Accountability Act 1997 (FMA Act) in relation to how financial statements must be prepared by FMA Act Agencies;
· subsection 48(1) and subclause 2(1) of Schedule 1 of the Commonwealth Authorities and Companies Act 1997 in relation to how financial statements must be prepared by Commonwealth authorities;
· subsection 47(1) of the High Court of Australia Act 1979 in relation to how financial statements must be prepared by the High Court of Australia;
· section 193H of the Aboriginal and Torres Strait Islander Act 2005 in relation to how the accounts and financial statements must be prepared for the Land Account;
· subsections 50B(2) and (4) of the Defence Service Homes Act 1918 in relation to how financial statements must be prepared by the Defence Service Homes Corporation; and
· subsections 43(1) and (3) of the Natural Heritage Trust of Australia Act 1997 in relation to how financial statements must be prepared for the Natural Heritage Trust of Australia Account.
1 Name of Orders
These Orders are the Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2011).
Note: These Orders relate to the preparation of financial statements.
2 Commencement
These Orders are taken to have commenced on 1 July 2011.
3 Financial statements
For reporting periods ending on or after 1 July 2011, Schedule 1 sets out:
(a) the requirements for the preparation of financial statements under:
(i) subsection 49(2) of the Financial Management and Accountability Act 1997 for Agencies prescribed in Schedule 1 to the Financial Management and Accountability Regulations 1997; and
(ii) subclause 2(1) of Schedule 1 of the Commonwealth Authorities and Companies Act 1997 (CAC Act) for Commonwealth Authorities established in accordance with the CAC Act;
(b) the form of financial statements required under subsection 47(1) of the High Court of Australia Act 1979 for the High Court of Australia;
(c) the form of accounts and financial statements required under section 193H of the Aboriginal and Torres Strait Islander Act 2005 for the Land Account;
(d) the form of financial statements required under subsections 50B(2) and (4) of the Defence Service Homes Act 1918 for the Defence Service Homes Corporation, but if a provision of these Orders is inconsistent with a requirement in AASB 1023 General Insurance Contracts, the provision in these Orders does not apply, and the requirement specified in AASB 1023 (and any related provision, such as a definition or interpretation provision) is taken to apply; and
(e) guidelines for the preparation of financial statements required under subsections 43(1) and (3) of the Natural Heritage Trust of Australia Act 1997 for the Natural Heritage Trust of Australia Account.
4 Accounts and records of Financial Management and Accountability Act Agencies
To comply with section 48 of the Financial Management and Accountability Act 1997, a Chief Executive of an Agency must ensure that the Agency’s accounts and records properly record and explain the Agency’s transactions and financial position, and (without limiting the generality of this obligation) must ensure that the accounts and records are kept in a way that:
(a) record the receipt and expenditure of public money on a daily basis;
(b) subject to any laws that prohibit disclosure, enables the Finance Minister full and free access to particular information;
(c) subject to any laws that prohibit disclosure, enables information to be provided to the Finance Chief Executive when required by the Finance Chief Executive:
(i) on Commonwealth financial affairs to be included in budget and related documentation; and
(ii) on the financial affairs of the agency for the preparation of aggregate reporting for the Commonwealth;
(d) enables the preparation of financial statements in accordance with section 49 of the Financial Management and Accountability Act 1997;
(e) enables the financial statements prepared under section 49 of the Financial Management and Accountability Act 1997 to be audited in accordance with that Act;
(f) ensures that public money is only expended for the purpose for which it is appropriated; and
(g) ensures the limit on any appropriation is not exceeded.
Schedule 1 Finance Minister’s Orders for Financial Statements for reporting periods ending on or after 1 July 2011.
SCHEDULE 1
finance minister’s orders for financial reporting
REQUIREMENTS FOR THE PREPARATION OF FINANCIAL STATEMENTS OF AUSTRALIAN GOVERNMENT ENTITIES FOR REPORTING PERIODS ENDING ON OR AFTER 1 JULY 2011
Table of Contents
Part A INTRODUCTION.. 4
1 Legislative Authority. 4
2 Content, Philosophy and Structure. 5
3 Further Information. 6
Part B DEFINITIONS AND ABBREVIATIONS. 6
4 Definitions. 6
5 Abbreviations. 12
Part C APPLICATION AND PRESENTATION.. 15
6 Commencement 15
7 Applicable Entities. 15
8 Authoritative Requirements. 16
9 Financial Reporting Structure and Form.. 17
11 Early Adoption of Accounting Pronouncements. 17
12 Materiality and Information Disclosure. 18
13 Rounding Off 18
14 Certificates. 19
15 Departmental and Administered: Classification and Reporting. 20
16 Exemptions from this Schedule. 21
17 Approved Exemptions. 21
Part D STATEMENT OF COMPREHENSIVE INCOME (Excluding Appropriations) 23
18 Statement of Comprehensive Income. 23
19 Income (Excluding Appropriations) 24
20 Expenses – General Information. 24
21 Borrowing Costs. 24
22 Operating Leases. 24
23 Director/Senior Executive Remuneration. 24
24 Remuneration of Auditors. 31
25 Operating Expenditure for Heritage and Cultural Assets. 32
Part E BALANCE SHEET.. 32
30 Financial Assets – General Information. 32
31 Receivables for Statutory Charges. 32
32 Investment of Surplus Money by Authorities. 32
33 Valuation of Non-Financial Assets. 32
34 Impairment of Non-Financial Assets. 33
35 Analysis of Non-Financial Assets. 34
37 Heritage and Cultural Assets. 34
38 Assets Held in Trust 35
39 Joint Ventures. 36
40 Liabilities – General Information. 36
41 Liabilities Relating to Dividends. 36
43 Employee Benefits. 36
44 Measurement and Disclosure of Post Employment Plans. 37
45 Financial Instruments. 38
Part F OTHER FACE STATEMENTS AND SCHEDULES. 40
60 Cash Flow Statement 40
80 Contingencies. 40
81 Commitments. 41
Part G ADMINISTERED REPORTING.. 42
85 Administered Reporting – General Information. 42
87 Administered Investments. 42
88 Administered Investments Held for Sale. 43
Part H RESTRUCTURES. 44
92 Restructures of Administrative Arrangements. 44
Part I APPROPRIATIONS. 45
100 Appropriations – General Requirements. 45
100 Departmental Appropriations. 46
101 Administered Appropriations. 48
104 Disclosure of Appropriations. 49
Part J OTHER DISCLOSURES. 54
120 Special Accounts and FMA Act Section 39 Investments. 54
121 Reporting of Outcomes. 56
122 Compensation and Debt Relief in Special Circumstances. 58
123 Competitive Neutrality and Cost Recovery. 59
Part K PRIMA FORMS. 60
150 PRIMA Forms. 60
Part A INTRODUCTION
1 Legislative Authority
1.1 The Finance Minister makes the Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2011) under the relevant provisions as set out below:
(a) subsection 63(1) of the Financial Management and Accountability Act 1997 in relation to how financial statements must be prepared by agencies;
(b) subsection 48(1) of the Commonwealth Authorities and Companies Act 1997 in relation to how financial statements must be prepared by authorities;
(c) subsection 47(1) of the High Court of Australia Act 1979 in relation to how financial statements must be prepared by the High Court of Australia;
(d) subsection 193H(1) of the Aboriginal and Torres Strait Islander Act 2005 in relation to how the accounts and financial statements must be prepared for the Land Account;
(e) subsection 50B(4) of the Defence Service Homes Act 1918 in relation to how financial statements must be prepared by the Defence Service Homes Corporation; and
(f) subsection 43(3) of the Natural Heritage Trust of Australia Act 1997 in relation to how financial statements must be prepared for the Natural Heritage Trust of Australia Account.
1.2 These Orders apply to:
(a) all reporting entities covered by section 49 of the FMA Act;
(b) all reporting entities covered by clause 2 of Schedule 1 to the CAC Act; and
(c) certain Commonwealth bodies that are not subject to either Act, for whom it is appropriate to report on a consistent basis to those entities covered by (a) and (b).
1.3 These Orders form part of the financial reporting framework for Australian Government entities. Elements and requirements of the framework are set out in Division 8.
1.4 Where a choice of accounting policy is required to be made that is not covered by these Orders, and an accounting treatment that is consistent with GFS is available, that treatment must be applied.
2 Content, Philosophy and Structure
Content
2.1 The content of this schedule is built around:
(a) mandatory compliance with AAS;
(b) general enabling information (e.g., definitions, rounding and materiality policies);
(c) additional disclosures not covered by AAS (e.g., appropriation disclosures); and
(d) mandating options with choice for where AAS allows choice (e.g., mandatory use of the valuation method for property, plant and equipment and administered disclosures).
Philosophy
2.2 The philosophy adopted in preparation of this schedule is that this schedule:
(a) will not duplicate or re-state accounting standards;
(b) is not a “training tool”;
(c) should be logically arranged; and
(d) should be written as close to “plain English” as is feasible for a technical document.
Structural conventions
2.3 The following conventions are used within this schedule:
(a) major components are parts, denoted by an upper case letter. For example, Part A;
(b) parts are broken into divisions, denoted by a whole number. For example, Division 1; and
(c) divisions are further broken into sections. For example, section 1.1.
3 Further Information
Part B DEFINITIONS AND ABBREVIATIONS
4 Definitions
Administrative Arrangements Order (AAO)
The AAO, issued from time to time by the Governor-General, establishes the matters to be dealt with by each Department of State, and the Acts of Parliament to be administered by each Minister.
