Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2006)
I, NICK MINCHIN, Minister for Finance and Administration, make these Orders under subsection 48 (1) of the Commonwealth Authorities and Companies Act 1997.
Dated 19 December 2006
Nick Minchin
Minister for Finance and Administration
1 Name of Orders
These Orders are the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2006).
Notes:
· These Orders are in relation to preparation of financial statements.
· Other matters relating to Commonwealth Authorities are dealt with in other Orders made by the Minister under subsection 48 (1) of the Commonwealth Authorities and Companies Act 1997.
2 Commencement
These Orders commence on 1 July 2006.
3 Financial statements for reporting periods ending on or after 1 July 2006
Schedule 1 sets out the requirements for the preparation of annual financial statements for the reporting periods ending on or after 1 July 2006 for:
(a) sub item 2(1) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997;
(b) subsection 19(3) of the Anglo-Australian Telescope Agreement Act 1970;
(c) subsection 47(1) of the High Court of Australia Act 1979;
(d) subsection 43(3) of the Natural Heritage Trust of Australia Act 1997; and
(e) subsection 32(a)of the Albury-Wodonga Development Act 1973;
Note:
· Schedule 1 is identical to Schedule 1 to the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2006). The purpose of having identical requirements is to achieve uniformity in financial reporting across the Australian Government public sector which will assist in the preparation of annual financial statements in relation to the Australian Government by the Finance Minister under section 55 of the Financial Management and Accountability Act 1997. Accordingly, certain terms, requirements and references contained in Schedule 1 to these Orders apply to Commonwealth Authorities and not to Agencies while other terms, requirements and references apply to Agencies and not to Commonwealth Authorities.
Schedule 1 Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2006.
Requirements AND GUIDANCE for the preparation of Financial REPORTS of AUSTRALIAN GOVERNMENT entities
FOR REPORTING PERIODS ENDING ON OR AFTER 1 JULY 2006
ACCOUNTING POLICY BRANCH
FINANCIAL REPORTING AND CASH MANAGEMENT DIVISION
FINANCIAL MANAGEMENT GROUP
CONTENTS
Part A INTRODUCTION.. 5
1 Legislative Authority. 5
2 Structure. 7
3 Further Information. 8
Part B DEFINITIONS AND ABBREVIATIONS. 9
4 Dictionary. 9
5 Abbreviations. 18
Part C APPLICATION AND PRESENTATION OF FINANCIAL REPORTS. 20
6 Commencement 20
7 Applicable Entities. 20
8 Authoritative Requirements. 20
9 Financial Reporting Structure and Form.. 21
10 Simplified Reporting. 22
10A Presentation of Primary Financial Statements. 22
10B Notes to the financial statements. 22
11 Early Adoption of Accounting Pronouncements. 22
12 Materiality and Information Disclosure. 23
13 Rounding Off 23
14 Certificates. 24
15 Departmental and Administered Items: Classification and Reporting. 25
16 Exemptions from this Schedule. 25
17 Approved Exemptions. 25
Part D SPECIFIC REPORTING REQUIREMENTS – INCOME STATEMENT (Excluding Appropriations) 27
18 Income – General Information (excluding Appropriations) 27
19 Expenses – General Information. 27
20 Borrowing Costs. 27
21 Operating Leases. 27
22 Director/Executive Remuneration. 28
23 Remuneration of Auditors. 30
24 Competitive Neutrality. 30
Part E SPECIFIC REPORTING REQUIREMENTS – BALANCE SHEET.. 31
30 Financial Assets – General Information. 31
31 Receivables for Statutory Charges. 31
32 Investment of Surplus Money by Authorities. 31
33 Valuation of Non-Financial Assets. 31
34 Impairment of Non-Financial Assets. 32
35 Analysis of Non-Financial Assets. 33
36 Restricted Assets. 33
37 Heritage and Cultural Assets. 33
38 Assets Held in Trust 34
40 Liabilities – General Information. 35
41 Liabilities Relating to Dividends. 35
42 Provisions. 35
43 Employee Benefits. 35
43A Employee Benefits Disclosures. 35
43B Annual and Long Service Leave. 36
44 Measurement and Disclosure of Post Employment Plans. 36
45 Financial Instruments. 37
Part F SPECIFIC REPORTING REQUIREMENTS – OTHER FACE STATEMENTS AND SCHEDULES. 38
50 Statement of Changes in Equity. 38
60 Cash Flow Statement 38
75 Schedule of Administered Items. 38
80 Contingencies. 38
80A Schedule of Contingencies. 38
80B Contingent Liabilities. 39
80C Contingent Assets. 39
81 Commitments. 39
Part G SPECIFIC FINANCIAL REPORTING REQUIREMENTS – ADMINISTERED REPORTING 40
85 Administered Reporting – General Information. 40
86 Income and Expenses Administered On Behalf of Government 41
87 Administered Investments. 41
88 Administered Investments Held for Sale. 42
89 Impairment of Administered Assets. 42
90 Liabilities Administered on Behalf of the Government 43
Part H SPECIFIC REPORTING REQUIREMENTS – RESTRUCTURES. 43
92 Restructures. 43
Part I SPECIFIC REPORTING REQUIREMENTS – APPROPRIATIONS. 44
100 Recognition of Appropriations – General Information. 44
101 Recognition of Appropriations - Departmental 44
101A Measurement 45
101B Equity Returns and Adjustments. 47
101C Investment of Public Money. 47
102 Recognition of Appropriations - Administered. 47
103 Recognition of Appropriations – CAC Entities. 48
104 Disclosure of Appropriations. 49
104A Disclosure - General 49
104B Appropriations Tables. 52
Part J SPECIFIC REPORTING REQUIREMENTS – OTHER DISCLOSURES. 56
120 Special Accounts. 56
21 Reporting of Outcomes and Outputs. 58
122 Compensation and Debt Relief in Special Circumstances. 60
ANNEXURE A – PRIMA.. 62
Introduction. 62
Application. 62
Part A INTRODUCTION
1 Legislative Authority
This document is relevant to all reporting Entities covered by:
· s49 of the Financial Management and Accountability Act 1997; or
· Clause 2 of Schedule 1, to the Commonwealth Authorities and Companies Act 1997.
