Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2007)
I, LINDSAY TANNER, Minister for Finance and Deregulation, make these Orders under subsection 63(1) of the Financial Management and Accountability Act 1997.
Dated eighteenth December 2007
Lindsay Tanner
Minister for Finance and Deregulation
1 Name of Orders
These Orders are the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2007).
Notes:
· These Orders are in relation to preparation of financial statements;
· Other matters relating to Agencies are dealt with in other Orders made by the Minister under subsection 63(1) of the Financial Management and Accountability Act 1997.
2 Commencement
These Orders commence on 1 July 2007.
3 Financial statements for reporting periods ending on or after 1 July 2007
Schedule 1 sets out the requirements for the preparation of annual financial statements for the reporting periods ending on or after 1 July 2007 for:
(a) subsection 49(2) of the Financial Management and Accountability Act 1997;
(b) subsection 50B(4) of the Defence Services Homes Act 1918 except to the extent that these differ from the requirements of AASB 1023 General Insurance Contracts, in which case the requirements of the standard will apply; and
(c) subsection 193H(1) of the Aboriginal and Torres Strait Islander Act 2005 (the Aboriginal and Torres Strait Islander Land Account).
Note:
· Schedule 1 is identical to Schedule 1 to the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2007) to achieve uniformity in financial reporting across the Australian Government public sector. There are, however, certain terms, requirements and references in Schedule 1 that apply to Commonwealth Authorities and not to Agencies, and vice‑versa.
Schedule 1 Finance Minister’s Orders for Financial Reporting for reporting periods ending on or after 1 July 2007
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 2007
CONTENTS
Part A INTRODUCTION.. 4
1 Legislative Authority. 4
2 Structure. 4
3 Further Information. 4
Part B DEFINITIONS AND ABBREVIATIONS. 5
4 Definitions. 5
5 Abbreviations. 14
Part C APPLICATION AND PRESENTATION.. 16
6 Commencement 16
7 Applicable Entities. 16
8 Authoritative Requirements. 16
9 Financial Reporting Structure and Form.. 17
10 Simplified Reporting. 18
11 Early Adoption of Accounting Pronouncements. 19
12 Materiality and Information Disclosure. 19
13 Rounding Off 19
14 Certificates. 20
15 Departmental and Administered Items: Classification and Reporting. 21
16 Exemptions from this Schedule. 21
17 Approved Exemptions. 21
Part D INCOME STATEMENT (Excluding Appropriations) 24
18 Income – General Information (excluding Appropriations) 24
19 Expenses – General Information. 24
20 Borrowing Costs. 24
21 Operating Leases. 24
22 Director/Executive Remuneration. 24
23 Remuneration of Auditors. 25
24 Competitive Neutrality. 26
Part E BALANCE SHEET.. 27
30 Financial Assets – General Information. 27
31 Receivables for Statutory Charges. 27
32 Investment of Surplus Money by Authorities. 27
33 Valuation of Non-Financial Assets. 27
34 Impairment of Non-Financial Assets. 28
35 Analysis of Non-Financial Assets. 28
36 Restricted Assets. 29
37 Heritage and Cultural Assets. 29
38 Assets Held in Trust 29
39 Joint Ventures. 30
40 Liabilities – General Information. 30
41 Liabilities Relating to Dividends. 30
42 Provisions. 31
43 Employee Benefits. 31
44 Measurement and Disclosure of Post Employment Plans. 32
45 Financial Instruments. 32
Part F OTHER FACE STATEMENTS AND SCHEDULES. 34
50 Statement of Changes in Equity. 34
60 Cash Flow Statement 34
75 Schedule of Administered Items. 34
80 Contingencies. 34
81 Commitments. 35
Part G ADMINISTERED REPORTING.. 36
85 Administered Reporting – General Information. 36
86 Income and Expenses Administered On Behalf of Government 37
87 Administered Investments. 37
88 Administered Investments Held for Sale. 37
89 Impairment of Administered Assets. 38
90 Liabilities Administered on Behalf of the Government 38
Part H RESTRUCTURES. 39
92 Restructures. 39
Part I APPROPRIATIONS. 40
100 Recognition of Appropriations – General Information. 40
101 Recognition of Appropriations - Departmental 40
102 Recognition of Appropriations - Administered. 43
103 Recognition of Appropriations – CAC Entities. 44
104 Disclosure of Appropriations. 44
Part J OTHER DISCLOSURES. 53
120 Special Accounts. 53
121 Reporting of Outcomes and Outputs. 55
122 Compensation and Debt Relief in Special Circumstances. 57
ANNEXURE A – FORMS OF FINANCIAL STATEMENTS. 59
Part A INTRODUCTION
1 Legislative Authority
1.1 The Minister for Finance and Deregulation (Finance Minister) makes:
(a) the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2007) under subsection 63(1) of the Financial Management and Accountability Act 1997 (FMA Act); and
(b) the Commonwealth Authorities and Companies Orders (Financial Statements for periods ending on or after 1 July 2007) under subsection 48(1) of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
1.2 These Orders are relevant to all reporting Entities covered by:
(a) section 49 of the FMA Act; or
(b) clause 2 of Schedule 1 to the CAC Act.
1.3 These Orders form part of the Financial Reporting Framework for Reporting 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 the Government Finance Statistics (GFS) framework is available, that treatment must be applied.
2 Structure
2.1 The following numbering conventions are used within this schedule:
(a) Major components are Parts, denoted by an upper case letter, eg A, B, C;
(b) Parts are broken into Divisions, denoted by a number. Divisions are not always numbered consecutively, to allow for future additions;
(c) Each Division is further broken up into sections, which commence at .1 in each Division.
3 Further Information
Part B DEFINITIONS AND ABBREVIATIONS
4 Definitions
Active Market
A market where all the following conditions exist:
(a) items traded within the market are homogenous;
(b) willing buyers and sellers can normally be found at any time; and
(c) the prices are available to the public.
(AASB 138 para. 8, AASB 136 para. 6, AASB 141 para. 8)
Administrative Arrangements Order (AAO)
The functions and activities of the Government are administered in accordance with the AAOs, issued from time to time by the Governor-General. The AAOs establish the matters to be dealt with by each Department of State, and the Acts of Parliament to be administered by each Minister.
Administered Investments
Investment by the in a subsidiary, associate or joint venture that is managed by an on behalf of the .
Administered Items
Those items that an 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 Policy, in order to achieve . Refer to 15 for further information.
AEIFRS
Australian Equivalents to International Financial Reporting Standards.
Agency
An Agency is as defined in section 5 of the FMA Act. Briefly, “Agency” means:
(a) Department of State (but not including any part of the Department that is a prescribed Agency);
(b) Department of the Parliament; or
(c) an Agency prescribed under Regulations to the FMA Act. Regulation 5 and its related Schedule list the prescribed Agencies.
Amortisation/ Depreciation
The systematic allocation of the of an asset, over its .
(AASB 138 para. 8, AASB 136 para. 6)
Appropriation
For the purposes of this Schedule, an authority under any Act or law to draw money from the Consolidated Revenue Fund, whether or not the law concerned used the word “appropriation” or “appropriated”.
Asset
A resource:
(a) controlled by an as a result of past events; and
(b) from which future economic benefits are expected to flow to the ; economic benefits being synonymous with service potential.
(AASB 138 para. 8, AAS 29 para. 17, Framework for the Preparation and Presentation of Financial Statements Aus 49.1)
Australian Government
All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.
Australian Accounting Standards
AAS and AASB Standards released by the Australian Accounting Standards Board.
Authority
A Commonwealth authority as defined in section 7 of the CAC Act. Also referred to in these orders as a ‘CAC Entity’.
Business Operation/s
Function or functions within an Agency that have been determined to be a Business Operation pursuant to Suborder 6.2.1 of the Financial Management and Accountability Orders 2005. They generally produce goods and services for persons or other Entities at market prices and are not ‘primarily’ funded by appropriations.
Carrying Amount
The amount at which an asset or is recognised after deducting any accumulated (or amortisation) and accumulated .
(AASB 116 para. 6, AASB 136 para. 6, AASB 138 para. 8)
Cash-Generating Unit
The smallest identifiable group of assets that generates cash inflows that is largely independent of the cash inflows from other assets or groups of assets.
(AASB 5 Appendix A, AASB 136 para. 6)
Commonwealth
The legal of the Commonwealth of Australia, created by the Australian Constitution.
Australian Government Consolidated Financial Statements (CFS)
The ’s (CFS) are the annual, end-of-year financial statements prepared under section 55 of the FMA Act and in accordance with Australian Accounting Standards, including AAS 31 Financial Reporting by Governments. The CFS report the consolidated results for the as well as disaggregated information on the various sectors of Government (General Government Sector, Public Non-financial Corporations and Public Financial Corporations).
Contingent Assets
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the .
(AASB 137 para. 10)
Contingent Liability
(a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the or
(b) a present obligation that arises from past events but is not recognised because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
(AASB 137 para. 10)
Cost
The amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards.
(AASB 116 para. 6, AASB 138 para. 8, AASB 140 para. 5)
Cost Recoveries
recovered directly from the provision of goods and services, including user charges. Cost recoveries do not include intra/inter-Government charging, charges by Government business enterprises, competitively neutral commercial charging arrangements, general taxation, repayment of loans to the , receipts from asset sales, including sales and licensing of patents or intellectual property, rental of property, royalties or other property related , fines and penalties, payments by customers to non- Entities where Commonwealth policies may affect prices, receipts from one-off specific policy measures, charges relating to industry-Government partnerships, statutory marketing levies, and fees charged by courts and tribunals.