Administered Investments
Administered investment is defined for the purpose of this schedule as an interest by the Australian Government in a subsidiary, associate or jointly controlled operation or entity that is disclosed in the financial statements of an agency on behalf of the Australian Government.
Administered
Those items that an agency does not control but over which it has management responsibility on behalf of the Government and which are subject to prescriptive rules or conditions established by legislation, or Australian Government policy, in order to achieve Australian Government outcomes. Refer to Division 15 for further information.
Agency
As defined in FMA Act section 5.
Appropriation
For the purposes of this schedule, an authority under any Act or law to draw money from the CRF, whether or not the law concerned used the word appropriation or appropriated.
Appropriations for payment to CAC Act bodies
Same meaning as ‘CAC Act body payment item’ in Appropriation Acts 1-6.
Australian Accounting Standards (AAS)
AAS released by the AASB.
Australian Government
All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.
Authority
A Commonwealth authority as defined in CAC Act section 7. Also referred to in this schedule as a CAC Act entity, authority or body.
Business Operation/s
A function or functions within an agency that have been determined to be a business operation pursuant to FMA Regs section 5A.
Schedule 1 of the Determination of Business Operations under Financial Management and Accountability Regulations 1997 lists activities that must be treated as business operations.
Collection Institutions
Comprise the following entities:
(a) Australian Institute of Aboriginal and Torres Strait Islander Studies;
(b) Australian National Maritime Museum;
(c) Australian War Memorial;
(d) National Archives of Australia;
(e) National Film and Sound Archive;
(f) National Gallery of Australia;
(g) National Library of Australia;
(h) National Museum of Australia; and
(i) Old Parliament House.
Commitments
Commitments:
(a) are intentions to create liabilities or assets for the receiving entity, as evidenced by undertakings or agreements to make/obtain future payments to/from other entities; and
(b) are executory contracts that are not recognised under AASB 137 Provisions, Contingent Liabilities and Contingent Assets (i.e., not onerous); but
(c) do not include future year appropriations.
Commonwealth
The legal entity of the Commonwealth of Australia, created by the Australian Constitution.
Concessional Loan
A loan provided on more favourable terms than the borrower could obtain in the market place. The concession provided may be in the form of lower than market interest rates, longer loan maturity or grace periods before the payment of the principal or interest.
Consolidated Financial Statements (CFS)
The CFS for the Australian Government are the annual, end-of-year financial statements prepared under FMA Act section 55 and in accordance with AAS. The CFS present the consolidated results for the Australian Government as well as disaggregated information on the various sectors of government (GGS, PNFCs and PFCs).
Cost Recovery
As defined in Finance Circular 2005/09 and the Australian Government Cost Recovery Guidelines.
Departmental
Those items that the entity controls that are applied to the production of the entity’s own purposes. Refer to Division 15 for further information.
Departmental supplementation
Supplementation for work agencies were directed by government to undertake in a financial year but after the last date for inclusion in the last set of appropriation Bills prepared for the financial year. Agencies are expected to meet the cost of these activities from their existing appropriations, which will then be replenished by a departmental appropriation in the following financial year.
Employee
An individual who renders personal services to an entity and is either regarded as an employee for legal or tax purposes, works for an entity under the direction of the entity in the same way as an individual who is regarded as an employee for legal or tax purposes, or renders services in a similar way to individuals regarded as employees for legal or tax purposes.
(derived from AASB 2 Appendix A)
Entity
Refers to:
(a) an agency;
(b) an authority;
(c) an economic entity - comprising the agency or authority and its subsidiaries; and
(d) each activity or activities of an agency which is/are determined to be a business operation.
For the purpose of this schedule, Commonwealth Companies incorporated under the Corporations Act 2001 do not fall under this definition except to the extent that they form part of an economic entity referred to above.
Finance Chief Executive
Secretary of the Department of Finance and Deregulation.
Finance Minister
Minister for Finance and Deregulation.
Financial Report/Statements
Comprises:
(a) the primary financial statements, schedules and notes required by this schedule; and
(b) other certificates, reports and notes which are:
i. prepared in relation to the agency or authority (where the agency or authority is a parent entity, the economic entity comprising the agency or authority and its subsidiaries); and
ii. attached to or intended to be read with the statements and notes in (a);
but not including the:
i. auditor’s report;
ii. annual report; or
iii. additional supplementary information that is not audited.
Financial report as used in this schedule must be taken to have the same meaning as the term financial statements applied in the FMA Act and CAC Act.
For-Profit Entities
Any entity that does not meet the definition of a not-for-profit entity.
General Government Sector
Institutional sector comprising all government units and non-profit institutions controlled and mainly financed by government.
(Australian System of Government Finance Statistics)
Government Business Enterprises
A Commonwealth authority or Commonwealth company that is prescribed as a GBE under the Commonwealth Authorities and Companies Regulations 1997.
Grants
Contributions of Government resources to or from a unit of Government for specific or general purposes where there is no expectation that the amount will be repaid in equal value, either by money or goods/ services. Grants can take the form of money, property or technical assistance and subsidies. (See also AASB 120 para. 3 and the Australian System of Government Finance Statistics)
Heritage and Cultural Assets
Assets that are:
(a) used for the community’s benefit;
(b) represent, in part, Australia’s cultural and historic background; and
(c) are primarily used for purposes that relate to their cultural, environmental or historical significance.
Heritage and cultural assets do not include structures constructed to assist with the display, transport or storage of the item, unless the structure has such heritage value in its own right or is an integral part of the asset.
Indefinite Useful Life
Where there is no foreseeable end to the period over which future economic benefits are expected to be generated by the asset for the entity. This does not mean the asset has an infinite useful life, but that the entity has the ability and intention to maintain the asset indefinitely in close approximation to its present state.
Outcomes
The results, impacts or consequences of actions by the Australian Government on the Australian community that the Government wishes to achieve. For reporting purposes outcomes equate to major activities in AASB 1052.
Outsider
Any person other than the Commonwealth, an official or a Minister.
(FMA Act section 12 (3))
Own-Source Income
Consists of all income except:
(a) annual appropriations;
(b) special appropriations; and
(c) amounts appropriated to the relevant portfolio agency for payment to the CAC Act authority (CAC Act body payment item).
It includes FMA Act section 31 relevant agency receipts and is adjusted for any repayments made under FMA Act section 28.
Performance Guarantee
A guarantee of another entity’s performance of services to a third party, which may or may not create a financial obligation for the guarantor in the event of non-performance. A performance guarantee is not a financial guarantee.
Personal Benefit Payments
Current transfers for the benefit of individuals or households (for example, child care and family tax benefits), directly or indirectly, that do not require any economic benefit to flow back to Government.
Primary Financial Statements
The statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement.
Public Financial Corporations
As defined in the Australian System of Government Finance Statistics. These entities are listed in the flipchart of FMA Act Agencies / CAC Act Bodies or List of Australian Government Bodies and Governance Relationships as at 1 October 2009 available from Finance’s website.
Public Non-Financial Corporations
As defined in the Australian System of Government Finance Statistics. These entities are listed in the flipchart of FMA Act Agencies / CAC Act Bodies or List of Australian Government Bodies and Governance Relationships as at 1 October 2009 available from Finance’s website.
Public Money
As defined in FMA Act section 5.
Recoverable GST exclusive
Refer to Division 104 and Division 120.
Resources Received Free of Charge
Goods or services received for no or nominal consideration that would otherwise have been purchased and can be reliably measured.
Responsible entity
The entity named in the relevant legislation or if not named, the portfolio department, unless determined otherwise by the relevant Minister.
Special Public Money
As defined in FMA Act section 16.
Statutory charges
Non-reciprocal charges imposed by Government.
Subsidies
As defined in the Australian System of Government Finance Statistics.
Transfer Payments
Payments that an entity does not control, but is responsible for transferring to eligible recipients (under legislation or some other authority). Transfer payments may include:
(a) personal benefit payments such as:
(i) unemployment benefits;
(ii) family allowances; and
(iii) age and invalid pensions;
(b) disaster relief; and
(c) grants and subsidies made to other entities.
5 Abbreviations
AAO
Administrative Arrangements Order
AAS
Australian Accounting Standards (issued by the AASB or its predecessor bodies)
AASB
The Australian Accounting Standards Board established under the Australian Securities and Investments Commission Act 2001, or the AAS issued by the Board, as the case requires
AFM
Advance to the Finance Minister
ANAO
Australian National Audit Office
APS
Australian Public Sector (or Service)
ATO
Australian Taxation Office
Aus
Paragraphs in the AAS or AASB Interpretations that do not appear in the text of the IASB Framework or Standards are identified with the prefix Aus, followed by the number of the relevant AASB paragraph
CAC Act
The Commonwealth Authorities and Companies Act 1997
CFO
Chief Financial Officer or Chief Finance Officer
CN
Competitive Neutrality
CRF
Consolidated Revenue Fund
CSS
Commonwealth Superannuation Scheme
Finance
Department of Finance and Deregulation
FMA Act
The Financial Management and Accountability Act 1997
FMA Regs
The Financial Management and Accountability Regulations 1997
FMOs
5.1 The Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2011) made by the Finance Minister under the relevant provisions as set out below:
(a) subsection 63(1) of the Financial Management and Accountability Act 1997 in relation to how financial statements must be prepared by agencies;
(b) subsection 48(1) of the Commonwealth Authorities and Companies Act 1997 in relation to how financial statements must be prepared by authorities;
(c) subsection 47(1) of the High Court of Australia Act 1979 in relation to how financial statements must be prepared by the High Court of Australia;
(d) subsection 193H(1) of the Aboriginal and Torres Strait Islander Act 2005 in relation to how the accounts and financial statements must be prepared for the Land Account;
(e) subsection 50B(4) of the Defence Service Homes Act 1918 in relation to how financial statements must be prepared by the Defence Service Homes Corporation; and
(f) subsection 43(3) of the Natural Heritage Trust of Australia Act 1997 in relation to how financial statements must be prepared for the Natural Heritage Trust of Australia Account.