The Schedule, policy and guidance contained in this document apply to all financial reporting periods ending on or after 1 July 2006, until withdrawn or replaced.
The Minister for Finance and Administration (Finance Minister) makes:
· the Financial Management and Accountability Orders 2005 under subsection 63(1) of the Financial Management and Accountability Act 1997 (FMA Act); and
· the Commonwealth Authorities and Companies Orders (Financial Statements for periods ended on or after 1 July 2006) under subsection 48(1) of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
These Orders include a Schedule 1, which sets out the actual reporting requirements, part of the applicable Financial Reporting Framework for Reporting Entities. Schedule 1 comprises the black letter of this document.
The applicable Financial Reporting Framework for Reporting Entities also comprises and requires Entities to:
(a) comply with:
(i) applicable accounting standards and accounting interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period;
(ii) policies issued by the Department of Finance and Administration;
(iii) Commonwealth Authorities and Companies (Report of Operations) Orders 2005 (does not apply to FMA Agencies); and
(b) have regard to:
(i) guidance to Schedule 1 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 the Department of Finance and Administration.
Where a choice of accounting policy is required to be made that is not covered by these Finance Minister’s Orders, Australian Accounting Standards, AASB Interpretations or other Framework documents, the treatment under Government Finance Statistics (GFS) must be considered.
The purpose of having identical requirements for Government Entities is to achieve uniformity in financial reporting and assist in the preparation of the Australian Government as required under s55 of the FMA Act.
The Department of Finance and Administration (Finance) publishes this document, Requirements and Guidance for the Preparation of Financial Reports of Entities, which includes the ‘Finance Minister’s Orders’ for reporting periods ending on or after 1 July 2006, commonly known as the FMOs (ie Schedule 1 to the Orders above), related policy and guidance. These Finance Minister’s Orders replace previously published Finance Minister’s Orders.
2 Structure
In this document the black letter legislation (i.e. text in bold):
constitutes Schedule 1 to the Orders made under the respective FMA and CAC legislation;
are mandatory principles, bases or rules made by the Finance Minister for preparing and presenting general-purpose of Entities;
clarify accounting treatments in Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board or legislation applicable to Whole-of-Government application; and
specify the accounting treatments to be applied when the Accounting Standards or legislation permit choice.
The policies including Annexure A (PRIMA) (ie text in grey letter):
are presciptive principles, bases or rules that support the subordinate legislation (ie in the black letter) made by the Finance Minister for preparing and presenting general-purpose of Entities; and
· do not form part of Schedule 1.
The guidance (i.e. text that appears within boxes with green background):
provides explanatory guidance which does not form part of Schedule 1;
is intended to assist in interpretation of the black letter and policy; and
may be modified from time to time by Finance as the need arises (for example, in response to requests by Entities for further clarification of particular black letter or policy clauses).
Policies and Guidance to this Schedule are subject to change by the Department of Finance and Administration as and when these changes are required.
The following numbering conventions are used within this document:
Major sections are parts, denoted by an upper case letter, eg A, B, C.
Other sections are divisions, noted by a number, commencing at 1. Divisions are not always numbered consecutively, to allow for additional divisions at a future date.
Paragraphs of black letter (in each division) commence at .1
Paragraphs of policy commence at .51 followed by uppercase letter ‘P’.
Paragraphs of guidance commence at .71 followed by uppercase letter ‘G’.
Paragraphs are referred to as ‘Sections’.
3 Further Information
(Schedule 1 contains no black letter requirements in this Division)
Part B DEFINITIONS AND ABBREVIATIONS
4 Dictionary
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 Government and signed by the Governor-General. The AAOs establish the principal matters or Government to be dealt with by each Department of State, and the Acts of Parliament to be administered by each portfolio 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 for classification decision-points.