Costs to sell
The incremental directly attributable to the disposal of an asset (or disposal group) excluding finance and income tax expense.
(AASB 5 Appendix A)
Departmental Items
Those items which the controls that are applied to the production of the Entity’s own outputs. Refer to 15 for further information.
Depreciable Amount
The of an asset, or other amount substituted for , less its residual value.
(AASB 116 para. 6, AASB 138 para. 8, AASB 136 para. 6)
Depreciated Replacement Cost
The current of an asset less, where applicable, accumulated calculated on the basis of such to reflect the already consumed or expired future economic benefits of the asset.
(AASB 136 para. 6)
Depreciation/ Amortisation
The systematic allocation of the of an asset over its .
(AASB 116 para. 6, AASB 136 para. 6)
Drawdown
An authorised transmission (drawdown) of funds from the Official Public Account (OPA) to either the respective Agency’s Official Administered Payments account or Official Departmental account.
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.
(AASB 2 Appendix A)
Employee Benefits
All forms of consideration given by an in exchange for services rendered by employees.
(AASB 119 para. 7)
Employee Entitlements
Refer to Employee Benefits.
Entity
Refers to an:
(a) Agency;
(b) ;
(c) Economic - comprising the or and its subsidiaries; and
(d) Each activity or activities of an 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.
Equity
The residual interest in the assets of the after deducting all its .
(Framework for the Preparation and Presentation of Financial Statements para. 49)
Expenses
Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrence of that result in decreases in , other than those relating to distributions to participants.
(Framework for the Preparation and Presentation of Financial Statements para. 70)
Fair Value
The amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
(AASB 116 para. 6, AASB 119 para. 7, AASB 132 para. 11, AASB 138 para. 8, AASB 139 para. 9)
FinanceBriefs
Provide clarification and guidance on the Government’s accounting and financial reporting policies as required throughout the year and are prepared by Finance.
Finance Chief Executive
Secretary of the Department of Finance and Deregulation.
Finance Lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.
(AASB 117 para. 4)
Financial Instrument
Any contract that gives rise to a financial asset of one and a financial or instrument of another .
(AASB 132 para. 11)
Financial Report/Statements
Includes:
(a) the primary statements, schedules and notes required by this Schedule; and
(b) any other certificates, reports and notes (other than the auditor’s report and annual report) attached to or intended to be read with the statements and notes required by (a);
prepared in relation to:
- the Agency or ; and
- where the Agency or is a parent , the economic comprising the Agency or and its subsidiaries.
‘’ as used in this Schedule must be taken to have the same meaning as the term ‘’ applied in the FMA Act and CAC Act.
For-Profit Entities
Any that does not meet the definition of a not-for-profit .
Gains
Gains represent items of Income that are not Revenue.
(Framework for the Preparation and Presentation of Financial Statements para. 75)
General Government Sector (GGS)
Institutional sector comprising all government units and non-profit institutions controlled and mainly financed by government.
(Australian System of Government Finance Statistics: Concepts, Sources and Methods 2005, Glossary)
Government Business Enterprises (GBE)
A Commonwealth authority or Commonwealth company that is prescribed as a GBE in regulations under the Commonwealth Authorities and Companies Regulations 1997.
Grants
Contributions of Government funds 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. Grants can take the form of money, property or technical assistance and subsidies. (See also AASB 120 para. 3)
Held for Sale
An shall classify a non-current asset (or disposal group) as held for sale if its will be recovered principally through a sale transaction rather than through continuing use.
(AASB 5 para. 6)
Impairment Loss
The amount by which the of an asset exceeds its recoverable amount.
(AASB 116 para. 6, AASB 136 para. 6, AASB 138 para. 8)
Income
Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. Income can be comprised of Revenue and Gains.
(Framework for the Preparation and Presentation of Financial Statements paras. 70(a) and 74)
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 . This does not mean the asset has an infinite useful life, but that the has the ability and intention to maintain the asset indefinitely in close approximation to its present state.
Intangible Asset
An identifiable non-monetary asset without physical substance.
(AASB 138 para. 8)
Liability
A present obligation of the arising from past events, the settlement of which is expected to result in an outflow from the of resources embodying economic benefits.
(AASB 137 para. 10)
Material
Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the . Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size and nature of the item, or a combination of both could be the determining factor. Refer to section 12.1.
( AASB 101 para. 11, AASB 108 para. 5, AASB 1031 Appendix)
Not-For-Profit Entities
An whose principal objective is not the generation of profit. A not-for-profit can be a single or a group of Entities comprising the parent and each of the Entities that it controls.
(AASB 116 para. AUS 6.1)
Operating Lease
A lease other than a finance lease (AASB 117 para. 4).
An operating lease does not transfer substantially all the risks and rewards incidental to ownership of the leased asset.
(AASB 117 para. 8)
Outcomes
The results, impacts or consequences of actions by the on the Australian community. Outcomes are the results or impacts that the Government wishes to achieve.
Outputs
The goods and services produced by Entities on behalf of Government for external organisations or individuals. Outputs include goods and services produced for other areas of Government external to the .
Personal Benefit Payments
Current transfers for the benefit of individuals or households (for example, child care and family tax benefits) that do not require any economic benefit to flow back to Government.
Portfolio Budget Statements
The aggregation of Agency Budget Statements by Portfolio.
Primary Financial Statements
The income statement, balance sheet, statement of changes in equity or statement of recognised income and expense, and cash flow statement
Provision
A of uncertain timing or amount.
(AASB 137 para. 10)
Recoverable Amount
Means the higher of: an asset’s less s to sell, and its .
(AASB 5 Appendix A, AASB 136 para. 6)
Redundancy
Termination of employment which is not a result of any personal act or fault of individual employees nor of any characteristic peculiar to them. Their employment is terminated because the employer no longer requires their jobs to be filled by anyone.
Reimbursement
To make repayment to a party for expense or loss incurred.
Reserves
Equity items, including:
(a) amounts set aside out of profits; or
(b) other gains or increments not reflected in the profit or loss (or surplus or deficit) (such as gains on of assets).
Resources Received Free of Charge
Services received for no or nominal consideration that would have been purchased if they had not been donated, and that can be reliably measured.
Revaluation
The act of recognising a reassessment of the of a non-current asset to its as at a particular date, but excludes recoverable amount write-downs and .
Revenue
The gross inflow of economic benefits during the period arising in the course of the ordinary activities of an when those inflows result in increases in equity, other than increases relating to contributions from equity participants.
(AASB 118 para. 7)
Special Account
Essentially a ledger entry within the Consolidated Revenue Fund (CRF) which is supported by standing appropriations (FMA Act sections 20 and 21). Special accounts allow money in the CRF to be set aside (hypothecated) for a particular purpose.
Special Appropriations
Monies appropriated under a specific Act of Parliament for a specific purpose that usually do not require annual authorisation by the Parliament.
Special Public Money
Special public money means public money that is not held on account of the Commonwealth or for the use or benefit of the Commonwealth.
(For example, money held by the Commonwealth on trust for another person is an example of special public money.)
(FMA Act subsection 16(4))
Subsidy
A grant made that supplements the of a good or service.
Useful Life
(a) The period over which an asset is expected to be available for use/used by the ; or
(b) the number of production or similar units expected to be obtained from the asset by the .
(AASB 116 para. 6, AASB 117 para. 4, AASB 136 para. 6)
Value in Use
The present value of the future cash flows expected to be derived from an asset or .
In respect of , value in use is depreciated replacement of an asset when the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the would, if deprived of the asset, replace its remaining future economic benefits.
(AASB 5 Appendix A, AASB 136 para. 6 and Aus 32.1)
5 Abbreviations
The Finance Minister’s Orders contain references to the sources of accounting and disclosure requirements. Key abbreviations used are as follows:
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 Accounting Standards issued by the Board, as the case requires
AEIFRS
Australian Equivalents to International Financial Reporting Standards (issued by the AASB)
ANAO
Australian National Audit Office
ATO
Australian Taxation Office
Aus
Paragraphs in the Australian Accounting Standards 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
ED
Exposure draft for a proposed Accounting Standard issued by the AASB
FFLA Act
The Financial Framework Legislation Amendment Act (No. 1) 2007
Finance
Department of Finance and Deregulation
FMA Act
The Financial Management and Accountability Act 1997
FMOs
The Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2007) made by the Finance Minister under the authority of section 63 of the FMA Act and the Commonwealth Authorities and Companies Orders (Financial Statements for periods ending on or after 1 July 2007) made by the Finance Minister under the authority of section 48 of the CAC Act
FRC
Financial Reporting Council
GBE
Government Business Enterprise
GFS
Government Finance Statistics
GGS
IASB
International Accounting Standards Board
IFRSs
International Financial Reporting Standards (issued by the IASB)
Int
AASB Interpretations (previously issued by the UIG)
OPA
Official Public Account
PFC
Public Financial Corporation
PNFC
Public Non-Financial Corporation
PRIMA
Primary Reporting and Information Management Aid
PS Act
Public Service Act 1999
SAC
Statements of Accounting Concepts issued by the AASB (or predecessor)
TER
Tax Equivalent Regime
UIG
Urgent Issues Group
Part C APPLICATION AND PRESENTATION
6 Commencement
6.1 Subject to 6.2, the requirements of this Schedule, including Annexure A, apply to financial statements prepared for reporting periods ending on or after 1 July 2007. These requirements replace previously published Finance Minister’s Orders for financial reporting.