FTE
Full-time Equivalent
FVTPL
Fair Value Through Profit and Loss
GBE
Government Business Enterprise
GFS
Government Finance Statistics as set out in the Australian System of Government Finance Statistics.
GGS
General Government Sector
LSL
Long Service Leave
MSBS
Military Superannuation and Benefits Scheme
OPA
Official Public Account
PFC
Public Financial Corporation
PNFC
Public Non-Financial Corporation
PRIMA
Primary Reporting and Information Management Aid
PRIMA Forms
PRIMA Forms of Financial Statements
PS Act
Public Service Act 1999
PSS
Public Sector Superannuation Scheme
SAC
Statements of Accounting Concepts issued by the AASB (or predecessor)
TER
Tax Equivalent Regime
Part C APPLICATION AND PRESENTATION
6 Commencement
6.1 This schedule applies to:
(a) financial statements prepared for reporting periods ending on or after 1 July 2011;
(b) financial statements for entities that cease to exist on or after 1 July 2011; and
(c) entities that have reporting periods ending on 31 December 2011.
6.2 These requirements replace previously published FMOs.
7 Applicable Entities
7.1 Financial statements must be prepared for the following:
(a) each entity that it is not the parent entity in an economic entity;
(b) each economic entity, comprising the agency or authority and its subsidiaries; and
(c) each business operation.
7.2 Where an entity is the parent entity in an economic entity, it must either:
(a) prepare parent entity financial statements as well as consolidated financial statements; or
(b) disclose parent entity supplementary information as prescribed in Reg 2M.3.01 of the Corporations Regulations 2001 and section 23.26(b) in a note to the consolidated financial statements of the economic entity.
8 Authoritative Requirements
8.1 Where there is a conflict between this schedule and any other authoritative requirements in section 8.2, entities must apply the provisions in this schedule.
8.2 Subject to section 8.1, the financial statements of each entity must:
(a) comply with:
(i) all applicable requirements of this schedule and other policies issued by Finance relevant to the preparation of financial statements; and
(ii) applicable AAS and interpretations issued by the AASB that apply for the reporting period; and
(b) have regard to:
(i) guidance to this schedule;
(ii) the Statements of Accounting Concepts 1 and 2 (SACs);
(iii) the AASB Framework for the Preparation and Presentation of Financial Statements; and
(iv) Estimates Memoranda, FinanceBriefs, Finance Circulars, Financial Management Guidance series, Accounting Guidance Notes and other guidance issued by Finance.
9 Financial Reporting Structure and Form
9.1 This schedule applies to both departmental and administered reporting unless otherwise specified.
9.2 The financial statements of each entity must:
(a) include the primary financial statements, schedules and notes as prescribed in Part K;
(b) be presented in the English language and Australian dollars;
(c) disclose whether the entity operates on a for-profit or a not-for-profit basis;
(d) disclose comparative information, unless not required by this schedule or AAS;
(e) include sub-total rows and/or columns (as prescribed in Part K) as required to reconcile to line items on the face of the primary statements; and
(f) be presented in the following order:
(i) statement required by Division 14;
(ii) departmental primary financial statements (statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement) and schedules;
(iii) administered schedules; and
(iv) notes to the financial statements.
11 Early Adoption of Accounting Pronouncements
11.1 If an entity wishes to adopt an AAS or AASB Interpretation earlier than its effective date of application, other than as permitted or required by this schedule, it must seek approval from the Finance Chief Executive.
11.2 The Finance Chief Executive may instruct one or more entities to early adopt an AAS or AASB Interpretation.
12 Materiality and Information Disclosure
12.1 The requirements of this schedule apply where information resulting from their application is material, or as specifically stated within the schedule.
12.2 Assessments of materiality must be performed at the level of the entity preparing the financial statements, not GGS level.
12.3 Each change in accounting policy must be disclosed separately.
12.4 Entities must maintain proper accounting records to support all disclosures required by this schedule and the supporting policy.
13 Rounding Off
General rounding rules
13.1 Subject to the exceptions listed at sections 13.3 to 13.5, amounts in the financial statements may be rounded off as follows:
(a) to the nearest dollar;
(b) where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $10 million, to the nearest $1,000, unless that amount is less than $500, in which case the amount should be rounded to zero; or
(c) where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $1 billion, to the nearest $1 million, unless the amount is less than $500,000, in which case the amount should be rounded to zero.
13.2 Subject to the exceptions listed in sections 13.3 to 13.5, the rounding thresholds in section 13.1 must be applied:
(a) separately for departmental and administered reporting; and
(b) consistently within departmental and administered reporting regardless of whether rounding is different between departmental and administered disclosures.
Exceptions
13.3 For appropriations (Part I), special accounts (Division 120) and outcomes (Division 121) disclosures, the following rules apply:
(a) they must not be rounded to the nearest $1 million; and
(b) rounding must be consistent between departmental and administered reporting (where the application of section 13.1 results in different levels of rounding to departmental and administered reporting, the lower level of rounding must be applied).
13.4 Disclosures required by Division 23 must be rounded to the nearest dollar.
13.5 Table F disclosures, as required under Division 104, must be disclosed to the cent.
14 Certificates
14.1 The signed audit report on the financial statements must be attached to the financial statements.
14.2 Each authority or, where relevant, each economic entity comprising an authority and its subsidiaries’ as applicable, must present a statement signed by: the chair of the board (or a director) in accordance with a resolution of the board; the chief executive officer; and the CFO, stating:
(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this schedule;
(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;
(c) for entities other than the Reserve Bank of Australia, whether, in their opinion, there are, when the statement is made, reasonable grounds to believe that the entity will be able to pay its debts as and when they fall due;
(d) when additional information is included in the notes to give a true and fair view and/or to satisfy section 16.3 where applicable, then the reasons for forming this view and the location of the additional notes in the financial statements;
(e) that the statement has been made in accordance with a resolution of the directors; and
(f) the date on which the statement is made.
14.3 Each other entity identified in section 7.1 required to prepare financial statements must include a statement signed by the chief executive officer and CFO stating:
(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this schedule;
(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;
(c) when additional information is included in the notes to give a true and fair view and/or to satisfy section 16.3 as applicable, then the reasons for forming this view and the location of the additional notes in the financial statements; and
(d) the date on which the statement is made.
15 Departmental and Administered: Classification and Reporting
15.1 Subject to section 15.4, entities must distinguish between ‘departmental’ and ‘administered’ in the financial statements for all disclosures outlined in this schedule.
15.2 The financial statements of entities must present items as ‘departmental’ and ‘administered’ in accordance with Cabinet decisions on their classification.
15.3 Changes must not be made to the classification of existing items without the approval of Cabinet or the Finance Minister.
15.4 Reclassification of an existing item is not a change in accounting policy.
15.5 Special public money (including money held in trust for other persons) is neither ‘departmental’ nor ‘administered’ (refer to Division 120).
15.6 Specific reporting requirements apply in relation to assets held in trust (refer to Division 38).
15.7 Unless directed by legislation, Cabinet or the Finance Minister (Division 15), authorities must not recognise monies collected on behalf of the Commonwealth as an administered revenue or an asset of the authority. The relevant agency will make the appropriate disclosures.
16 Exemptions from this Schedule
16.1 The Finance Minister may grant a written exemption to the Chief Executive Officer of an agency, or directors of an authority, from any specified requirements of this schedule.
16.2 An exemption may be granted subject to conditions, including a requirement for alternative forms of disclosure.
16.3 The Chief Executive Officer or directors must disclose the particulars of any exemptions applied by the entity in the financial statements.
16.4 An exemption must not be applied if it results in non-compliance with AAS.
16.5 Where an entity elects to apply any exemptions granted by the Finance Minister, information that would otherwise be obtained must be available for consolidation into the CFS.
17 Approved Exemptions
17.1 PFCs and GBEs may apply any of the three recognition options for recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. All other entities must apply the direct to equity option of recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119.
17.2 The Australian Office of Financial Management (AOFM) is excluded from the requirement to present the administered schedules and associated administered notes in the format required by Division 85 and Part K. However, AOFM must instead adhere to the statement of comprehensive income reporting requirements of AASB 101.
17.3 The Reserve Bank of Australia is not required to prepare financial statements in the format prescribed by Part K. The Reserve Bank of Australia may determine the format of the financial statements to the extent that it applies generally accepted industry reporting principles and applicable AAS.
17.4 For-profit entities or an entity that is a university may elect not to apply the requirements in sections 33.2, 33.3, 33.4 and 33.5 relating to valuation of non-financial assets.
17.5 Intelligence and security agencies, defence agencies and prescribed law enforcement agencies are exempt from making disclosures under Division 38. Section 38.54P provides guidance on related voluntary disclosures.