AEIFRS
Australian Equivalents to International Financial Reporting Standards (Australian Accounting Standards and AASB Interpretations).
Agency
An Agency is as defined in s5 of the Financial Management and Accountability Act 1997. 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)
Appropriations
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
Is 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. Refer to AEIFRS.
Authority
A Commonwealth authority as defined in s7 of the
Commonwealth Authorities and Companies Act 1997. Also referred to in these Finance Minister’s Orders as ‘CAC Entity’.
Business Activity/ies
Refer to Business Operation/s.
Business Operation/s
Function or functions within an Agency that have been determined to be a Business Operation pursuant to 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) is the annual, end-of-year prepared under s55 of the Financial Management and Accountability Act 1997, and in accordance with Australian Accounting Standards, including AAS 31 Financial Reporting by Governments. The CFS shows 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 used in the operational activities of the Entity. Refer to for classification decision points.
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)
Draw Down
An authorised transmission (draw down) 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 Agency and and the economic , comprising the or and its subsidiaries; and each activity or activities of an which is/are determined to be a Business Operation.
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)
External Revenues
Revenues not recovered directly from the provision of goods and services, attributed directly to .
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 the Department of Finance and Administration.
Finance Chief Executive
Secretary to the Department of Finance and Administration.
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
Includes:
(a) the 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 and the Policy and Guidance to the Schedule must be taken to have the same meaning as the term ‘’ applied in the FMA Act and CAC Act.
Financial Statements
Other than for the purposes of the FMA Act and CAC Act where ‘financial statements’ is used to mean ‘’, for the purposes of these FMOs ‘financial statements’ has the meaning of the primary (financial) statements defined in this Schedule.
For-Profit Entities
Any that does not meet the definition of a not-for-profit .
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
Refer Australian Government.
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.
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.
(Framework for the Preparation and Presentation of Financial Statements para. 70 (a))
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 merely that the has the ability and intention to maintain the asset indefinitely in 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 expect 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 .
(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 that 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. Actual outcomes are the results or impacts actually achieved. Where an outcome is long-term in nature, identifying intermediate outcomes (shorter-term impacts) will assist focus and measurability.
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.
Preservation
Work performed to maintain an item in its existing state.
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.
Related Entity Transactions
For the purposes of the budget estimates, monthly reports and the Final Budget Outcome report, this term relates to any transactions between Agencies in the .
For the purposes of the , this term relates to any transactions between Agencies in the public sector.
Reimbursement
To make repayment to a party for expense or loss incurred.
Remote
Very unlikely.
Remuneration
Refer to Employee Benefits.
(AASB 119 para. 7)
Reserves
Are items and include:
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 s20 and s21). 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 do not require annual authorisation by the Parliament as they do not lapse at the end of the financial year.
Special Public Money
Public money that is not held on account of the Commonwealth or for the benefit of the Commonwealth
(FMA Act s16). It includes:
a) money held by the in a trustee capacity;
b) is money in the custody of the and is ‘public money’ for the purposes of the FMA Act;
c) is ordinarily held in established by legislation or Finance Minister Determinations.
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
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
CN
Competitive Neutrality
CRF
Consolidated Revenue Fund
ED
Exposure draft for a proposed Accounting Standard issued by the AASB
Finance
Department of Finance and Administration
FMA Act
The Financial Management and Accountability Act 1997.
FMOs
The Financial Management and Accountability Orders (Financial Statements for reporting periods ended on or after 1 July 2006), this Schedule 1 to the Financial Management and Accountability Orders 2005, made by the Finance Minister under the authority of s63 of the Financial Management and Accountability Act 1997 and this Schedule 1 to the Commonwealth Authorities and Companies Orders (Financial Statements for periods ended on or after 1 July 2006), made by the Finance Minister under the authority of s48 of the Commonwealth Authorities and Companies Act 1997
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 Urgent Issues Group or UIG)
OPA
Official Public Account
PFC
Public Financial Corporation
PNFC
Public Non-Financial Corporation
PRIMA
Primary Reporting and Information Management Aid (Annexure A to this Schedule)
PS Act
Public Service Act 1999
SAC
Statements of Accounting Concepts issued by the AASB (or predecessor)
TER
Tax Equivalent Regime
UIG
Refer ‘Int’
Part C APPLICATION AND PRESENTATION OF FINANCIAL REPORTS
6 Commencement
6.1 Subject to Section , the requirements of this Schedule and policies to the Schedule, including PRIMA Annexure, apply to prepared for reporting periods ending on or after 1 July 2006. These requirements replace the Finance Minister´s Orders for financial statements for reporting periods ending on or after 1 July 2005 and other previously published Finance Minister’s Orders.
6.2 For Entities that cease to exist on or after 1 July 2006, the financial reporting requirements set out in this Schedule shall apply.
7 Applicable Entities
7.1 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 Section , Entities are to apply the provisions in this Schedule.