6.2 For Entities that cease to exist on or after 1 July 2007, the financial reporting requirements set out in this Schedule shall apply.
7 Applicable Entities
7.1 Financial statements must be prepared for the following Entities:
(a) each and ;
(b) the economic , comprising the or and its subsidiaries; and
(c) each activity or activities of an which is/are determined to be a Business Operation.
8 Authoritative Requirements
8.1 Where there is a conflict between this Schedule and any other named authoritative requirement in 8.2, Entities are to apply the provisions in this Schedule.
8.2 Subject to 8.1, the of each must comply with the applicable Financial Reporting Framework for Entities. This Framework comprises and requires Entities to:
(a) comply with:
(i) all applicable requirements of this Schedule including Annexure A and other policies issued by Finance;
(ii) applicable accounting standards and accounting interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and
(b) have regard to:
(i) guidance to this Schedule and Annexure A;
(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 Memorandums, FinanceBriefs, Finance Circulars, Financial Management Guidance series and other guidance issued by Finance.
9 Financial Reporting Structure and Form
9.1 The financial statements of each must:
(a) include the primary financial statements, schedules and notes in the form prescribed in Annexure A;
(b) include all note disclosures specified in this Schedule and outlined in Annexure A; and
(c) be presented in the English language and Australian dollars.
9.2 The financial statements of each must be presented in the following order:
(a) statement required by 14.2 or 14.3;
(b) primary financial statements (income statement, balance sheet, statement of changes in equity or statement of recognised income and expense, and cash flow statement); and
(c) schedules and notes to the financial statements.
9.3 Comparative information must be disclosed in the unless not required by this Schedule or Australian Accounting Standards.
9.4 This Schedule applies to departmental as well as administered items unless otherwise specified.
9.5 Entities must include sub-total rows and/or columns in Annexure A notes as required to reconcile to line items on the face of the primary statements. Additional total and sub-total rows and columns may be included to present information required by Australian Accounting Standards or to improve the clarity of the financial statements.
9.6 Where zero balances occur, the line item may be omitted, except for balances that relate to the following items:
(a) Appropriations under ;
(b) Special Accounts under 120; and
(c) Compensation and Debt Relief disclosures under 122.
10 Simplified Reporting
10.1 Entities may adopt the simplified reporting provisions set out in 10.2 to 10.6 having regard to 8.2 and the order of information outlined in Annexure A.
Presentation of Primary Financial Statements
10.2 Where an ’s net surplus/deficit is solely attributable to the in both the current and immediately preceding reporting periods, the income statement line items ‘Surplus (deficit) attributable to the ’ and ‘Surplus (deficit) attributable to minority interest’ may be omitted.
10.3 Where an amount is disclosed on the face of a primary statement, it is not necessary to repeat this information in the notes to the financial statements, unless this is required in conjunction with the presentation of other information.
Notes to the Financial Statements
10.4 Where the of each class of an ’s financial s and financial equals its in both the current and immediately preceding reporting periods, Entities may state this fact rather than disclosing these amounts.
10.5 In relation to 122 of this Schedule, an that has no transactions in either the current reporting or any comparative period, must disclose by way of a note that there were no such transactions or balances.
10.6 Where there are no commitments or contingencies in either the current or the immediately preceding reporting periods, it is not necessary to include a schedule for such items. Instead, the fact that there are no such items must be disclosed in the notes to the financial statements.
11 Early Adoption of Accounting Pronouncements
11.1 If an wishes to adopt a new accounting standard 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 a new accounting standard or AASB Interpretation.
12 Materiality and Information Disclosure
12.1 The requirements of this Schedule apply where information resulting from their application is , or as specifically stated within the Schedule.
12.2 Information is if its omission, misstatement or non-disclosure has the potential, individually or collectively, to:
(a) influence the economic decisions of users taken on the basis of the financial statements; or
(b) affect the discharge of accountability by management or the governing body of the .
12.3 Entities must prepare financial statements and notes to reflect of information pursuant to this Schedule at the individual level.
12.4 Entities must maintain proper accounting records to support all disclosures required by this Schedule and the supporting policy.
12.5 Each change in accounting policy must be disclosed separately.
13 Rounding Off
13.1 Unless otherwise provided in this Schedule, amounts in the and notes may be rounded off to the nearest dollar, or where applicable as follows:
(a) where a reporting has , , , , commitments or contingencies in excess of $10 million — it may round an amount to the nearest $1,000, unless that amount is less than $500, in which case the amount should be rounded to zero; and
(b) where a reporting has , , , , commitments or contingencies in excess of $1 billion — it may round an amount to the nearest $1 million, unless that amount is less than $500,000, in which case the amount should be rounded to zero.
13.2 Amounts reported in the notes to the for , Special Accounts and are to be rounded to the nearest dollar, or $1,000 where the Entity meets the requirements of 13.1(a). Paragraph 13.1(b) does not apply.
13.3 Rounding must be applied consistently within Departmental reporting. Rounding must be applied consistently within Administered reporting. However, in accordance with 13.1, rounding need not be consistent between Departmental and Administered reporting, with the exception of appropriations, outcomes and Special Accounts disclosures.
13.4 Materiality must be considered prior to rounding generally, to ensure rounding does not affect overall materiality of disclosure.
14 Certificates
14.1 The signed audit report on the financial statements must be attached to the financial statements.
14.2 Each economic , comprising an Authority or an and its subsidiaries’ financial statements as applicable, must present a statement signed by the Chair of the Board (or a Director) in accordance with a resolution of the Board, and the Chief Executive Officer, stating:
(a) whether the and notes, in their opinion, give a true and fair view of the matters required by this Schedule;
(b) whether the and notes, 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 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 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 identified in 7.1 required to prepare financial statements must include a statement signed by the Chief Executive Officer stating:
(a) whether the and notes, in their opinion, give a true and fair view of the matters required by this Schedule;
(b) whether the and notes, 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 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 Items: Classification and Reporting
15.1 With the exception of items covered under 38, Entities must distinguish items as ‘departmental’ or ‘administered’ in the financial statements for all disclosures outlined in this Schedule.
15.2 The financial statements must present administered and departmental items in accordance with Cabinet decisions on their classification.
15.3 No changes are to be made to the classification of existing items without the approval of Cabinet or the Finance Minister.
15.4 Trust money is neither departmental nor administered. Specific reporting requirements apply in relation to assets held in trust (refer to 38 of this Schedule).
16 Exemptions from this Schedule
16.1 The Finance Minister may grant a written exemption to the Chief Executive Officer of an , or Directors of an , 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 exemption granted under 16.1 and applied by the Entity in the financial statements.
17 Approved Exemptions
17.1 Certain limited exemptions to this schedule apply to Entities as specified below.
17.2 33.9 constitutes an approved exemption for a for-profit or an that is a university to elect not to apply the requirements at 33.2, 33.3, 33.7 and 33.8 relating to valuation of non-financial assets.
17.3 22.1 provides an exemption to from making disclosures under 22, however these Entities are required to make the necessary disclosures in accordance with AASB 124 Related Party Disclosures.
17.4 Public Financial Corporations (PFCs) and Business Enterprises (GBEs) can 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 are to apply the “direct to equity” option of recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. This is applicable to departmental and administered items.
17.5 The Australian Office of Financial Management (AOFM) is excluded from the requirement to present the schedule of administered items and associated administered notes required by 85.2 and Annexure A. However, AOFM must instead adhere to the income statement reporting requirements of AASB 101 Presentation of financial statements.
17.6 In accordance with 38.5, Intelligence and Security Agencies, Defence Agencies and Prescribed Law Enforcement Agencies are exempt from making disclosures under 38.
17.7 The Reserve Bank of Australia is not required to prepare financial statements in the format prescribed by Annexure A. The Reserve Bank of Australia can determine the format of the financial statements and notes to the extent that it applies generally accepted industry reporting principles and applicable Australian Accounting Standards.
17.8 The Future Fund is exempt from presenting the financial statements required by this Schedule and Annexure A, 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 Australian Accounting Standards;
(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 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.
17.9 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.
17.10 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 Annexure A;
(b) Part I to the extent that the Land Account has no appropriation transactions and balances other than through its Special Account; and
(c) Division 121 to the extent that the Land Account does not have any defined outcomes and outputs.
17.11 The Land Account is required to present its administered activities in departmental format as illustrated in Annexure A. The accounting policy note must clearly state that all activities are administered.
17.12 Other entities that include the activities of the Land Account must continue to comply with the FMOs in the preparation of their financial statements.
17.13 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 17.10 under the same conditions imposed on the Land Account in 17.11 and 17.12.
Part D INCOME STATEMENT (Excluding Appropriations)
18 Income – General Information (excluding Appropriations)
18.1 Entities must recognise in compliance with Australian Accounting Standards.
Grants
18.2 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 income statement and not deduct them from the related expense.
19 Expenses – General Information
19.1 Entities must recognise in compliance with Australian Accounting Standards and the requirements of this Schedule.
20 Borrowing Costs
20.1 Borrowing s are to be expensed as incurred. The alternative treatment allowed under AASB 123 Borrowing Costs is not to be adopted.
21 Operating Leases
21.1 Entities must recognise minimum payments as on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user’s benefit.
21.2 Contingent rentals are recognised as in the period in which they are incurred.
22 Director/Executive Remuneration
22.1 must disclose Directors’ and Executive remuneration in compliance with this Division. are exempt from making these disclosures but they must make disclosures required by AASB 124 Related Party Disclosures.