17.6 The term Future Fund refers collectively to the Board of Guardians and the Future Fund Management Agency as well as the Future Fund itself including the investments and special account constituted under the Future Fund Act 2006.
17.7 The Future Fund is exempt from presenting the financial statements required by this schedule and Part K, on the condition that:
(a) the Future Fund presents its financial statements as a single entity;
(b) the financial statements are presented in a format consistent with that used in the funds management industry and applying applicable AAS;
(c) the financial statements for the Future Fund contain sufficient information to ensure appropriate accountability and transparency, consistent with that applying to general purpose financial statements;
(d) the Future Fund present such additional disclosures as required in Division 23, Division 81, Part H and Part J, to the extent that they are relevant to the Future Fund’s operations; and
(e) to the extent that there is a conflict between paragraph (b) and paragraphs (c) and (d), paragraphs (c) and (d) will have precedence.
17.8 In the presentation of the financial statements required under the Aboriginal and Torres Strait Islander Act 2005, the Aboriginal and Torres Strait Islander Land Account (Land Account) is exempt from the following items in this schedule:
(a) Part G and the administered disclosures in Part K;
(b) Part I to the extent that the Land Account has no appropriation transactions and balances other than through its special account;
(c) Division 121 to the extent that the Land Account does not have any defined outcomes; and
(d) Division 122 to the extent that the Land Account has not made any payments specified in that Division.
17.9 The Land Account is required to present its administered activities in departmental format as illustrated in Part K. The accounting policy note must clearly state that all activities are administered.
17.10 Other entities that include the activities of the Land Account must continue to comply with this schedule in the preparation of their financial statements.
17.11 In the presentation of the financial statements required under the Aboriginal Land Rights (Northern Territory) Act 1976, the Aboriginals Benefit Account is exempted from the items listed in section 17.8 under the same conditions imposed on the Land Account in sections 17.9 and 17.10.
17.12 The Australian Reinsurance Pool Corporation (ARPC) is not required to prepare financial statements in the format prescribed by Part K. ARPC may determine the format of the financial statements to the extent that it applies generally accepted industry reporting principles and applicable AAS.
17.13 The Australian National University (ANU) is exempt from the requirements of Division 18 and the format of the statement of comprehensive income in the Part K, on the condition that the ANU presents that statement in accordance with the Financial Statement Guidelines for Australian Higher Education Providers required by the Department of Education, Employment and Workplace Relations to the extent those Guidelines are not inconsistent with AAS.
17.14 The Department of Defence (Defence) is exempt from reporting Star Ranked reservists, who are not employed on a continuous full time service basis and whose remuneration is less than $150,000 and reportable remuneration is less than $150,000, in the disclosures required by Division 23, on the condition that Defence disclose this fact by way of footnote.
Part D STATEMENT OF COMPREHENSIVE INCOME (Excluding Appropriations)
18 Statement of Comprehensive Income
18.1 Entities must present all items of income and expense recognised in a period in a single statement of comprehensive income.
18.2 Not-for-profit entities must adopt the Net Cost of Services (NCOS) format for the statement of comprehensive income as set out in Part K.
19 Income (Excluding Appropriations)
Grants
19.1 For‑profit entities must:
(a) recognise non‑monetary government grants at fair value and not at nominal amount;
(b) present government grants related to assets as deferred income and not as a deduction to the carrying amount of the asset; and
(c) present government grants related to income as income in the statement of comprehensive income and not deduct them from the related expense.
19.2 To the extent that receipts under the Paid Parental Leave Scheme are regarded as income, section 19.1(c) does not apply to these receipts.
20 Expenses – General Information
21 Borrowing Costs
21.1 Not‑for‑profit entities must expense borrowing costs as incurred.
22 Operating Leases
23 Director/Senior Executive Remuneration
Definitions
23.1 Definitions for the purpose of this division are as follows:
Bonus paid
Used for the ‘bonus paid’ column in Table B and Table C. Bonus paid:
(a) is equal to the actual bonus paid to individuals during the reporting period; and
(b) is a component of gross payments reported on the payment summary.
Contributed superannuation
Used for the ‘contributed superannuation’ column in Table B and Table C, and is equal to the actual superannuation contributions as per the individual’s payslips during the reporting period, including employer contributions and any salary sacrificed superannuation. If actual superannuation contributions are not shown on payslips, they must still be disclosed in Tables B and C.
Director
Director of a Commonwealth authority or GBE.
Executive remuneration
As defined in Accounting Guidance Note No. 2007/2 (Revised) – Identification of Executive Remuneration.
Fee-for-service arrangement
Where an executive or director employed by one entity is subcontracted out under a formal contract or arrangement (e.g., a memorandum of understanding) to a second entity and the charges for the services under the contract or arrangement are calculated using a fixed rate (e.g., hourly/daily/monthly).
Reportable allowances
Used for the ‘allowances’ column in Table B and Table C, and is equal to the ‘total allowances’ figure as reported in an individual’s payment summary.
Reportable allowances excludes any allowances already reported in the gross payments line in the payment summary.
Reportable remuneration
Used for the ‘total’ column in Table B and Table C, and comprises the sum of:
(a) reportable salary;
(b) contributed superannuation;
(c) reportable allowances; and
(d) bonus paid;
as defined elsewhere in this section. Reportable remuneration does not include amounts from the ‘lump sum’ item on the individual’s payment summary.
Reportable salary
Used for the ‘salary’ column in Table B and Table C, and comprises the sum of:
(a) gross payments;
(b) reportable fringe benefits (net amount); and
(c) exempt foreign employment income;
as reported in an individual’s payment summary, less any bonuses paid in the financial reporting period.
Secondment
An arrangement entered into where the employee remains an employee of the home APS entity or an outside employer but is lent for a period, by:
(a) an APS entity to another APS entity;
(b) an outside employer to an APS entity; or
(c) an APS entity to an outside employer.
Senior executive
(a) Chief executive officers and equivalents, Senior Executive Service (SES) and equivalent officers classified in Groups 9-11 of the Public Service Classification Rules 2000 and star ranked military officers.
(b) A person falling within the definition of a senior manager of an authority under CAC Act section 5.
(c) Employees of an entity:
(i) who perform functions controlling operational activities, which directly impact the economic function and viability of the entity; and
(ii) whose employment conditions are equivalent to SES employment conditions of service.
(d) Senior executive excludes Australian Prudential Regulation Authority (APRA) members. APRA members must be disclosed as directors in accordance with section 23.24.
Star-ranked military officer
(a) for Navy personnel: Commodore and above;
(b) for Army personnel: Brigadier and above;
(c) for Air Force personnel: Air Commodore and above; and
(d) for Army, Navy or Air Force: commissioned personnel of equivalent rank or status to personnel noted in (a) to (c) above, e.g., chaplains.
General requirements
Individuals with dual roles
23.2 For the purpose of this division, where an individual is both a senior executive and director of the same entity, they must be reported as a senior executive only.
Fee-for-service contracts
23.3 Entities are not required to prepare disclosures under this division for senior executives or directors subject to a fee-for-service contract arrangement where the entity is not the direct employer.
Secondment arrangements
23.4 For the purpose of this Division, individuals on secondment must be disclosed by the receiving entity only.
Table A: Senior executive remuneration expenses for the reporting period
Scope
23.5 Table A must be prepared for senior executives of an entity.
23.6 Table A excludes individuals that meet both of the following criteria:
(a) on an acting arrangement and/or have not been employed by the entity for the full financial reporting period; and
(b) have total senior executive remuneration for the financial reporting period less than $150,000.
Basis of preparation
23.7 Table A must be prepared using actual senior executive remuneration expenses (on an accrual basis).
Disclosures
23.8 Entities must disclose the following in Table A for the financial reporting period:
(a) expenses for senior executives by major categories of:
(i) short-term employee benefits;
(ii) post-employment benefits;
(iii) other long-term benefits; and
(iv) termination benefits;
(b) the total expense for each item listed in subsection (a); and
(c) total senior executive remuneration expenses.
Table B: Average annual reportable remuneration paid to substantive senior executives during the reporting period
Scope
23.9 Table B must be prepared for substantive senior executives employed by an entity during the reporting period.
Basis of preparation
23.10 The ‘reportable salary’ column is prepared on a cash basis using reportable salary as defined in section 23.1.
23.11 The ‘contributed superannuation’ column is prepared on a cash basis using contributed superannuation as defined in section 23.1.
23.12 The ‘reportable allowances’ column is prepared on a cash basis using reportable allowances as defined in section 23.1.
23.13 The ‘bonus paid’ column is prepared on a cash basis using bonus paid as defined in section 23.1.
Disclosures
23.14 Entities must disclose the following information in respect of substantive senior executives for reportable remuneration of $0 to less than $150,000 and each successive $30,000 band:
(a) the number of individuals;
(b) the average of reportable salary for individuals in that band for the reporting period;
(c) average contributed superannuation for individuals in that band for the reporting period;
(d) average reportable allowances paid to individuals in that band for the reporting period;
(e) the average bonus paid to individuals in that band for the reporting period; and
(f) the total of items (b) through (e)
Table C: Other highly paid staff
Scope
23.15 For the purpose of section 23.20, entities must disclose employees:
(a) where the sum of their reportable remuneration was $150,000 or more for the financial reporting period;
(b) who were not deployed outside Australia during the reporting period; and
(c) who were not required to be disclosed in Table B or director disclosures.