8.2 Subject to Section , 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 1 to the Financial Management and Accountability Orders 2005 and Commonwealth Authorities and Companies Orders (Financial Statements for periods ended on or after 1 July 2006) comprising the black letter, as well as supporting policies including the Primary Reporting and Information Management Aid (PRIMA) and other policies issued by the Department of Finance and Administration;
(ii) applicable accounting standards and accounting interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and
(iii)Commonwealth Authorities and Companies (Report of Operations) Orders 2005 (does not apply to FMA Agencies); and
(b) have regard to:
(i) guidance to this Schedule 1 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 the Department of Finance and Administration.
9 Financial Reporting Structure and Form
9.1 The of each must be presented in the following order:
(a) statement required by Sections or of this Schedule;
(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.
9.2 The of each must include:
(a) the primary statements, schedules and notes in the form prescribed in Annexure A (PRIMA) to this Schedule; and
(b) all note disclosures specified by black letter in this Schedule and outlined in Annexure A (PRIMA) to this Schedule; and
(c) be presented in the English language and Australian dollars.
9.3 Unless specifically otherwise stated as not required in this Schedule or in an accounting standard, comparative information must be disclosed in the and notes in compliance with the requirements of this Schedule.
9.4 This Schedule and supporting policy and guidance apply to departmental as well as administered items unless otherwise specified.
9.5 Entities must include sub-total columns in Annexure A (PRIMA) tables as required to reconcile to line items on the face of the Balance Sheet. Additional total and sub-total rows and columns may be included to present information required by Australian Accounting Standards or improve the understandability of the .
9.6 Where zero balances occur, the line item may be omitted, except for balances that relate to the following items:
· Appropriations under ;
· Special Accounts under ;
· Compensation and Debt Relief disclosures under ; and
· Remuneration of Auditors under .
10 Simplified Reporting
10.1 Entities may adopt the simplified reporting provisions set out in Sections to having regard to Section and the order of information outlined in Annexure A (PRIMA).
10A 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 , unless this is required in conjunction with the presentation of other information.
10B 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 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.
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 ; or
(b) affect the discharge of accountability by management or the governing body of the .
12.3 Entities must prepare 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 If there is more than one change in the application of accounting policies for departmental or administered items defined in , Entities are required to make a separate disclosure for each accounting policy application.
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 $500 or less, 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 $500,000 or less, 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 .
13.3 Rounding may be applied differently between Departmental and Administered reporting. However, with the exception of appropriations, outcomes and Special Accounts disclosures, rounding must be applied consistently within Departmental items and within Administered items respectively.
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 opinion on the must be attached to the .
14.2 Each economic , comprising an Authority or an and its subsidiaries’ as applicable, must present a statement signed by the Chair of the Board (or a Director) in accordance with a resolution of the Board 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 financial institutions which apply AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions 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 Section where applicable, then the reasons for forming this view and the location of the additional notes in the .
(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 Section required to prepare a 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 Section as applicable, then the reasons for forming this view and the location of the additional notes in the ; 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 , Entities must classify and distinguish items as ‘departmental’ or ‘administered’ in the for all disclosures outlined in this Schedule.
15.2 Subject to a reclassification by the Finance Minister of an item, an amount explicitly described in an Act (including an annual Appropriation Act) as being ‘departmental’ or ‘administered’, is classified for the purposes of the as described in the Act.
15.3 All amounts appropriated as State, ACT, NT and local government items (Specific Payments to the States and Territories) in the annual Appropriation Acts are to be classified as administered items for reporting purposes in the Financial Report.
15.4 Other than as provided in Sections and , all items will be classified as ‘departmental’ or ‘administered’ according to the following rules:
(a) ‘’ are those which the controls that are applied to the production of the ’s own ; and
(b) ‘Administered items’ are those that the does not control and which are subject to prescriptive rules or conditions established by legislation or Policy, in order to achieve .
15.5 Trust money is neither departmental nor administered. Specific reporting requirements apply in relation to trust moneys (refer to 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 granted under Section 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 this Schedule and applied by the Entity in the Financial Report.
17 Approved Exemptions
17.1 Certain limited exemptions apply to Entities as specified in Sections in this Schedule. These limited exemptions are summarised in Sections to .
17.2 Section constitutes an approved exemption for a for-profit or an , that is a university to elect not to apply the requirements at Sections , , and relating to valuation of non-financial assets.
17.3 Section approves an exemption to from making disclosures under , however these Entities are required to make the necessary disclosures in accordance with AASB 124 Related Party Disclosures.
17.4 Public Financial Corporations (PFCs), (GBEs) and Air Services Australia can only apply either the direct to equity or direct to income approach outlined in AASB 119 Employee Benefits to recognise actuarial gains and losses for defined benefit plans. All other Entities are to apply the “direct to retained earnings” option of recognising actuarial gains and losses for defined benefit plans. This is applicable to departmental items only.