22.2 22 applies to the following groups of individuals:
(a) Senior Executives of an Agency; and
(b) Senior Executives and Directors of an Authority; and
(c) Senior Executives and Directors of the economic entity, where an Agency or Authority is the parent in the economic entity.
22.3 The following must be disclosed in the notes to the :
(a) the number of individuals, listed in 22.2, whose total remuneration for the financial year falls within each successive $15,000 band, commencing at:
(i) For all Senior Executives - $130,000; and
(ii) For all Directors - the band incorporating the lowest paid Director;
(b) the total remuneration for each group of individuals referred to in paragraph (a); and
(c) the aggregate amount of separation and for Senior Executives.
Senior Executives and Directors are to be disclosed separately.
22.4 The that is the recipient of a Senior Executive or Director in a secondment arrangement must disclose the amount of of the Senior Executive or Director. This is regardless of whether the is paid by the recipient , or otherwise received as resources free of charge by the recipient . Entities benefiting from the receipt of a resources free of charge arrangement must make a statement to the effect that amounts disclosed are included as receipt of goods or services from another Government .
22.5 An that is party to a fee for service contract with a second and is not the direct employer of the Senior Executive or Director subject to the contract, is exempt from making disclosures under 22 in respect of those arrangements.
22.6 The of Star ranked military officers must be disclosed, as required by 22.3, including any short period of secondment or deployment domestically or overseas.
23 Remuneration of Auditors
23.1 The financial statements of an must include a note giving particulars of the amounts paid or payable in relation to auditor’s services, for:
(a) auditing the financial statements for the reporting period; and
(b) any other services provided during the reporting period.
23.2 The of any of the services provided free of charge by the Auditor-General must be shown in the notes to the . For the purpose of this Division, performance audits are not taken to be services provided to an .
23.3 Authorities must disclose the extent to which auditor’s is paid to an auditor other than the Auditor-General.
24 Competitive Neutrality
24.1 Entities that are required to make competitive neutrality (CN) payments under the Commonwealth Competitive Neutrality Policy Statement – June 1996, must explain and disclose the amount of each of the following:
(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.
Part E BALANCE SHEET
30 Financial Assets – General Information
30.1 Entities must recognise financial in compliance with 45 and other requirements of this Schedule.
30.2 receivable are not under AASB 139 Financial Instruments: Recognition and Measurement, as they are not contractually based, and thus must not be discounted in accordance with that Standard.
31 Receivables for Statutory Charges
31.1 Receivables for statutory charges are to be assessed for impairment under AASB 136 Impairment of Assets.
32 Investment of Surplus Money by Authorities
32.1 The financial statements of an must include a note giving particulars of any investments held that are not covered by paragraphs 18(3)(a)-(c) of the CAC Act.
32.2 Details should include the statutory basis for holding additional investments outside those allowed under paragraphs 18(3)(a)-(c) of the CAC Act, including whether an approval has been received by the under paragraph 18(3)(d) of the CAC Act.
33 Valuation of Non-Financial Assets
33.1 Non-financial must be initially recognised as outlined in the relevant Australian Accounting Standard.
33.2 Subject to 33.5 and 33.7, subsequent to initial recognition Entities must measure every type of departmental and administered listed below at in accordance with AASB 116 Property, Plant and Equipment or AASB 140 Investment Property as applicable, or where not listed, in accordance with 33.3, 33.4 or 33.6, as applicable:
(a) land;
(b) buildings;
(c) infrastructure, plant and equipment;
(d) heritage and cultural (where not intangible assets); and
(e) investment properties.
33.3 Intangible must be valued by class, at:
(a) , in the absence of an ; or
(b) , where an exists.
33.4 Inventories must be revalued in accordance with AASB 102 Inventories. Inventories held for sale are not subject to 33.5.
33.5 Non-current that are ‘held for sale’ as defined in AASB 5 Non-current Assets Held for Sale and Discontinued Operations must be recorded in accordance with AASB 5.
33.6 The basis must be applied to Specialist Military Equipment.
33.7 Subject to 33.5, each non-financial included in the types listed in 33.2 or recognised in compliance with 33.3(b), other than investment property, must be assessed by Entities each year to ensure that the does not differ materially from as at reporting date. If there is a material difference in the carrying value of an asset then revaluation of the entire class is required.
33.8 Investment property must be revalued annually in compliance with AASB 140.
33.9 For-profit Entities and Entities classified as universities may elect not to apply the requirements of 33.2, 33.3, 33.7 and 33.8 .
34 Impairment of Non-Financial Assets
34.1 Entities must assess assets for indications of impairment at least annually. Where there is indication that an may be impaired, the must test the individual for impairment. In testing an asset for impairment, an Entity must assess the recoverable amount of the asset in accordance with AASB 136 Impairment of Assets. Not‑for‑profit entities must comply with AASB 136 paragraph Aus 32.1 in respect of non-cash generating assets. AASB 136 allows impairment testing of ‘cash generating units’ where it is not possible to estimate the recoverable amount of the individual .
34.2 Entities, or parts of Entities, other than those whose predominant purpose is to generate net cash inflows, are not for the purpose of AASB 136.
34.3 For the purposes of AASB 136, parts of Entities are not where they are primarily dependent on funding from (other than FMA Act section 31 ).
34.4 Impairment losses on assets for the period must be reported in the financial statements.
35 Analysis of Non-Financial Assets
35.1 Notes to the must include the following Tables in Annexure A, where applicable:
Table A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment;
Table B: Reconciliation of the Opening and Closing Balances of Investment Property; and
Table C: Reconciliation of the Opening and Closing Balances of Intangibles.
Entities may combine Tables 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.
36 Restricted Assets
36.1 Where the use of a departmental or administered is restricted, wholly or in part, by regulations or other externally-imposed requirements, and information about those restrictions is relevant to assessing the performance or financial position of the , the must disclose in the notes to the :
(a) the identity and of the ; and
(b) the nature of the restrictions.
36.2 Where the use or holding of an is subject to restrictions, the ascribed to that must reflect those restrictions where it is possible to assess the impact.
37 Heritage and Cultural Assets
37.1 Departmental and administered heritage and cultural items must only be recognised as where they meet the definition and recognition criteria set out in the relevant Australian Accounting Standard.
37.2 Heritage and cultural having an indefinite useful life must not be depreciated. A useful life exceeding 200 years is deemed to be indefinite.
37.3 When an controls or administers heritage and cultural items that are not recognised as , the notes to the must disclose:
(a) a description of those items;
(b) the reason for non-recognition of those items;
(c) the amount expended to acquire such items during the financial year; and
(d) the amount of proceeds from the disposal of such items during the financial year.
38 Assets Held in Trust
38.1 of Entities must include a note giving particulars of held in trust when the is a Trustee in a legal trust arrangement. A legal Trustee relationship may occur through formal appointment or otherwise.
38.2 Assets held in Trust are not Restricted Assets as referred to in 36
38.3 The note referred to in 38.1 must contain:
(a) a summary of the categories of held in trust at the end of the reporting period and the purpose for which they are being held in trust;
(b) in relation to monetary held in trust, an is required to 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) in relation to non-monetary held in trust, an is required to disclose the:
(i) estimated value at the beginning of the reporting period;
(ii) estimated value of obtained during the reporting period;
(iii) estimated value of disposed of during the reporting period; and
(iv) estimated value of at the end of the reporting period.
38.4 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 38.3(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. However, an Entity must provide additional disclosure stating why estimated values have not been used.
38.5 Intelligence and Security Agencies, Defence Agencies and Prescribed Law Enforcement Agencies are exempt from the disclosure requirements under 38.
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
40.1 Entities must disclose financial in compliance with 45.
(a) DFH
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 must recognise a for any dividend or distribution determined by a Minister(s) at the date of the Ministerial determination.
41.2 Where a wholly-owned is required to pay its profit for the year to the , a must be recognised for an amount equal to profit for the current year as at the ’s reporting date.
41.3 Where an is required to pay its profit for the year to the after the deduction of certain amounts, a for the dividend must be recognised if those amounts are known before the date of completion of the . If these amounts are not known before this date, the should instead disclose a contingent .
41.4 Entities must account for a return of capital through non-reciprocal payments in accordance with 101.15 and recognise a reduction in in the financial statements in compliance with 101.16. These are not dividends.
42 Provisions
43 Employee Benefits
Employee Benefits Disclosures
43.1 Entities must report as required in AASB 119 Employee Benefits. Leave are to be discounted on the basis of when leave is expected to be taken.
Annual and Long Service Leave
Annual Leave
43.2 Entities must identify any annual leave that is not expected to be consumed within twelve months after the reporting date and ensure it is discounted in accordance with other long term under AASB 119. Annual leave that is expected to be consumed within twelve months is measured at nominal amounts.
Long Service Leave
43.3 Entities with less than 1,000 full-time equivalent employees (FTE) may continue to use the shorthand method when calculating their long-service leave .
43.4 Entities with more than 1,000 FTE are to undertake their own assessments to estimate the for long service leave. The method of doing this would be one of the following:
(a) If an ’s profile is demonstrably not materially different from the ’s standard profile, Entities may use the shorthand method;
(b) Undertake an actuarial assessment; or
(c) Use a detailed calculation basis (e.g. by ).