Basis of preparation
23.16 The ‘reportable salary’ column is prepared on a cash basis using reportable salary as defined in section 23.1.
23.17 The ‘contributed superannuation’ column is prepared on a cash basis using contributed superannuation as defined in section 23.1.
23.18 The ‘reportable allowances’ column is prepared on a cash basis using reportable allowances as defined in section 23.1.
23.19 The ‘bonus paid’ column is prepared on a cash basis using bonus paid as defined in section 23.1.
Disclosures
23.20 Entities must disclose the following information in respect of other highly paid staff for reportable remuneration of $150,000 to less than $179,999 and each successive $30,000 band:
(a) the number of individuals;
(b) the average of reportable salary for individuals in that band for the reporting period;
(c) average contributed superannuation for individuals in that band for the reporting period;
(d) average reportable allowances paid to individuals in that band for the reporting period;
(e) the average bonus paid to individuals in that band for the reporting period; and
(f) the total of items (b) through (e)
23.21 Where an entity has no employees within the scope of section 23.15 for both the current and comparative year, the table may be replaced with a text disclosure to this effect.
Director disclosures
Scope
23.22 For the purpose of section 23.24, disclosures must be prepared for directors of an authority or GBE.
Basis of preparation
23.23 Total remuneration must be the remuneration expenses (on an accrual basis) for the financial reporting period.
Disclosures
23.24 Authorities must disclose the following in the notes to the financial statements in respect of directors:
(a) the number of directors whose total remuneration for the financial reporting period falls within each successive $30,000 band, commencing at the band incorporating the lowest paid director; and
(b) the total remuneration of directors for the financial reporting period.
Other Disclosures
Secondment arrangements
23.25 Entities benefiting from a resource received free of charge arrangement must make a statement to the effect that the amounts disclosed are included as receipt of goods or services from another entity.
Consolidated financial statements
23.26 When preparing the consolidated financial statements for an economic entity, the parent entity is required to separately disclose the senior executives, directors and other employees of the following in accordance with the requirements of this division:
(a) the economic entity; and
(b) the parent entity, (including where the parent entity elects to disclose only parent entity supplementary information as permitted by Division 7).
24 Remuneration of Auditors
24.1 The disclosures under this division must be prepared in the format prescribed by Part K, even where zero balances occur in both the current and comparative years.
24.2 The fair value of any audit services provided free of charge must be shown in the notes to the financial statements.
24.3 For the purpose of this Division, performance audits are not taken to be audit services.
24.4 Entities must disclose the extent to which auditor’s remuneration is paid to an auditor other than the Auditor-General.
24.5 The amount disclosed under section 24.2 of this schedule must be recorded as resources received free of charge, with a corresponding expense.
25 Operating Expenditure for Heritage and Cultural Assets
25.1 An entity that is a Collection Institution must report operating expenditure for heritage and cultural assets.
Part E BALANCE SHEET
30 Financial Assets – General Information
31 Receivables for Statutory Charges
31.1 Receivables for statutory charges must be assessed for impairment under AASB 136.
32 Investment of Surplus Money by Authorities
32.1 Where an authority holds investments not covered by section 18(3)(a)-(c) of the CAC Act, it must include a note giving particulars of the investments. The note must provide details of the statutory basis for holding additional investments, including whether an approval has been received by the authority under section 18(3)(d) of the CAC Act.
33 Valuation of Non-Financial Assets
Scope
33.1 This division applies to assets within scope of AASB 116, AASB 138 and AASB 140.
33.2 Unless required by the applicable standard to be measured otherwise, subsequent to initial recognition entities must measure every type of asset listed below at fair value in accordance with AASB 116 or AASB 140 as applicable:
(a) land;
(b) buildings;
(c) heritage and cultural assets (where not intangible assets);
(d) investment properties; and
(e) other property, plant and equipment.
Valuation
33.3 Intangible assets must be valued by class in accordance with AASB 138, at:
(a) cost, in the absence of an active market; or
(b) fair value, where an active market exists for all assets in a class.
33.4 Each non-financial asset listed in section 33.2 or recognised in compliance with section 33.3(b), other than investment properties, must be assessed each year to ensure that the carrying amount does not differ materially from fair value as at reporting date. If there is a material difference then revaluation of the entire class is required.
33.5 Investment property must be revalued annually in compliance with AASB 140.
Specialist military equipment
33.6 The cost model must be applied to specialist military equipment. Fuels, explosives ordnance, general stores and consumables are not specialist military equipment.
34 Impairment of Non-Financial Assets
34.1 For the purposes of AASB 136, parts of entities are not cash‑generating units where they are primarily dependent on funding from appropriations.
35 Analysis of Non-Financial Assets
35.1 Notes to the financial statements must include the following presented in accordance with Part K:
(a) Table A Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment;
(b) Table B Reconciliation of the Opening and Closing Balances of Investment Property; and
(c) Table C Reconciliation of the Opening and Closing Balances of Intangibles.
35.2 Entities may combine tables required by this division where it is considered appropriate to simplify disclosure. Sufficient information and sub-total columns must be disclosed to enable reconciliation of amounts to the corresponding line items disclosed on the balance sheet.
37 Heritage and Cultural Assets
Scope
37.1 Heritage and cultural items must only be recognised as assets where they meet the asset definition and recognition criteria set out in AASB 116 or AASB 138.
37.2 Only assets that are primarily used for purposes that relate to their cultural, environmental or historical significance can be accounted for as heritage and cultural assets.
Disclosures
37.3 When an entity controls or administers heritage and cultural assets, the notes to the financial statements must disclose:
(a) a description of those items; and
(b) the curatorial and preservation policies for heritage and cultural assets. Where these policies are publicly available entities may instead provide a cross-reference to this information. These policies must include details on acquisition, preservation, management and disposal of heritage and cultural assets.
37.4 For the purposes of this division, the term ‘government department’ referred to in the statement listing pertinent entities in Australian Implementation Guidance to AASB 116 means an entity as defined in this schedule.
38 Assets Held in Trust
38.1 Financial statements of entities must include a note giving particulars of assets held in trust when the entity is a trustee in a legal trust arrangement. A legal trustee relationship may occur through formal appointment or otherwise.
38.2 The note referred to in section 38.1 must contain:
(a) a summary of the categories of assets held in trust at the end of the reporting period and the purpose for which they are being held;
(b) in relation to monetary assets held in trust, the entity must disclose:
(i) total amount held at the beginning of the reporting period;
(ii) total receipts during the reporting period;
(iii) total payments during the reporting period; and
(iv) total amount held at the end of the reporting period; and
(c) Subject to section 38.3, in relation to non-monetary assets held in trust, the entity must disclose:
(i) estimated value at the beginning of the reporting period;
(ii) estimated value of assets obtained during the reporting period;
(iii) estimated value of assets disposed of during the reporting period;
(iv) changes in fair value during the reporting period; and
(v) estimated value of assets at the end of the reporting period.
38.3 Where an estimated value cannot be assigned to a non-monetary asset, either because it is uneconomical or impractical to do so, the details in section 38.2(c) do not need to be disclosed. A statement from the entity asserting that it is uneconomical or impractical is taken to be sufficient evidence.
38.4 Where an entity applies section 38.3, it must provide additional disclosure stating why estimated values have not been used.
39 Joint Ventures
39.1 Subject to Division 87, entities must recognise interests in jointly controlled entities using the equity method and not proportionate consolidation.
40 Liabilities – General Information
41 Liabilities Relating to Dividends
41.1 Where legislation provides that a Minister(s) may determine the amount to be paid as a dividend or similar distribution, the entity must recognise a liability for any dividend or distribution determined by the Minister(s) at the date of the Ministerial determination.
41.2 Where a wholly-owned Australian Government entity is required to pay its profit for the year to the Australian Government, a liability for the dividend must be recognised for an amount equal to profit for the current year as at the entity’s reporting date.
41.3 Where an entity is required to pay its profit for the year to the Australian Government after the deduction of certain amounts, a liability for the dividend must be recognised if those amounts are known before the date of completion of the financial statements. If these amounts are not known before this date, the entity should instead disclose a contingent liability.
43 Employee Benefits
Key principles
43.1 Leave liabilities must be discounted on the basis of when the benefits are due to be settled.
43.2 In calculating LSL liability, entities with:
(a) less than or equal to 1,000 FTE employees can use the shorthand method; and
(b) more than 1,000 FTE employees must estimate the entity’s LSL liability using one of the following methods:
(i) an actuarial assessment;
(ii) a detailed calculation basis (e.g., employee by employee); or
(iii) where the employee profile is demonstrably not materially different from the Australian Government’s standard profile, entities may use the shorthand method.
On-costs
43.3 On-costs (e.g., workers’ compensation insurance and payroll tax) are not employee benefits.
44 Measurement and Disclosure of Post Employment Plans
Key principles
44.1 For plans where the actuarial risk (shortfall risk) falls on the entity, the entity must account for them as defined benefit plans.
44.2 The market yield on Government bonds must be referenced when determining a discount rate, in compliance with AASB 119.
PSS, CSS and military superannuation schemes (including the MSBS)
44.3 The Australian Government has a legal liability to meet the deficits of the PSS, CSS and military superannuation schemes; and as such liabilities related to these schemes are reported on behalf of the Australian Government in the administered reports of:
(a) Finance (for PSS and CSS); or
(b) Department of Defence (for military superannuation schemes).