17.5 The Australian Office of Financial Management (AOFM) is excluded from the requirement to present a ‘Schedule of Income Administered on Behalf of Government’, a ‘Schedule of Expenses Administered on Behalf of Government’ and associated disclosures in Annexure A (PRIMA) in accordance with Section of this Schedule. However, AOFM must instead adhere to the Income Statement reporting requirements of AASB 101 Presentation of Financial Statements.
17.6 In accordance with Section , Intelligence and Security Agencies, Defence Agencies and Prescribed Law Enforcement Agencies are exempt from making disclosures under of this Schedule.
17.7 The Reserve Bank of Australia is not required to prepare a Financial Report in the format prescribed by Annexure A (PRIMA) to this Schedule. The Reserve Bank of Australia may instead comply with AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions in preparing .
17.8 The Future Fund Management Agency and Board of Guardians (also known as the Future Fund) is allowed to present within its Financial Report a combined Income Statement and Balance Sheet representing its administered and departmental items for the period. The Future Fund may also present additional Statements and/or notes on the same basis within its Financial Report. Inter-entity transactions between its administered and departmental accounts are to be eliminated in the combined Statements and other necessary adjustments to align accounting policies are to be made. Where this option is employed the Future Fund must continue to present the Financial Statements required by these FMOs in addition to the combined disclosure.
Part D SPECIFIC REPORTING REQUIREMENTS – INCOME STATEMENT (Excluding Appropriations)
18 Income – General Information (excluding Appropriations)
18.1 Subject to Section , Entities must recognise in compliance with Australian Accounting Standards.
18.2 disclosures must be made in accordance with Sections
to of this Schedule.
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 cannot be recognised on a straight-line basis but must be recognised by Entities as in the period in which they are incurred.
22 Director/Executive Remuneration
22.1 must disclose Directors’ and Executive in compliance with this Section. are exempt from making these disclosures where they make disclosures required by AASB 124 Related Party Disclosures.
22.2 Subject to Section , the following information must be disclosed in the notes to the in regard to the of Senior Executives of an or :
(a) the aggregate of all Senior Executives of the whose for the financial year is $130,000 or more respectively including of Senior Executives seconded to the ; and
(b) the number of managers of the whose total respectively for the financial year falls within each successive $15,000 band, commencing at $130,000;
being received or due and receivable, directly or indirectly, from the or any related party of the in connection with the management of the affairs of the or any of its subsidiaries, whether as a Senior Executive or otherwise.
22.3 Subject to Section , the following must be disclosed in the notes to the of an :
(a) the number of Directors of the including those seconded to the , whose total derived from the respectively for the financial year in connection with the management of the affairs of the or its subsidiaries, whether as a Director or otherwise, falls within each band of $15,000;
(b) the total of the referred to in paragraph (a) of all Directors referred to in that paragraph; and
(c) the must include in a note the total of the of all Directors of each in the economic , comprising the and its subsidiaries, for the financial year.
22.4 Subject to Section , the following information must be disclosed in the notes to the of an economic where an or is the parent of the economic :
(a) the aggregate of all Senior Executives and Directors of the economic whose for the financial year is $130,000 or more respectively including those seconded to the ; and
(b) the number of Senior Executives or Directors of the economic undertaking key management roles whose total respectively for the financial year falls within each successive $15,000 band, commencing at $130,000;
This is to include received, or due and receivable, directly or indirectly in connection with the management of the affairs of an forming part of the overall economic .
22.5 Where a Director of an is also a Senior Executive, is to be disclosed for the individual as if they were a Director only, for the period of Directorship.
22.6 Individuals who work only part of the year and for a period less than 6 months contiguously as Senior Executives are not to be included if they do not reach the $130,000 limit despite their annual being greater than $130,000. Directors’ is only to be included for the period of directorship.
22.7 With regard to Sections , , and , individuals who are promoted to the position of a Senior Executive or Director of an within a financial year are only to be included in the Entity’s Executive disclosure where the aggregate amount of the individual’s as a Senior Executive or Director is equal to, or in excess of $130,000. All other paid to the individual prior to their promotion to the position of Senior Executive or appointment as a Director of the must not be incorporated into calculations for the purpose of Executive disclosure.
22.8 The aggregate amount of separation and for Senior Executives must be disclosed separately from other benefits.
22.9 With regard to Sections to of this Schedule, both the directly employing the Senior Executive or Director, and the to whom the Senior Executive or Director is seconded must disclose the amount of of the Senior Executive or Director who is the subject of the secondment arrangement. 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, as applicable, make a statement to the effect that amounts disclosed are included as receipt of goods or services from another Government .
22.10 The of Star ranked military officers must be disclosed, including any period of secondment or deployment domestically or overseas, so as to comply with Sections , , , , and .
22.11 Subject to Section , an that is party to a fee for services 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 .
22.12 Where an engages a Senior Executive or Director on a fee for services arrangement as set out in Section , and then provides the services of the Senior Executive or Director to a third party on a basis, the recipient must disclose the benefit received as .