44 Measurement and Disclosure of Post Employment Plans
44.1 Entities as agents collecting contributions from employees for the Public Sector Superannuation Scheme (PSS), Commonwealth Superannuation Scheme (CSS) and military superannuation Schemes (including the Military Superannuation and Benefits Scheme (MSBS) must account for, and make the required disclosures in accordance with AASB 119 as if they were contributing to defined contribution plans. In addition, the following must be disclosed:
(a) that the is accounting for the Scheme as a defined contribution plan;
(b) that at the Whole-of-Government level the Scheme is a defined benefit plan and is accounted for as such; and
(c) a reference to the financial statements in which the defined benefit disclosures have been or will be made.
44.2 Entities participating in the PSS and CSS Schemes must reference the administered disclosures made in Finance’s financial statements for these Schemes. The Finance financial statements do not need to be published for these references to be made.
44.3 Public Financial Corporations (PFCs) and Business Enterprises (GBEs) can 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 are to apply the ‘direct to equity’ option of recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. This section is applicable to departmental and .
44.4 Plans where the actuarial risk (shortfall risk) falls on the must be accounted for as defined benefit plans.
44.5 The market yield on long-term Government bonds must be referenced when determining a discount rate for discounting in compliance with AASB 119.
45 Financial Instruments
45.1 Entities must classify and record in accordance with AASB 139 Financial Instruments: Recognition and Measurement pursuant to the definition in that Standard when the becomes a party to the enforceable provisions of a in accordance with AASB 139 paragraph 14 (see also Appendix A paragraph AG35).
45.2 Where an exists for a financial asset (for example a listed share) an shall classify the instrument as either ‘at through profit or loss’ or ‘available for sale’, unless it is unable to do so under AASB 139.
45.3 After initial measurement an must measure all financial liabilities at amortised cost, except for:
(a) financial liabilities held ‘at fair value through profit and loss’; or
(b) financial liabilities designated as hedge items
unless it is unable to do so under AASB 139.
45.4 For ‘regular way purchase or sale’, ‘trade date’ accounting must be applied.
45.5 Entities must recognise all on under AASB 139 in an allowance account where permitted, rather than adjusting these losses directly against the of the related . A separate account must be maintained for each class of financial .
45.6 Where AASB 139 allows Entities to choose between:
(a) capitalising gains and losses on hedges into the of the underlying ; and
(b) progressively transferring such gains and losses from to or expense,
Entities must adopt (a) in all cases.
45.7 Where an has held derivative that are not part of a qualifying hedging arrangement, at any time during the period, it shall disclose:
(a) 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.
Part F OTHER FACE STATEMENTS AND SCHEDULES
50 Statement of Changes in Equity
50.1 Entities must prepare a statement of changes in equity or statement of recognised income and expense in compliance with AASB 101 Presentation of Financial Statements.
50.2 A statement of changes in equity or statement of recognised income and expense is not required for .
60 Cash Flow Statement
60.1 Entities must prepare a cash flow statement using the ‘direct method’ in compliance with AASB 107 Cash Flow Statements.
60.2 Dividends paid are to be presented as a component of financing activities.
75 Schedule of Administered Items
75.1 Entities must prepare a schedule of administered items in compliance with 85 of this Schedule.
80 Contingencies
Schedule of Contingencies
80.1 Contingent and contingent that are able to be reliably measured must be classified in accordance with the classes in the schedule of contingencies in Annexure A; where applicable, new classes can be added.
80.2 Unquantifiable contingent and contingent that are not included in the schedule of contingencies but may have an impact on the operations of the Entity must be explained in a note to the .
80.3 Where there are no contingencies in either the current or the immediately preceding reporting periods, it is not necessary for an to include a schedule for such items. Instead, the fact that there are no such items should be disclosed in the notes to the .
80.4 Contingent and contingent are not required to be disclosed where it is expected that disclosure would seriously prejudice the Commonwealth. In these rare cases Entities should apply paragraph 92 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
Contingent Liabilities
80.5 Entities must disclose departmental contingent that can be reliably measured (quantifiable) in the schedule of contingencies, in accordance with Annexure A, except where the probability of a being recognised in the future is . Equivalent disclosure for administered contingent must be included in the schedule of administered items.
Contingent Assets
80.6 Entities must disclose departmental contingent that can be reliably measured (quantifiable) in the schedule of contingencies, in accordance with Annexure A where it is less than probable that an will be recognised in the future. Equivalent disclosure for administered contingent must be included in the schedule of administered items.
81 Commitments
81.1 Entities must disclose the nature, and where quantifiable, the amount of each class of departmental commitments in a schedule of commitments in accordance with the tables in Annexure A and in compliance with Australian Accounting Standards. Equivalent disclosure for administered commitments must be included in the schedule of administered items.
81.2 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, the fact that there are no such items should be disclosed in the notes to the .
81.3 Commitments receivable must be disclosed where the inflow of resources is probable.
81.4 The amounts reported as commitments payable must include GST where applicable. A corresponding commitment receivable must be recorded for GST amounts recoverable from the Australian Taxation Office.
Part G ADMINISTERED REPORTING
85 Administered Reporting – General Information
85.1 Entities must disclose identified as such under 15.
85.2 The financial statements of an that administers activities for the , must include a schedule of administered items and associated administered notes.
85.3 The schedule of administered items and associated administered notes must:
(a) include as defined in 15;
(b) be presented in the form prescribed by Annexure A;
(c) include the administered reconciliation table in accordance with 85.6;
(d) include disclosures in relation to accounting policies and in accordance with the relevant accounting standards; and
(e) use background shading for the schedule of administered items and administered notes.
85.4 The schedule of administered items and administered notes must:
(a) comply with all applicable requirements of this Schedule; and
(b) provide in the heading of, or as a footnote to, the schedule of administered items, a brief description of the activities being administered on behalf of the .
85.5 A statement of changes in equity or statement of recognised income and expense is not required for .
85.6 The administered reconciliation table must include the following line items:
(a) Opening administered less administered as at 1 July
(b) Adjustment for change in accounting policies
(c) Adjustment for errors
(d) Adjusted opening administered assets less administered liabilities
(e) Plus: Administered
(f) Less: Administered
(g) Administered transfers to/from :
(i) Appropriation transfers from OPA:
· Annual administered
· Administered and appropriations
· Special appropriations (limited)
· Special appropriations (unlimited)
(ii) Transfers to OPA
(iii) Restructuring
(h) Transfers to other Entities (Finance only)
(i) Transfers from other Entities (Finance only)
(j) Administered taken to/from
(k) Currency translation gain/loss
(l) Closing administered less administered as at 30 June
85.7 Administered transfers must be recognised and reported in compliance with 92.2 of this Schedule.
86 Income and Expenses Administered On Behalf of Government
86.1 Transfers of administered assets and liabilities between wholly owned Entities are not to be recorded as administered and .
87 Administered Investments
87.1 must be disclosed in the financial statements by all Entities.
87.2 , other than those in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, must be measured at .
87.3 Administered investments are not considered controlled by the Agency reporting them.
87.4 Administered investments must not be consolidated on a line by line basis into an Agency’s financial statements without approval from the Finance Chief Executive.
88 Administered Investments Held for Sale
88.1 Entities must disclose as ‘’ when they meet the requirements of AASB 5 Non-current Assets Held for Sale and Discontinued Operations.
88.2 Immediately prior to being classified as ‘held for sale’ administered investments must be revalued in accordance with the applicable accounting standard.
88.3 The measurement provisions of AASB 5 do not apply to administered investments, as they are exempt financial assets under AASB 5.
88.4 Where a decision to transfer an to another for sale has been taken, but the transfer date is not specified, the is assumed to have been transferred on the date of the decision to sell the .
88.5 Transfers of must be transferred at net book value and accounted for in accordance with 45 of this Schedule.
88.6 The s of sale of an are expensed as incurred, regardless of whether the investment meets the criteria to be ‘’ in AASB 5. Costs of sale are not added to the of but the total selling must be disclosed in a note to the where the selling s are expensed across a number of financial years.
88.7 The following particulars must be disclosed in the administered notes for each sale of an administered investment:
(a) proceeds from sale;
(b) written down value of the sold;
(c) recognised gain or loss on sale;
(d) selling s incurred; and
(e) the net gain or loss after deducting selling s incurred.
89 Impairment of Administered Assets
89.1 Entities must apply the impairment provisions under AASB 139 Financial Instruments: Recognition and Measurement to as well as other administered financial instruments accounted for under AASB 139.
89.2 Administered assets other than financial instruments should be assessed for impairment under the appropriate accounting standard.
90 Liabilities Administered on Behalf of the Government
90.1 The has a legal to meet the deficits of the PSS, CSS and military superannuation Schemes, and as such liabilities related to these Schemes are reported in the administered financial statements of Finance (PSS and CSS) and the Department of Defence (military superannuation schemes) on behalf of the .
Part H RESTRUCTURES
92 Restructures
92.1 Where restructures have occurred during the reporting period, the of Entities must include a note giving particulars of the restructure. Separate disclosure must be made for administered and . Entries need not physically have been processed by the date of transfer for an Entity to make the required note disclosure as of that date.