44.4 Entities acting as agents collecting contributions from employees for the PSS, CSS and military superannuation schemes must:
(a) account for and make the required disclosures in accordance with AASB 119 as if they were contributing to defined contribution plans; and
(b) disclose the following facts and reference:
(i) that the entity is accounting for the scheme as a defined contribution plan;
(ii) that at the whole-of-Government level the scheme is a defined benefit plan and is accounted for as such; and
(iii) a reference to the financial statements in which the defined benefit disclosures have been or will be made.
44.5 Entities participating in the PSS and CSS Schemes must reference the administered disclosures made in Finance’s financial statements for these schemes. Finance’s financial statements do not need to be published for these references to be made.
45 Financial Instruments
Classification
45.1 Unless otherwise required under AASB 139, where an active market exists for a:
(a) financial asset - entities must classify the instrument as either at FVTPL or available for sale; and
(b) financial liability - entities must classify the instrument as at FVTPL.
45.2 AASB 139 allows a financial asset or liability to be designated as at FVTPL if it results in more relevant information in the specific circumstances outlined in the standard. If these circumstances apply and it results in more relevant information, entities must designate the instrument as FVTPL.
Impairment losses
45.3 Where permitted under an AAS, entities must:
(a) recognise all impairment losses on financial assets under AASB 139 in an allowance account (rather than adjusting these losses directly against the carrying amounts of the related assets); and
(b) maintain a separate allowance account for each class of financial asset.
Derivatives and hedging
45.4 Where an entity has held derivative financial instruments that are not part of a qualifying hedging arrangement at any time during the period, it must disclose:
(a) the management’s objectives for holding or issuing those derivatives;
(b) the context needed to understand those objectives; and
(c) the strategies for achieving those objectives.
45.5 Entities must adopt (a) in all cases where AASB 139 allows for a choice between:
(a) capitalising gains or losses on hedges into the carrying amount of the underlying assets; and
(b) progressively transferring such gains or losses from equity to income or expense.
Regular way purchase or sale
45.6 For regular way purchase or sale, entities must apply trade date accounting.
Concessional loans
45.7 Entities must disclose the nominal value of concessional loans as well as the unexpired discount.
Market risk sensitivity analysis
45.8 Where sensitivity analysis is required, entities must use the standard rates referenced in FinanceBrief 31 AASB 7 Financial Instruments: Disclosures Standardisation of market risk sensitivity analysis when disclosing market risk.
45.9 Approval from Finance is required for entities to use different rates in their sensitivity analysis.
Part F OTHER FACE STATEMENTS AND SCHEDULES
60 Cash Flow Statement
60.1 Entities must:
(a) present a cash flow statement using the direct method in compliance with AASB 107;
(b) present dividends paid as a component of financing activities; and
(c) show administered cash flows to/from the OPA as adjustments to administered cash held by an entity, rather than as cash flows related to operating or other activities.
80 Contingencies
Schedule of contingencies
80.1 Contingent liabilities and assets that can be reliably measured must be classified in accordance with the classes specified in the Part K; where applicable, new classes can be added.
80.2 A contingent liability and a contingent asset must not be netted off. The extent to which any contingent liabilities and assets are linked must be stated separately.
80.3 Unquantifiable contingent liabilities and assets that are not included in the schedule of contingencies must be explained in a note to the financial statements.
80.4 If an entity has given a financial guarantee, it must:
(a) state that fact beneath its schedule of contingencies; and
(b) include a cross reference to details regarding the guarantee in other notes to the financial statements.
80.5 Where there are no contingencies in either the current or the immediately preceding reporting periods, it is not necessary to include a schedule for such items. Instead, that fact can be disclosed in the notes to the financial statements.
Contingent liabilities
80.6 Significant remote contingent liabilities must be disclosed in the notes to the financial statements.
81 Commitments
81.1 Entities must disclose the nature, and where quantifiable, the amount of each class of departmental commitment except commitments for the supply of inventory in accordance with the tables in Part K.
81.2 Equivalent disclosure for administered commitments must be included in the administered reports (see Division 85 and Part K).
81.3 Commitments:
(a) are intentions to create liabilities or assets for the receiving entity, as evidenced by undertakings or agreements to make/obtain future payments to/from other entities as at the reporting date; and
(b) are executory contracts that are not recognised under AASB 137 (i.e. not onerous).
81.4 Commitments receivable must be disclosed where the inflow of resources is probable.
81.5 The amounts reported as commitments payable and commitments receivable must include GST where applicable. A corresponding commitment receivable or payable must be reported as a net figure in the schedule of commitments for the net GST recoverable from or payable to the ATO.
81.6 Subject to section 81.4, commitments payable and receivable must not offset against each other.
81.7 Where there are no commitments in either the current or the immediately preceding reporting periods, it is not necessary to include a schedule for such items. Instead, that fact can be disclosed in the notes to the financial statements.
Part G ADMINISTERED REPORTING
85 Administered Reporting – General Information
Scope
85.1 Entities that administer activities for the Australian Government must disclose administered reports as prescribed in Part K.
Disclosures
85.2 Administered reporting must:
(a) provide a brief description of the activities being administered on behalf of the Australian Government;
(b) include ‘administered’ as defined in Division 4;
(c) include an Administered Reconciliation Schedule in accordance with Part K;
(d) include disclosures in relation to accounting policies in accordance with the relevant AAS (e.g., AASB 1050) and all applicable requirements of this schedule; and
(e) be in a different background shading to ‘departmental’.
85.3 A statement of changes in equity is not required for administered.
87 Administered Investments
87.1 This division only applies to administered investments where the Government’s interest is in the nature of:
(a) subsidiaries under AASB 127;
(b) associates under AASB 128; or
(c) jointly controlled operations and jointly controlled entities under AASB 131.
87.2 Other investments (e.g., a one per cent shareholding in a listed company) are accounted for under Division 45.
87.3 Administered investments:
(a) are not considered controlled by the entities reporting them;
(b) must be disclosed in the administered reports;
(c) other than those held for sale in accordance with AASB 5, must be measured at fair value; and
(d) must not be consolidated on a line-by-line basis into an entity’s financial statements without approval from the Finance Chief Executive.
87.4 Entities must determine the fair value of administered investments using the following hierarchy:
(a) observable market value; and
(b) where (a) is not available, valuation techniques.
88 Administered Investments Held for Sale
Key principles
88.1 Administered investments held for sale:
(a) are accounted for in accordance with Division 45;
(b) must be reported by the relevant Portfolio Department unless a formal agreement or decision has been made to transfer the investments to Finance; and
(c) must be transferred at net book value.
Costs of sale
88.2 The costs of sale of an administered investment:
(a) are expensed as incurred, regardless of whether the investment meets the criteria to be held for sale in AASB 5; and
(b) must not be added to the carrying amount of administered investments.
88.3 Where the selling costs are expensed across a number of reporting periods, the total selling costs must be disclosed in a note to the administered reports.
Disclosures
88.4 Entities must disclose the following for each sale of an administered investment:
(a) proceeds from sale;
(b) written down value of the asset sold;
(c) recognised gain or loss on sale;
(d) selling costs incurred; and
(e) the net gain or loss after deducting selling costs incurred.
Date of transfer
88.5 Where a decision has been made to sell an administered investment, but the transfer date is not specified, the asset is deemed to have been transferred on the date of the sale decision.
Part H RESTRUCTURES
92 Restructures of Administrative Arrangements
92.1 Where a restructure of administrative arrangements has occurred during the reporting period as per AASB 1004, the relevant entities must:
(a) disclose details of the restructure of administrative arrangements in a note in the financial statements;
(b) disclose ‘departmental’ and ‘administered’ separately; and
(c) recognise assets and liabilities transferred at their net book value immediately prior to transfer.
92.2 For the purposes of this division, the terms:
(a) ‘government department’ in AASB 1004 means any Government controlled entity; and
(b) ‘legislation or other authority’ in the definition of a restructure of administrative arrangements in AASB 1004 means one of the followings:
(i) a decision of the Cabinet or Prime Minister;
(ii) an AAO;
(iii) an Act of Parliament or a Regulation under an Act; or
(iv) a written agreement between the relevant portfolio minister(s) and the Finance Minister or the Prime Minister, as appropriate.
Part I APPROPRIATIONS
100 Appropriations – General Requirements
Key principles
100.1 Entities must recognise and disclose appropriations (including special appropriations) in accordance with this schedule, regardless of whether the relevant amounts are considered to be material in accordance with Division 12.
100.2 Recognition for accounting purposes is by the entity named in the relevant legislation or if not named, the portfolio department, or as otherwise determined by the relevant Ministers.
Amounts appropriated for payment to an authority
100.3 An amount appropriated to an entity for payment to an authority (either through annual or special appropriations) is an administered appropriation to the entity and is recognised and disclosed accordingly.
Adjustments to appropriations
100.4 The following are adjustments to appropriation receivable, and must not be recognised as appropriation revenue:
(a) FMA Act section 30;
(b) FMA Act section 30A;
(c) FMA Act section 31; and
(d) FMA Act section 32 (prior year appropriation only).
FMA Act section 32 transfers
100.5 For FMA Act section 32 transfers, control of appropriation is lost or gained at the later of:
(a) the date of the determination; or
(b) the commencement date set out in the determination (note that FMA Act section 32(8) allows the transfer to take effect before or after the day it is registered).
Quarantining of appropriations
100.6 Although quarantining of an appropriation by Finance limits the ability of the entity to spend the appropriation, it does not of itself result in loss of control of the appropriation. Consequently, quarantining has no impact on recognition or disclosure of the appropriation for financial reporting purposes.