23 Remuneration of Auditors
23.1 The of an must include a note giving particulars of amounts treated as in the in relation to auditors’ services, regardless of whether the amounts are considered im, for:
(a) auditing the 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 Section, performance audits are not taken to be services provided to an .
23.3 Authorities must disclose the extent to which auditors’ 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 SPECIFIC REPORTING REQUIREMENTS – BALANCE SHEET
30 Financial Assets – General Information
30.1 Entities must recognise financial in compliance with and other requirements of this Schedule.
30.2 receivable are not under AASB 139 Financial Instruments: Recognition and Measurement 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 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 Sections and , subsequent to initial recognition Entities must measure every class 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 Sections , or , 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 Section .
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 Section , non-financial as listed in Section or recognised in compliance with Section , other than investment property, must be subject to formal revaluations at least once every five years. These assets must be assessed by Entities each year to ensure that the of each asset does not differ materially from as at reporting date. An assessment does not necessarily have to be a formal valuation process.
33.8 Investment property must be formally revalued annually in compliance with AASB 140.
33.9 A for-profit or an , that is a university may elect not to apply the requirements of Sections , , and .
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. Aus 32.1 is to be complied with 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 s31 ).
34.4 Impairment losses on assets for the period must be reported in the Financial Report.
35 Analysis of Non-Financial Assets
35.1 Notes to the must include the following listed Tables in Annexure A (PRIMA), 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 of, 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.
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 AASB Framework for Preparation and Presentation of Financial Statements.
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 .
38.3 The note referred to in Section 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;
(ii) estimated value of disposed of during the reporting period; and
(iii) 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 Section 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 .
40 Liabilities – General Information
40.1 Entities must disclose financial in compliance with of this Schedule.
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 any is required to pay its profit for the year to the after the deduction of certain amounts, a for 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 Section of this Schedule and recognise a reduction in in the in compliance with Section .
42 Provisions
(Schedule 1 contains no black letter requirements in this Division)
43 Employee Benefits
43A Employee Benefits Disclosures
43.1 Entities must report as required in AASB 119 Employee Benefits compliant with Sections to of this Schedule. To comply with AASB 119, leave are to be discounted on the basis of when leave is expected to be taken.
43B 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.
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 (eg. 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 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 the Department of Finance and Administration (Finance) Annual for these Schemes. The Finance does not need to be published for these references to be made.
44.3 Public Financial Corporations (PFCs), (GBEs) and Air Services Australia can only apply either the direct to equity or direct to income approach for actuarial gains and losses for defined benefit plans as outlined in AASB 119. All other Entities are to apply the ‘direct to retained profit’ 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 all 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 the in accordance with AASB 139 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 instruments at
fair value.
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 SPECIFIC REPORTING REQUIREMENTS – 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 in compliance with AASB 107 Cash Flow Statements.
75 Schedule of Administered Items
75.1 Entities must prepare a Schedule of Administered items in compliance with of this Schedule.
80 Contingencies
80A Schedule of Contingencies
80.1 Contingent and contingent that are able to be reliably measured must be classified in accordance with the categories in the Schedule of Contingencies in Annexure A (PRIMA); 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 extremely rare cases, it is recommended that Entities apply paragraph 92 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
80B 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 (PRIMA) to this Schedule, 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.
80C 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 (PRIMA) to this Schedule, except 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 category of departmental commitments in a Schedule of Commitments in accordance with the tables in Annexure A (PRIMA) 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 will include GST where applicable. A corresponding commitment receivable must be recorded for GST amounts recoverable from the Australian Taxation Office.
Part G SPECIFIC FINANCIAL REPORTING REQUIREMENTS – ADMINISTERED REPORTING
85 Administered Reporting – General Information
85.1 Entities must disclose as defined in in compliance with this Schedule unless stated otherwise.
85.2 The of an , that administers activities for the must include a Schedule of Administered Items and associated Administered Notes, other than the Australian Office of Financial Management (AOFM) which must still report in compliance with AASB 101 Presentation of Financial Statements.
85.3 The Schedule of Administered Items and associated Administered Notes must:
(a) include as defined in of this Schedule;
(b) be presented in the form prescribed by Annexure A (PRIMA) to this Schedule;
(c) include the Administered Reconciliation Table in accordance with Section of this Schedule;
(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) to the extent that it is applicable, comply with of this Schedule;
(b) comply with all applicable requirements of this Schedule and supporting policy; and
(c) 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 at 1 July
(b) (Plus) Administered
(c) (Less) Administered
(d) Administered transfers to/from :
(i) Appropriation Transfers from OPA:
· Annual Administered
· Administered and
· Special (limited)
· Special (unlimited)
(ii) Transfers to OPA
(iii) Restructuring
(e) Transfers to other Entities (Finance – Whole-of-Government)
(f) Transfers from other Entities (Finance – Whole-of-Government)
(g) Administered taken to/from
(h) Currency translation gain/loss
(i) Changes in accounting policies
(j) Closing administered less administered
85.7 Administered transfers must be recognised and reported in compliance with Section of this Schedule.
86 Income and Expenses Administered On Behalf of Government
86.1 Administered transfers between wholly owned Entities are not to be recorded as administered and .
87 Administered Investments
87.1 must be disclosed in the 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 Report 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. Immediately prior to being classified as ‘held for sale’ the administered investments must be revalued in accordance with the applicable accounting standard. The measurement provisions of AASB 5 do not apply to administered investments, as they are exempt financial assets under AASB 5.