92.2 Non-reciprocal transfers of and resulting from a restructure between:
(a) wholly owned Entities; and/or
(b) departmental and administered classifications,
due to:
(i) an decision;
(ii) an Administrative Arrangements Order (AAO);
(iii) an Act of Parliament or a Regulation under an Act; and/or
(iv) a Written Agreement between the relevant Portfolio Minister(s) and the Finance Minister or the Prime Minister, as appropriate;
are to be treated as contributions by, or distributions to, owners and must be recognised as direct adjustments to equity at their net book value (less any token consideration) immediately prior to transfer. For the purposes of Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities, the cases represented by 92.2(b)(i) to (iv) above are formal designations of transfers as contributions by or distributions to owners.
Transfer of assets as part of, or consequent to, the process of selling an asset are restructures as long as the asset sale is approved by Government.
92.3 The transferee must account for the transfer as a contribution by owners. The transferor must account for the transfer as a distribution to owners.
92.4 Paragraphs 7.4 and 10.6 to 10.9 of AAS 29 Financial Reporting by Government Departments must be complied with by all Entities.
92.5 All other transfers of and from one to another must be treated as giving rise to or in the financial period the transfer occurs.
Part I APPROPRIATIONS
100 Recognition of Appropriations – General Information
100.1 , including , are to be recognised and disclosed, in accordance with this Schedule, regardless of whether the relevant amounts are considered to be in accordance with 12.2.
100.2 Amounts reported in the notes to the for may be rounded to the nearest $1,000. If rounding, amounts less than $500 are rounded to zero.
101 Recognition of Appropriations - Departmental
101.1 Agencies must recognise all departmental as outlined in 101.3.
101.2 ‘Departmental ’ and ‘Departmental non-operating ’ with the exception of loan are non-reciprocal transactions for the purposes of recognition.
101.3 Subject to 101.10, the earliest point of recognition for a departmental appropriation by an is when the gains control of the appropriation for accounting purposes as follows, for:
(a) ‘Departmental ’ and ‘departmental non-operating (excluding loans) specified in the Appropriation Acts at the later of:
(i) Date of Royal Assent of the Appropriation Act; or
(ii) The commencement of the financial period the appropriation relates to. That is, when the appropriation is effective (normally Appropriation Acts No. 1 and No. 2 and Appropriation (Parliamentary Departments) Act No. 1 are effective from 1 July);
(b) ‘Loans’ specified in the Appropriation Acts, when drawn down from the Official Public Account for the amount to be received;
(c) ‘Departmental ’, subject to revenue referred in 120.3, when the obligation for which the exists is incurred to the amount of the obligation;
(d) ‘section 31 of the FMA Act’, for the increased appropriation provided by amounts received that are eligible section 31 receipts, as the is earned (ie on an accrual basis); and
(e) ‘Advance to the Finance Minister’ (for Parliamentary Departments, the Presiding Officer) specified in the Appropriation Acts, the date of the determination.
101.4 Each must ensure they have a valid appropriation for all amounts drawn from the Official Public Account for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the FMA Act, must be recognised and/or disclosed under their valid appropriation, and as required by 104.20.
Measurement
101.5 For ‘departmental output ’ specified in the Appropriation Acts (Part 2), the full amount appropriated is to be recognised as in the year of appropriation, adjusted only by applicable current year formal additions and reductions listed at 101.13.
Departmental Non-Operating Appropriations Specified in Appropriation Acts
101.6 Subject to 101.8, departmental non-operating must be recognised and disclosed at the amounts in the Appropriation Acts, adjusted, where applicable, in accordance with 101.13.
101.7 ‘Equity injections’, ‘loans’ and ‘previous years’ ’ must be recognised in compliance with the following sections for each item. These entries must be adjusted only by applicable current year formal additions and reductions listed at 101.13.
101.8 Equity Injections must be recognised as a contribution by owners, increasing ‘Contributed Equity’ in full from the commencement of the financial year to which the appropriation applies irrespective of when drawn down. Appropriations for equity in Acts passed after the commencement of the period for which the appropriation applies will be recognised from the date of Royal Assent.
101.9 Loan must be recognised as increases in borrowings. They are not .
101.10 Where additional work is requested by Government with funding to follow in the subsequent period, as ‘previous years’ ’, the must book a and an appropriation receivable in the year of agreement for the amount agreed, so long as the transaction is appropriately evidenced. Evidence will include at a minimum, written ministerial agreement. The subsequent appropriation for previous years’ will reduce the appropriation receivable.
101.11 When an transfers cash to the Official Public Account (OPA) in the nature of repayments of amounts drawn down but does not relinquish the right to redraw those amounts, the must account for this by increasing ‘Appropriations Receivable’.
Adjustments to current Year Departmental Appropriations
101.12 Formal additions or reductions to recognition of departmental as outlined in 101.13, occur when an has gained or lost the capacity to control the appropriation. Formal additions or reductions necessitate adjustments to recognition and/or disclosure of to the extent they have not already resulted in adjustments in previous years.
101.13 Departmental for the current year may only be adjusted by formal additions or reductions in the current year in relation to the . 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 . Formal additions and reductions are as follows:
(a) Annual increased by the operation of section 31 of the FMA Act;
(b) transfers of appropriation under section 32 of the FMA Act
(c) other amounts (excluding section 31 of the FMA Act) determined by the Finance Minister (or delegate) or an Minister or Presiding Officer under Part 3 Additions to basic of Appropriation Acts;
(d) reduction of appropriations in accordance with the Appropriation Acts;
(e) adjustments as stipulated by any agreement that provides for additional for over-delivery or a reduction of for under-delivery, such as purchasing, workload or other agreements;
(f) adjustments made as a result of a decision by the Government, for an to provide additional during the current financial period that will be provided for in the subsequent financial period or to provide fewer outputs where the related funding is to be withdrawn; and/or
(g) all other adjustments made as a consequence of a decision of the Cabinet or the Prime Minister.
101.14 The agreements referred to in 101.13 must:
(a) set out one or more quantifiable deliverable(s) and/or a specific amount of appropriation relating to each; and
(b) be approved by, or arise from, Ministerial or cabinet decisions prior to the funding being given.
Equity Returns and Adjustments
101.15 Departmental returns must be recognised as a return of capital by adjusting ‘Contributed Equity’ and not as a reduction in, or refund of, . Departmental returns occur:
(a) where an relinquishes control of funds which had been appropriation in a previous financial year; or
(b) by making a non-reciprocal payment to the Official Public Account other than as a dividend referred to in 41.
Entities shall account for these payments as a reduction in ‘Contributed ’ from the time the return of capital is paid.
101.16 Reductions in ‘Contributed Equity’ under 101.15 are recognised in the of the :
(a) at the date the appropriation amount is reduced as a consequence of Government policy;
(b) at the date of effect of a Ministerial direction;
(c) at the date of the determination reducing a departmental appropriation in accordance with Appropriation Acts; or
(d) at the date that payment is made in all other cases.
Investment of Funds
101.17 Each must recognise and/or disclose all public money invested in authorised investments under section 39 of the FMA Act or surplus funds under section 18 and section 19 of the CAC Act in Table E in 104.23. All money invested under a must also be disclosed in accordance with 120 of this Schedule.
101.18 Where investments are made under an Act of Parliament other than section 39 of the FMA Act, the same format as Table E in 104.23 should be followed. The name of the relevant Act and section under which the investment is made must be noted. The title of the table may be amended, e.g. for Authorities.
102 Recognition of Appropriations - Administered
102.1 Agencies must recognise all administered as outlined below, in the ‘Administered Reconciliation Table’ (refer 85.6). Except for eligible FMA Act section 31 administered receipts, Administered appropriations are not to be recognised as revenue.
102.2 Internal transactions (within the administered ) must not be reported in the schedule of administered income, expense, assets and liabilities but are otherwise disclosed in the .
102.3 The earliest point of recognition for an administered appropriation by an for accounting purposes is as follows, for:
(a) Administered operating items: ‘New Administered Expenses’ and ‘State, ACT, NT and local government items – basic appropriation’ appropriated under Part 2 of Appropriation Acts, when drawn down to an Agency’s bank account for payment against the appropriation;
(b) Administered non‑operating items: ‘Administered assets and liability items – basic appropriations’, when drawn down to an Agency’s bank account for payment against the appropriation;
(c) Administered , when it is drawn down to an Agency’s bank account for payment against the appropriation;
(d) Administered section 31 receipts, that is, the increased appropriation provided by amounts received that are eligible section 31 receipts, as the is earned; and
(e) other amounts determined by the Finance Minister (or delegate) or an Minister or Presiding Officer under ‘Part 2 – Basic appropriation’ or ‘Part 3 Additions to basic ’ of Appropriation Acts, the date stated in the determination, or if there is none stated, then the date of the determination.
102.4 Adjustments to the current year can be made where there has been incorrect treatment of a receipt for section 31 purposes.
102.5 Each must ensure they have a valid appropriation for all amounts drawn from the Official Public Account for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the FMA Act, must be recognised and/or disclosed under their valid appropriation, and as required by 104.20.
103 Recognition of Appropriations – CAC Entities
103.1 CAC Entities (Authorities) are required to report amounts appropriated by Parliament for them through annual or as if those amounts had been appropriated to them directly. Amounts must be reported in line with the treatment identified for Agencies as set out in 101 and 102 where Authorities receive funding under the Appropriation Acts.
103.2 Authorities shall modify the revenues from Government disclosures as required in 101 and 102 to exclude items not applicable (for example under the FMA Act).
103.3 Where an makes a repayment to the OPA, the amount of the repayment is automatically relinquished.
103.4 Each must recognise all investments of surplus money under section 18 and section 19 of the CAC Act or other relevant legislation as per 104.23.