100 Departmental Appropriations
Scope
100.1 Entities must recognise all departmental appropriations (including departmental special appropriations) for which they are responsible.
Recognition
100.2 The earliest point of recognition for accounting purposes is when the entity gains control of the appropriation. For:
(a) loans specified in the Appropriation Acts, when drawn down from the OPA for the amount to be received;
(b) departmental special appropriations (except for special accounts), when the obligation for which the special appropriation exists is incurred (up to the amount of the obligation);
(c) special accounts, as per revenue recognition principles in Division 120;
(d) AFM (for Parliamentary Departments, advance to the responsible Presiding Officer), the date of the determination;
(e) departmental supplementation, the date of the approval; and
(f) all other departmental appropriations specified in the Appropriation Acts, at the later of:
(i) date of Royal Assent of the Appropriation Act; and
(ii) the commencement of the financial period the appropriation relates to (i.e., when the appropriation is effective).
100.3 Departmental appropriations (except for special appropriations) must be recognised at the amounts specified in the Appropriation Acts in the year of appropriation, adjusted, where applicable for formal additions and reductions. For departmental appropriations:
(a) amounts designated as contribution by owners must be recognised as equity;
(b) loan appropriations must be recognised as increases in borrowings – they are not revenue; and
(c) all other amounts must be recognised as revenue.
Equity returns and adjustments
100.4 Departmental equity returns must be recognised as a return of capital by adjusting contributed equity (not as a reduction in, or refund of, revenue). Departmental equity returns:
(a) occur where an entity:
(i) relinquishes control of funds which had been appropriation revenue in a previous reporting period; or
(ii) makes a non-reciprocal payment to the OPA other than as a dividend referred to in Division 41; and
(b) are recognised in the financial statements at the earliest of:
(i) the date the appropriation amount is reduced as a consequence of Government policy;
(ii) the date of effect of a Ministerial direction;
(iii) the date of the determination reducing a departmental appropriation in accordance with annual Appropriation Acts; and
(iv) where (i) to (iii) above are not applicable, the date of the payment.
Formal additions or reductions
100.5 Formal additions or reductions necessitate adjustments to recognition and disclosure of appropriations to the extent they have not already resulted in adjustments in previous years.
100.6 To be a formal addition or reduction, the gain or loss of control event, as outlined below, must be evidenced in writing from the appropriate authority. Formal additions and reductions are as follows:
(a) transfers of current year appropriation under FMA Act section 32;
(b) departmental supplementation;
(c) adjustments as stipulated by any agreement that provides for additional funding for over-delivery or a reduction of funding for under-delivery (such as purchasing, workload or other agreements), as well as funding arrangements that are specifically designed to not financially advantage or disadvantage an entity (appropriation on a no-win/no-loss basis). The agreements, at a minimum, must:
(i) set out one or more quantifiable deliverable(s) and/or a specific amount of appropriation relating to each; and
(ii) be approved by, or arise from, Ministerial or Cabinet decisions prior to the funding being given;
(d) amounts determined by the Finance Minister (or delegate) or an entity’s Minister or Presiding Officer under Part 3 of the Appropriation Acts; and
(e) all other adjustments made as a consequence of a decision of the Cabinet or the Prime Minister.
101 Administered Appropriations
Scope
101.1 Entities must recognise in their administered reconciliation schedule all administered appropriations (including administered special appropriations) for which they are the responsible entity.
Recognition
101.2 The earliest point of recognition for accounting purposes is:
(a) the date the amounts are drawn down to the entity’s bank account for payment against the appropriation for:
(i) administered annual appropriations; and
(ii) administered special appropriations; and
(b) the date stated in the determination (if not stated, then the date of the determination) for other administered amounts determined by:
(i) the Finance Minister (or delegate);
(ii) the entity’s Minister; or
(iii) the Presiding Officer under Part 3 of the Appropriation Acts.
101.3 Administered appropriations are not to be recognised as revenue in the administered schedule of comprehensive income.
Payments to CAC Act bodies
101.4 Payments from an agency to an authority in the nature of:
(a) an equity injection are an increase to the carrying amount of the administered investment of the agency;
(b) loan appropriations to CAC Act bodies must be accounted for as loans receivable by the relevant Portfolio Department. Interest repayments must be recorded as revenue in the Portfolio Department’s administered accounts, regardless of whether the interest is paid directly to the OPA or through the relevant Portfolio Department; and
(c) other payments (i.e., not in the nature of equity injection or loans) are recorded as expenses by the agency.
104 Disclosure of Appropriations
Disclosures - general
104.1 Entities must disclose the information contained in the tables below, in accordance with Part K:
(a) Table A Annual appropriations;
(b) Table B Departmental and Administered Capital Budgets;
(c) Table C Unspent annual appropriations;
(d) Table D Special appropriations;
(e) Table E Disclosure by agent in relation to annual and special appropriations; and
(f) Table F Reduction in administered items.
104.2 Tables A to F must be prepared on ‘recoverable GST exclusive’ basis. That is the following are excluded:
(a) GST on payments that is recoverable from the ATO;
(b) GST received on taxable supplies that is payable to the ATO; and
(c) Payments to/refunds from the ATO of GST amounts.
Parliamentary department appropriation acts and emergency acts
104.3 Entities must also apply the disclosures in this division to:
(a) Parliamentary Department Appropriation Acts; and
(b) Emergency Acts (such as those for the Northern Territory intervention).
Table A Annual appropriations
104.4 This table must be prepared on a cash basis.
104.5 The amounts shown must be the same as those set out in the relevant Appropriation Acts.
104.6 This table must include the following adjustments:
(a) appropriations reduced – reductions under the Appropriation Acts that adjust current year appropriations;
(b) AFM – appropriated in the current reporting period;
(c) FMA Act section 30 – repayments for which the associated payment was made from current year appropriation;
(d) FMA Act section 31 – receipts that have been recorded in the accounts and records of the responsible entity during the reporting period; and
(e) FMA Act section 32 – only current year appropriation increased or decreased by section 32 determinations.
104.7 The column “Appropriation applied in 20XX (current and prior years)” must include cash payments plus appropriations credited to special accounts for the reporting period. This includes both current and prior year appropriations.
104.8 The following information must be disclosed as footnotes to this table:
(a) a list of the Appropriation Acts (including section numbers) supporting amounts disclosed in these columns:
(i) ‘Appropriations reduced’; and
(ii) ‘AFM’;
(b) where applicable, a list of determinations by the Finance Minister supporting the amounts disclosed in the table detailing:
(i) the date of effect; and
(ii) the amount increased or decreased;
(c) formal additions or reductions recognised as per Division 101 but at law the appropriation has not been amended during the financial reporting period;
(d) an explanation of all material variances between:
(i) the appropriation applied in the reporting period; and
(ii) the amount appropriated (or otherwise authorised) for the current period; and
(e) an explanation of all material administered reductions under:
(i) section 11 of Appropriation Act 1, 3 and 5; or
(ii) section 12 of Appropriation Act 2, 4 and 6.
104.9 The “Total reduction in administered items” for the reporting period in Table F must be disclosed in the column “Appropriations reduced” in this table in the same reporting period.
Table B Departmental and Administered Capital Budgets
104.10 This table must be disclosed by all agencies who receive a Departmental Capital Budget and/or an Administered Capital Budget.
104.11 This table must be prepared on a cash basis.
104.12 The amounts shown must be the same as those set out in the relevant Appropriation Acts, Portfolio Budget Statements and Portfolio Additional Estimates Statements.
104.13 The table must include the following adjustments:
(a) appropriations reduced – reductions under the Appropriations Act that adjust current year appropriations;
(b) FMA Act section 32 – only current year appropriation increased or decreased by section 32 determinations.
104.14 The column “Capital Budget Appropriations applied in 20XX (current and prior years)” must include cash payments from both current and prior year appropriations.
104.15 The column “Payments for non-financial assets” must include purchases of assets, expenditure on assets which have been capitalised, costs incurred to make good an asset to its original condition and the capital repayment component of finance leases.
Table C Unspent annual appropriations
104.16 Entities must disclose the following:
(a) all unspent departmental and administered annual appropriations by Appropriation Act (including current and prior years appropriations); and
(b) total unspent departmental annual appropriations and total unspent administered annual appropriations.
Table D Special appropriations
104.17 Entities must disclose the following for each special appropriation:
(a) authority:
(i) for all special appropriations – the title of the legislation and whether the special appropriation is departmental or administered;
(ii) for special appropriations (limited amount) – limit for reporting period and appropriation lapsed; and
(iii) for special appropriations (FMA Act section 39) – total of prior year investments redeemed in current year and redemptions of current year investments (gross);
(b) type (e.g., unlimited amount, refund, FMA Act section 39 or limited amount);
(c) purpose; and
(d) appropriation applied:
(i) for special appropriations unlimited by amount, limited by amount or refund – the total of cash payments, amounts credited to special accounts less FMA Act section 30 repayments; and
(ii) for special appropriations (FMA Act section 39) – the total investments made during the year.
104.18 Entities must disclose all public money invested in authorised investments under FMA Act section 39 or surplus funds under CAC Act section 18 and 19 in Table D.
104.19 Where investments are made under an Act of Parliament other than FMA Act section 39, Table D requirements must be followed. The name of the relevant Act and section under which the investments were made must be disclosed. The title of the table must be amended appropriately.