88.2 Where a decision to transfer an to another for sale has been taken, however the transfer date is not specified, the is assumed to have been transferred on the date of the decision to sell the .
88.3 Transfers of must be transferred at net book value and accounted for in accordance with of this Schedule.
88.4 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.
88.5 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 .
89.2 The cash generating unit provisions of AASB 136 will only apply to administered (excluding ) where these are used to generate cash inflows primarily from outside the .
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 these Schemes are reported in the administered of the Department of Finance and Administration (PSS and CSS) and the Department of Defence (military superannuation Schemes) on behalf of the .
Part H SPECIFIC REPORTING REQUIREMENTS – 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.
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’ (Restructuring) 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 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 – 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 SPECIFIC REPORTING REQUIREMENTS – 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 Section .
100.2 Amounts reported in the notes to the for are to be rounded to the nearest $1,000, unless that amount is $500 or less, in which case the amount must be rounded to zero.
101 Recognition of Appropriations - Departmental
101.1 Agencies must recognise all departmental as outlined in Section .
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 Section , 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 ’, when the obligation for which the exists is incurred to the amount of the obligation;
(d) ‘s31 of the FMA Act’, for the increased appropriation provided by amounts received that are eligible s31 receipts, as the is earned (ie on an accrual basis);
(e) ‘ – adjustments’ specified in the Appropriation Acts. The date of application is to be used for disclosure. Where the date is unknown at the time of reporting, the date of determination is to be used; and
(f) ‘Advance to the Finance Minister’ (for Parliamentary Departments, the Presiding Officer) specified in the Appropriation Acts, the date of the determination or the date applicable as stated in 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 s28 of the FMA Act, must be recognised and/or disclosed under their valid appropriation, and as required by Table D in Annexure A (PRIMA) to this Schedule.
101A 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 Section .
Departmental Non-Operating Appropriations Specified in Appropriation Acts
101.6 Subject to Section , departmental non-operating must be recognised and disclosed at the amounts in the Appropriation Acts, adjusted, where applicable, in accordance with Section .
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 Section .
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 Previous years’ , where additional work is requested by Government with funding to follow in the subsequent period, as ‘previous years’ ’, the may 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 Section , 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) under s31 of the FMA Act;
(b) transfers of appropriation under s32 of the FMA Act;
(c) other amounts (excluding s31 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) determination of reductions 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 savings are to be returned to the Budget; and/or
(g) all other adjustments (including savings approved during the year), made as a consequence of a policy of the Government, evidenced by a decision of the Cabinet or the Prime Minister.
101.14 The agreements referred to in Section 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.
101B 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 where an relinquishes control of funds which had been appropriation in a previous financial year, by making a non-reciprocal payment to the Official Public Account other than as a dividend referred to in of this Schedule. 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 Section of this Schedule are recognised in the of the :
(a) at the date of effect of a Ministerial direction;
(b) at the date the appropriation amount is reduced as a consequence of Government policy;
(c) at the date of the determination of reduction for a departmental appropriation in accordance with Appropriation Acts; or
(d) at the date that payment is made in all other cases.
101C Investment of Public Money
101.17 Each must recognise and/or disclose all public money invested in authorised investments under s39 of the FMA Act or surplus funds under s18 and s19 of the CAC Act in Table E in Annexure A (PRIMA) to this Schedule. All money invested under a must also be disclosed in accordance with of this Schedule.
102 Recognition of Appropriations - Administered
102.1 Agencies must recognise all administered as outlined below, in the ‘Administered Reconciliation Table’ (refer Section of this Schedule), but not as , except for eligible FMA Act s31 administered receipts which are recognised as in the Schedule of ‘Income Administered on Behalf of Government’ when earned (ie accrual basis). This Section also applies to for that are and .
102.2 Internal transactions (within the administered ) must not be reported in the Schedule of Administered Income, Expense, 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) ‘ – basic ’ and ‘State, ACT, NT and local government items’ appropriated under Part 2 of Appropriation Acts, when drawn down for the amount to be received or drawn against the appropriation;
(b) Administered , when it is drawn down for the amount to be received or adjusted against the appropriation.
(c) Administered s31 receipts, that is, the increased appropriation provided by amounts received that are eligible s31 receipts, as the is earned; and
(d) The funding for State, ACT, NT and local government items (Specific Purpose Payments to the States and Territories), when drawn down for the amount to be received or drawn against the appropriation; 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 of the determination or the date applicable as stated in the determination.