104 Disclosure of Appropriations
104A Disclosure - General
104.1 Entities must make the disclosures in tabular form in the notes to the required for all identified in 101.3, applying to departmental and , pursuant to Tables A to G in subdivision 104B.
104.2 Where the ‘responsible ’ for the appropriation provides drawing rights to another (the agent) to act on its behalf to expend the appropriation, the agent will disclose the information required by Table G in 104.26.
104.3 For , a table must be prepared by Entities for each Act authorising the appropriation in accordance with subdivision 104B or alternatively an can present each as an additional column to the table.
104.4 For , where an has not been drawn on in the current and the previous year, in place of completing the tables in subdivision 104B, an may elect to make an abbreviated disclosure that includes all of the following:
(a) whether the is administered or departmental;
(b) the legislative provision that provides the for the ;
(c) the it is associated with;
(d) the fact that the was not drawn on in the current or previous year; and
(e) for limited , the balance available.
104.5 The ‘responsible ’ is to include the relevant details of its in the following elements of its :
(a) For administered :
(i) administered as part of the schedule of administered items;
(ii) administered and as part of the schedule of administered items;
(iii) administered cash flows as part of the schedule of administered items;
(iv) administered reconciliation table in accordance with 85.6;
(v) appropriation Tables C, D, E and F in subdivision 104B (as appropriate); and
(vi) where applicable, full disclosure of the relationship between the ‘responsible ’ and the paying moneys from the CRF.
(b) For departmental :
(i) departmental and as part of the income statement;
(ii) departmental and as part of the balance sheet;
(iii) departmental cash flows as part of the cash flow statement;
(iv) appropriation Tables C, D, E and F in subdivision 104B (as appropriate); and
(v) where applicable, full disclosure of the relationship between the ‘responsible ’ and the paying moneys from the CRF.
104.6 The amounts shown in the lines of the table for the annual Appropriation Acts (and limited legislation) must be the same as the amounts set out in those Acts.
Appropriation Drawdown Model
(Disclosure Clarification)
104.7 Where there are variances between the cash payments for the reporting period and the amount appropriated, or otherwise authorised, Entities must provide an explanation of those variances below the relevant Table.
104.8 The amounts shown in the lines for the Budget Estimates for unlimited legislation must use the latest estimates from the 2008‑09 budget papers, and be based on an ’s estimate of payments where eligibility is established.
104.9 Special under sections 28 and 39 of the FMA Act are to be reported by the making the payment from the CRF. Additional disclosure is required by Tables D and E in 104.20 and 104.23 respectively.
104.10 Where an , that is not the ‘responsible ’, has paid money out of the Consolidated Revenue Fund (CRF) from a :
(a) the ‘responsible ’ must disclose the name of the to which it has given to act as its agent and apply the reporting requirements outlined at 104.5; and
(b) the that has paid money out of the CRF against a must disclose the name of the ‘responsible ’ and apply the reporting requirements outlined at 104.11.
104.11 An paying moneys out of the CRF on behalf of a ‘responsible ’ against a must include relevant details of the as a separate note in its as follows:
(a) full disclosure of the relationship between the paying from the CRF and each ‘responsible ’; and
(b) for each , the amount of receipts, subsequent payments from the CRF and the resulting balance of any moneys held using Table G in 104.26.
104.12 Where an agent pays money out of the CRF on behalf of the ‘responsible ’, the ‘responsible ’ must ensure that systems and processes are in place to enable appropriate reporting of the .
104.13 must be reported in accordance with 103.2 of this Schedule, not 104.11.
104.14 The availability of any un-drawn non-operating must be disclosed in the notes to the .
104B Appropriations - Tables
104.15 Items in 104.16 and 104.17 must be recorded on a cash basis, except for items marked with an asterisk (*). These items must be reported on an accrual basis.
104.16 The information contained in the following table:
Table A Acquittal of authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations
must be reported for:
(a) Administered expenses; and
(b) Departmental outputs and outcomes.
The sequence and mandatory line items, if applicable, are:
(a) Balance brought forward from previous period (Appropriation Acts)
Appropriation Act:
(b) Appropriation Act (No. 1) 2007‑2008
(c) Appropriation Act (No. 3) 2007‑2008
(d) Appropriation Act (No. 5) 2007‑2008
(e) Other annual appropriation acts
(f) Administered appropriation limited (Appropriation Act section 8)
(g) Reduction of (Appropriation Act section 9)
(h) Advance to the Finance Minister (Appropriation Act section 11)
(i) Comcover receipts (Appropriation Act section 12)
FMA Act:
(j) Refunds credited (FMA Act section 30)
(k) to take account of recoverable GST (FMA Act s30A)
(l) Annotations to ‘net ’/relevant agency receipts (FMA Act section 31)
(m) Adjustment of on change of function ( FMA Act section 32):
(n) Total appropriation available for payments
(o) Cash payments made during the year (GST inclusive)
(p) credited to (GST exclusive)
(q) Balance of authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations and as represented by:
(i) Cash at bank and on hand
(ii) *Departmental receivable
(iii) *Undrawn, unlapsed administered
(iv) Total
104.17 The information contained in the following table:
Table B Acquittal of authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations
Must be reported for:
(a) State, ACT, NT and local government items;
(b) New Administered Expenses related to each Outcome
(c) Equity injections;
(d) Loans;
(e) Previous years’ outputs; and
(f) Administered assets and liabilities.
The sequence and mandatory line items, if applicable, are:
(a) Balance brought forward from previous period (Appropriation Acts)
Appropriation Act:
(b) Appropriation Act (No. 2) 2007-2008
(c) Appropriation Act (No. 4) 2007-2008
(d) Appropriation Act (No .6) 2007-2008
(e) Other annual appropriation acts
(f) Administered appropriation limited (Appropriation Act sections 7&8)
(g) Reduction of (Appropriation Act section 11):
(h) Advance to the Finance Minister (Appropriation Act section 12))
FMA Act:
(i) Refunds credited (FMA Act section 30)
(j) to take account of recoverable GST (FMA Act s30A)
(k) Adjustment of on change of function ( FMA Act section 32):
(l) Total available for payments
(m) Cash payments made during the year (GST inclusive)
(n) credited to (GST exclusive)
(o) Balance of authority to Draw Cash from the Consolidated Revenue Fund for Other Than Ordinary Annual Services Appropriations and as represented by:
(i) Cash at bank and on hand
(ii) *Appropriation receivable
(iii) *Undrawn, unlapsed administered
(iv) Total
104.18 Entities must report the information contained in the following table:
Table C Acquittal of authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount)
(a) Particulars of legislation providing appropriation (including purpose):
(i) Cash payments made during the year
(ii) credited to
(iii) Refunds credited (net) (FMA Act section 30)
(iv) Total charged to appropriation
(v) Estimated actual
104.19 Entities must disclose separately in Table C (section 104.18) for each Act, current as at reporting date. Entities must disclose, in the heading or by way of footnote:
(a) whether the is administered or departmental; and
(b) the outcome with which it is associated.
Entities must disclose all unlimited in this format, excluding those unlimited required to be disclosed under Tables D and E in 104.20 and 104.23 respectively.
104.20 Entities must report the information contained in the following table:
Table D Acquittal of authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Refund Provisions)
(a) Particulars of legislation providing appropriation (including purpose):
(i) Cash payments made during the year
(ii) credited to
(iii) Refunds received (net) (FMA Act section 30)
(iv) Total charged to
(v) Budget Estimate (listing each other legislative provision that refunds have been made under)
(vi) Budget Estimate (FMA Act section 28)
104.21 Where an has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid, that may make the following statement in the notes to their , in place of disclosing Table D in 104.20: “For the periods 2006-07 and 2007-08, () has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid.”
104.22 If the has made repayments using section 28 of the FMA Act or any other legislative provision for repayments required or permitted under law, the must disclose the aggregate of all those transactions in line 1 Cash payments made during the year, Table D in 104.20.
104.23 Entities must report the information contained in the following table:
Table E Acquittal of authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (section 39 of the FMA Act)
(a) Amount invested brought forward from previous period
(b) Prior year investments redeemed in current year
(c) Investments made during the year
(d) Redemptions of current year investments (gross)
(e) Amount invested carried to the next period (sum of above)
(f) Budget Estimate
104.24 Where an has a delegation but has not used section 39 of the FMA Act, that may make the following statement in place of disclosing Table E in 104.23: “For the periods 2006‑07 and 2007‑08, () has not used section 39 of the FMA Act.”
104.25 The information contained in the following table:
Table F Acquittal of authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount)
must be reported by Appropriation type, on a cash basis, except for items marked with an asterisk (*) which must be reported on an accrual basis:
(a) Particulars of legislation providing appropriation (including purpose):
(i) Amount brought forward from previous period
(ii) for reporting period
(iii) to take account of recoverable GST (FMA Act section 30A)
(iv) Available for payments
(v) Cash payments made during the year (GST inclusive)
(vi) credited to
(vii) lapsed
(viii) Amount available carried to the next period and as represented by:
· Cash
· *Departmental receivable
· *Undrawn, unlapsed administered
(ix) Total
104.26 The information contained in the following table:
Table G Disclosure by agent in relation to Special Appropriations
must be reported for departmental and by responsible :
(a) Name of legislation providing the appropriation:
(i) Total receipts
(ii) Total payments
(iii) Balance of receipts and payments for departmental, and for administered, for each responsible
Part J OTHER DISCLOSURES
120 Special Accounts
120.1 Entities must disclose information on in accordance with this Schedule for departmental and , regardless of whether the relevant amounts are considered to be im.