Table E Disclosures by agent in relation to annual and special appropriations
104.20 Where an entity (‘the spending entity’) has paid money out of the CRF on behalf of another entity (‘the responsible entity’):
(a) the spending entity must disclose the following for each responsible entity:
(i) the name of the responsible entity;
(ii) total receipts and total payments (include departmental and administered items, as well as annual and special appropriations); and
(iii) the relationship between itself and the responsible entity; and
(b) the responsible entity must:
(i) apply the reporting requirements outlined in this schedule; and
(ii) disclose the name of the spending entity as a footnote to the relevant appropriations note tables.
Table F Reduction in administered items
104.21 Amounts in this table must be presented to the cent.
104.22 Where an entity’s outcome structure changes between financial years, it must prepare this table as follows:
(a) Table F (current year) - prepared under the new outcome structure; and
(b) Table F (comparative year) - prepared under the old outcome structure.
Adjustment of administered appropriations by Finance Minister
104.23 Where the required amount published in an entity’s annual report is adjusted by the Finance Minister (or the required amount was not published, but was subsequently specified by the Finance Minster), the entity must disclose the following:
(a) for the purposes of column “Appropriations reduced” in Table A – include the reduction as adjusted or subsequently specified by the Finance Minister, and also disclose the adjustment by way of footnote to Table A; and
(b) for the purposes of Table F – a footnote detailing that the required amount has been amended by the Finance Minister and the total amendment.
Part J OTHER DISCLOSURES
120 Special Accounts and FMA Act Section 39 Investments
Accounting
120.1 Appropriations that:
(a) have been received and recognised as income by an entity; and
(b) are subsequently transferred to a special account of that entity;
must not be recognised again as income to that entity. These transfers are internal transfers.
Disclosures
120.2 Entities must disclose the information contained in tables below in accordance with Part K:
(a) Table A Special Accounts; and
(b) Table B Investments made under FMA Act section 39.
Table A Special accounts
120.3 Table A must be prepared on a cash basis.
120.4 Table A must be prepared on ‘recoverable GST exclusive’ basis. That is, the following are excluded:
(c) GST on payments that is recoverable from the ATO;
(d) GST received on taxable supplies that is payable to the ATO; and
(e) payments to/receipts from the ATO of GST amounts.
120.5 Entities must disclose information on special accounts that existed in either the current year or comparative year regardless of whether they have been abolished or whether the relevant amounts are considered to be immaterial.
120.6 Where a special account has not been used during the current and the comparative reporting periods, the entity may make the following footnote disclosures instead of disclosing that special account in Table A:
(a) the title of the special acccount;
(b) the purpose of the special account;
(c) the authority under which the special account was established;
(d) a statement noting the fact that the special account has not been used during the current and the comparative reporting periods; and
(e) the balance of the special account.
120.7 Where the status of a special account has changed during the reporting period (e.g., the account has been established, varied, revoked or abolished):
(a) the nature and date of effect of each change must be disclosed as a footnote to Table A; and
(b) where the nature of these changes is significant, consideration must be given as to whether two tables should be prepared (one for before the change and one for after the change) to present the information in a true and fair manner.
120.8 Agencies must report money subject to trust law that form part of the balance of a special account adjacent to the special account disclosure.
Table B Investments made under FMA Act section 39
120.9 For all investments made under FMA Act section 39, entities must disclose an overview of investment policy used as a footnote to Table B.
120.10 Where investments are made under an Act of Parliament other than section 39 of the FMA Act, the same format as Table B should be followed. The name of the relevant Act and section under which the investment is made must be noted.
121 Reporting of Outcomes
Scope
121.1 GGS entities must disclose outcomes in accordance with this division.
Disclosures
121.2 Entities included in the Appropriation Acts (budget funded entities) must report on Government approved outcomes. Non-budget funded entities must report the outcomes that have been approved by the Finance Minister.
121.3 Entities must disclose the information contained in tables below in accordance with Part K:
(a) Table A Net cost of outcome delivery;
(b) Table B Major classes of departmental expenses, income, assets and liabilities by outcome; and
(c) Table C Major classes of administered expenses, income, assets and liabilities by outcome.
121.4 Tables A, B and C must be disclosed as follows:
(a) expenses, income, assets and liabilities at the outcome level; however, entities may choose to report some or all of this information at a lower level;
(b) amounts in the total column in Tables A, B and C must agree to the corresponding totals in the entity’s statement of comprehensive income, balance sheet and administered schedules where relevant;
(c) entities with only one outcome can omit Tables B and C but must disclose Table A;
(d) major classes disclosed in Tables B and C must match the major classes applicable to the disclosing entity;
(e) there must be a footnote to Table A detailing whether the net costs shown include intra-government costs (e.g., rent paid on Australian Government owned premises or fees for service) that would be eliminated in calculating the actual Budget outcome; and
(f) where an entity has a complex performance reporting framework, Tables B and C can be formatted like the Outcomes Reporting Table of the Department of Prime Minister and Cabinet’s Requirements for Annual Reports. That is, the outcomes can run down the side of the table and the major classes of expenses, income, assets and liabilities across the top with totals inserted after expenses.
121.5 Payments to CAC Act bodies are not related to paying entity’s outcomes and are therefore not attributed. They must, however, be included in the disclosures for completeness.
Attribution method
121.6 Entities must attribute shared items using a basis that most accurately allocates the expense, income, asset or liability to each outcome.
121.7 The attribution method used to apportion shared items must be reliable and must be disclosed in general terms in the text accompanying the tables. If this basis differs from that used in preparing the Budget, additional disclosure must be included to explain the variation.
Outcome changes during the reporting period
121.8 Where an outcome changes during the reporting period, entities must:
(a) match the changed outcome to the adjusted outcome arrangements approved through the portfolio additional estimates process and published in the most recent Appropriation Act; and
(b) apportion the expenses, income, assets and liabilities, such that entities report against the original outcome up to the date of the change and against the revised outcome after that date.
122 Compensation and Debt Relief in Special Circumstances
General disclosure
122.1 The disclosures under this division must be prepared in the format prescribed by Part K, even where zero balances occur in both the current and comparative years.
122.2 Entities that have the authority in relation to any of the following items must disclose a note in their financial statements showing expenses and liabilities for that item:
(a) Act of Grace payments made under FMA Act subsection 33(1) as approved by the Finance Minister (or delegate);
(b) Tactical Payments Scheme payments made under Part X of the Defence Act 1903 as approved by the Defence Minister (or delegate);
(c) waivers of amounts owing to the Australian Government, (being amounts that the entity would, but for the waiver, have been entitled to receive on behalf of the Australian Government);
(i) pursuant to FMA Act subsection 34(1); or
(ii) pursuant to other legislation, which must be specified.
(d) payments made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme;
(e) payments made under approved ex-gratia programs, the nature of which must be identified; and
(f) payments made in special circumstances relating to APS employment pursuant to section 73 of the PS Act.
122.3 The note must disclose:
(a) the number of cases and total amount expensed during the reporting period under each of the mechanisms specified under section 122.2; and
(b) the number and aggregate present value of future payments of those cases relating to any provisions at the end of the reporting period under each of the mechanisms specified under section 122.2.
Act of Grace Payments
122.4 Where Act of Grace payments expensed during the reporting period, includes periodic payments for specified periods (FMA Act subsection 33(1)(b) refers), the note must separately identify the number of such cases and the total amount expensed in relation to those cases.
Tactical Payments Scheme Payments
122.5 The note must disclose the number of cases and total amount expensed by operation for Tactical Payments Scheme payments.
Debt Waivers
122.6 The note must disclose the number of cases and aggregate amount for each of the legislative provisions under which waivers have been granted. Each disclosure must indicate the relevant legislative provision (that is, Act and section, subsection or paragraph number).
123 Competitive Neutrality and Cost Recovery
123.1 Entities that have made CN payments under the Commonwealth Competitive Neutrality Policy Statement – June 1996, must explain and separately disclose the amount of each of the following in accordance with Part K:
(a) CN – Regulatory Neutrality Expense;
(b) CN – Debt Neutrality Expense;
(c) CN – State Tax Equivalent Expense;
(d) CN – Commonwealth Tax Equivalent Expense;
(e) CN – Other Expense; and
(f) CN – Dividend.
123.2 Entities must disclose all receipts derived from cost recovery arrangements in accordance with Part K.
Part K PRIMA FORMS
150 PRIMA Forms
150.1 PRIMA Forms set out the prescriptive content, layout, and formatting requirements for all Australian Government entities in compiling and presenting their annual financial statements in compliance with common disclosure requirements of this schedule, the AAS and associated authoritative requirements.
150.2 Compliance with other reporting requirements in Division 8 is required where appropriate to present a true and fair view.
150.3 Entities are permitted:
(a) to include further disclosures as they deem appropriate to meet their stakeholders’ information needs and be reflective of their operations;
(b) to exclude components of the PRIMA Forms that are not relevant to their operations or where no activity in either the current or previous financial reporting period has taken place, unless inclusion is mandatory under another part of this schedule;
(c) to alter or amend the numbering of notes (but not their sequencing) to the financial statements as set out within the PRIMA Forms to ensure the contextual and logical flow of information for stakeholders;
(d) to aggregate line items that are not material; and
(e) to amend disclosures such that they reflect the nature of the entity, its activities, financial results and position as at the reporting date (this includes amending Note 1 of the PRIMA Forms so that it appropriately discloses the entity’s accounting policies).