120.2 Amounts disclosed in this Division are to be rounded either to the nearest dollar or the nearest $1,000, in accordance with section 13.2.
120.3 Amounts deposited in a from external parties must be recognised when the controls the funding as income/assets. These amounts are to be recognised on an accrual basis. The is also reflected in the ’s departmental or administered as appropriate.
120.4 Transfers of departmental to a departmental , or administered appropriation to an administered are not recognised/disclosed in the financial statements, but are an internal transfer.
120.5 Entities must make the disclosures as required in 120.6 on a cash basis. Entities can disclose each in a separate Table or each as a new column to Table A.
120.6 Entities must report the information contained in the following table in relation to Special Accounts:
Table A Special Accounts
(a) Balance brought forward from previous period
(b) Appropriation for reporting period
(c) Costs recovered
(d) GST credits (FMA Act FMA Act section 30A)
(e) Realised investments
(f) Other receipts
(g) Total Credits
(h) Available for payments
(i) Payments made
(j) Repayments debited from the Special Account
(k) Investments debited from the (FMA Act section 39)
(l) Total Debits
(m) Balance carried to the next period (excluding investment balances – refer Table B) and as represented by:
(i) Cash – transferred to the Official Public Account
(ii) Cash – held by the ;
(n) Total balance carried to the next period
120.7 Entities must report the information contained in the following table in relation to Special Accounts investment of public money:
Table B Special Accounts Investment of Public Money
(a) Full official title of : Investment of Public Money under section 39 of the FMA Act
(b) Opening balance
(c) Investments made:
(i) From Special Account
(ii) Other
(d) Investment income
(e) Transaction charges
(f) Investments realised
(g) Closing Balance
120.8 must not have a debit balance (on a cash basis) at any point. The balance represents the amount held in the Consolidated Revenue Fund (CRF). Investments made through the are generally external to the CRF and while the amounts stand to the credit of the , they are not included in the balance for the purposes of disclosing in Table A Special Accounts.
120.9 that have been determined as pursuant to Order 6.2.1 of the Financial Management and Accountability Orders 1997 are required to comply with 7.1 of this Schedule and prepare separate financial statements.
120.10 Entities that have that have not been used during the current year and comparative year, regardless of whether they have a nil or positive balances, may make the following disclosures in the notes to the instead of preparing Tables A and B:
(a) the ’s title;
(b) whether the account is administered, departmental or in nature;
(c) the purpose of the ;
(d) the under which the was established;
(e) a statement noting the has not been used during the current year and comparative year; and
(f) the ’s balance.
120.11 Entities that invest amounts standing to the credit of a must include an overview of the investment policy used.
120.12 Where investments are made under an Act of Parliament other than section 39 of the FMA Act, the same format as Table B in 120.7 should be followed. The name of the relevant Act and section under which the investment is made must be noted.
120.13 Entities must report moneys subject to trust law that stand to the credit of a adjacent to the special account disclosure.
121 Reporting of Outcomes and Outputs
121.1 Entities in the must disclose and related to departmental and in accordance with this Schedule.
121.2 Amounts disclosed in this Division are to be rounded either to the nearest dollar or the nearest $1,000 in accordance with Division 13.
121.3 Outcome and output amounts disclosed must be net of refunds and adjustments.
121.4 The information in the following table:
Table A Net Cost of Outcome Delivery
must be disclosed by Entities in the by Outcome, for departmental and :
(a) Expenses
(i) Administered
(ii) Departmental
(iii) Total Expenses
(b) Costs recovered
(i) Administered
(ii) Departmental
(iii) Total Costs Recovered
(c) Other external
(i) Administered
(ii) Departmental
(iii) Total Other External Income
(d) Net /(contribution) of outcome
121.5 The information in the following table:
Table B Major Departmental Income and Expenses by Output Groups and Outputs
must be disclosed by Entities in the by Output, Group and Outcome:
(a) Departmental
(b) Show each relevant major class
(c) Total departmental
As funded by:
(d) Show each relevant major class of
(e) Total departmental
121.6 The information in the following table:
Table C Major Classes of Administered Income and Expenses by Outcome
must be disclosed by Entities in the by Outcome:
(a) Administered
(b) Show each relevant major class
(c) Total Administered Income
(d) Administered Expenses
(e) Show each relevant major class
(f) Total Administered Expenses
121.7 Entities must attribute shared items using a basis that most accurately allocates the total or to each output or outcome. If this basis differs from that used in preparing the Budget, additional disclosure must be included to explain the variation.
121.8 The attribution method used to apportion shared items must be reliable and must be disclosed in the text accompanying the tables (see AAS 29 paragraph 12.7).
121.9 Where an output or outcome changes during the year, Entities must:
(a) match the changed output or outcome to accord with the adjusted output or outcome arrangements approved through the portfolio additional estimates process and published in an Appropriation Act; and
(b) apportion the amounts disclosed between the new and former or , so that Entities report against the original or up to the date of the change and against the revised or after that date.
121.10 are to be as specified in the Appropriation Acts relevant to the
121.11 The amounts in the total column for in Table A Net Cost of Outcome Delivery must agree to the ’s income statement and the amounts in the total column for must agree to the ’s totals in the schedule of administered items for all relevant Tables.
121.12 Entities must disclose the nature of other external in Table A Net Cost of Outcome Delivery by major class. Where these include intra- or inter- Government charges, such charges must be shown separately.
122 Compensation and Debt Relief in Special Circumstances
122.1 The must include a note to the showing departmental and administered and/or including nil and immaterial balances, as relevant to the , in relation to each of the following:
(a) Act of Grace payments made under subsection 33(1) of the FMA Act as approved by the Finance Minister (or delegate);
(b) waivers of amounts owing to the , (being amounts that the would, but for the waiver, have been entitled to receive on behalf of the );
(i) pursuant to subsection 34(1) of the FMA Act; and
(ii) pursuant to other legislation, which must be specified;
(c) payments made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme;
(d) payments made under approved ex-gratia programmes, the nature of which must be identified; and
(e) payments made in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act).
122.2 The note must disclose:
(a) the number of cases and total amount expensed during the reporting period under each of these mechanisms specified. In addition, where any of the Act of Grace cases expensed during the reporting period include periodical payments for specified periods (paragraph 33(1)(b) of the FMA Act refers), the note must separately identify the number of such cases and the total amount expensed in relation to those cases.
(b) the number and aggregate present value amount of those cases relating to any provisions at the end of the reporting period under each of these mechanisms specified. This requirement is particularly relevant where cases under the Act of Grace mechanism include periodical payments for specified periods past the reporting date, but may also apply to any of the other mechanisms in particular circumstances.
ANNEXURE A – FORMS OF FINANCIAL STATEMENTS
Introduction
A.1 The Forms of Financial Statements (Forms) set out the prescriptive content, layout, and formatting requirements for all Entities in compiling and presenting their 2007‑08 annual financial statements in compliance with Schedule 1 and the Australian Accounting Standards and associated authoritative requirements. The Forms have been designed to meet common disclosure requirements of Agencies and Authorities respectively and therefore do not address all disclosure requirements.
Application
A.2 Entities are required to present all disclosures necessary to give a true and fair view of their results and financial position. Entities are permitted:
(a) to include further disclosures as they deem appropriate to meet their stakeholders’ information needs and be reflective of their operations including those that are required by Accounting Standards addressed in A.3 as applicable;
(b) not to include components of the Forms that are not relevant to their operations or where no activity in either the current or previous financial year has taken place;
(c) to alter or amend the numbering of notes but not their sequencing within the presentation of the financial statements as set out within the Forms except where amendments permitted under (a), and (b) above require such components of the Forms to be inserted, deleted or added, and to ensure the contextual and logical flow of information for stakeholders;
(d) to aggregate line items that are not significant in understanding the entity’s operations; 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, so that it appropriately discloses the Entity’s accounting policies.
A.3 Entities should be aware that disclosure requirements for the following Standards, legislation and reporting requirements have not been incorporated into the Forms and where relevant must be included in the financial statements of the Entity.
Standards, legislation and reporting requirements not addressed include:
· Corporations Act 2001
· AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards
· AASB 2 Share-based payment
· AASB 3 Business Combinations
· AASB 4 Insurance Contracts
· AASB 6 Exploration for and Evaluation of Mineral Resources
· AASB 8 Operating Segments
· AASB 114 Segment Reporting
· AASB 112 Income Taxes with respect to tax effect accounting
· AASB 119 Employee Benefits with respect to defined benefit post employment fund disclosures
· AASB 120 Accounting for Government Grants and Disclosure of Government Assistance
· AASB 124 Related Party Disclosures
· AASB 129 Financial Reporting in Hyperinflationary Economies
· AASB 133 Earnings per Share
· AASB 134 Interim Financial Reporting
· AASB 139 Financial Instruments: Recognition and Measurement with respect to hedge accounting
· AASB 141 Agriculture
· AASB 1023 General Insurance Contracts
· AASB 1038 Life Insurance Contracts
· AASB 1039 Concise Financial Reports
· AASB 1049 Whole of Government and General Government Sector Reporting
· AAS 25 Financial Reporting by Superannuation Plans
This listing is not exhaustive. Compliance with these additional disclosures is required where appropriate to present a true and fair view.
Inclusions here:
Forms of Financial Statements for:
· Not for Profit FMA and CAC; and
· For Profit