102.4 Adjustments to the current year can be made where an eligible s31 receipt was incorrectly raised.
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 s28 of the FMA Act, must be recognised and/or disclosed under their valid appropriation, and as required by Table D in Annexure A (PRIMA) to this Schedule.
103 Recognition of Appropriations – CAC Entities
103.1 CAC Entities (Authorities) are required to report amounts appropriated by Parliament to them through annual or even where it is determined that the amount may not legally be classified as an appropriation. Amounts must be reported in line with the treatment identified for Agencies as set out in Divisions and where Authorities receive funding under the Appropriation Acts.
103.2 Authorities shall modify the revenues from Government disclosures as required in Divisions and 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 authorised investments under s18 and s19 of the CAC Act or other relevant legislation in Table E in Annexure A (PRIMA) to this Schedule.
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 Section , applying to departmental and , pursuant to Tables A to G in Annexure A (PRIMA) to this Schedule.’
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 Annexure A (PRIMA) to this Schedule.
104.3 For , a table must be prepared by Entities for each Appropriation Act in accordance with Annexure A (PRIMA) or alternatively an can present each as an additional column to the table in PRIMA.
104.4 For , where an has not been drawn on in the current and the previous year, in place of completing the tables in Annexure A (PRIMA), 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 in accordance with Annexure A (PRIMA) to this Schedule;
(ii) administered and as part of the Schedule of Administered Items in accordance with Annexure A (PRIMA) to this Schedule;
(iii) administered cash flows as part of the Schedule of Administered Items in accordance with Annexure A (PRIMA) to this Schedule;
(iv) administered reconciliation table in Annexure A (PRIMA) in accordance with Section of this Schedule;
(v) appropriation Tables C, D, E and F in Annexure A (PRIMA) related to of this Schedule (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 in accordance with Annexure A (PRIMA) to this Schedule;
(ii) departmental and as part of the Balance Sheet in accordance with Annexure A (PRIMA) to this Schedule;
(iii) departmental cash flows as part of the Cash Flow Statement in accordance with Annexure A (PRIMA) to this Schedule;
(iv) appropriation Tables C, D, E and F in Annexure A (PRIMA) related to of this Schedule (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 in Annexure A (PRIMA) (and limited legislation) must be the same as the amounts set out in those Acts and the ’s latest published budget statements for that year.
104.7 Where there are variances between the cash payments for the reporting period and the amount appropriated, otherwise authorised or estimated through Budget Estimates, Entities must provide an explanation of those variances below the relevant Table in Annexure A (PRIMA).
104.8 The amounts shown in the lines for the Budget Estimates for unlimited legislation must use the latest estimates from the following year’s budget papers, and be based on an ’s estimate of payments where eligibility is established.
104.9 Special under s28 and s39 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 Annexure A (PRIMA) to this Schedule.
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 Section ; 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 Section .
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 Annexure A (PRIMA) to this Schedule.
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 Section of this Schedule, not Section .
104.14 The availability of any un-drawn non-operating must be disclosed in the notes to the .
104B Appropriations Tables
104.15 The following information must be recorded on a cash basis, except for items marked with an asterisk (*) which must be reported on an accrual basis, for administered and departmental and related to , as specified in Annexure A (PRIMA) Table A Acquittal of authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations:
(a) Balance carried from previous period Appropriation Acts
(b) Appropriation Act (No. 1)
(c) Appropriation Act (No. 3)
(d) Reduction in
(e) Departmental adjustments by the Finance Minister (Appropriation Acts) and borrowings
(f) Comcover receipts (Appropriation Act No. 1 s13)
(g) Advance to the Finance Minister (FMA Act)
(h) Refunds credited (FMA Act s30)
(i) to take account of recoverable GST (FMA Act s30A)
(j) Annotations to ‘net ’ (FMA Act s31)
(k) Adjustment of on change of function (FMA Act s32)
(l) Total appropriation available for payments
(m) Cash payments made during the year (GST inclusive)
(n) credited to (excluding GST)
(o) 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
(p) Total
104.16 The following information must be recorded on a cash basis, except for items marked with an asterisk (*) which must be reported on an accrual basis, State, ACT, NT and local government items and New Administered Expenses related to each Outcome, and Non-Operating , loans, previous years’ and administered and , relating to , as specified in Annexure A (PRIMA) Table B Acquittal of authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations:
(a) Balance carried from previous period (Appropriation Acts)
(b) Reduction of (prior years)
(c) Adjusted balance carried from previous period
(d) Appropriation Act (No.2)
(e) Appropriation Act (No.4)
(f) Reduction in
(g) Departmental adjustments and borrowings
(h) Advance to the Finance Minister (FMA Act)
(i) Refunds credited (FMA Act s30)
(j) to take account of recoverable GST (FMA Act s30A)
(k) Adjustment of on change of function (FMA Act s32)
(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
(p) Total
104.17 The following information must be reported,as specified in Annexure A (PRIMA) 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 s30)
(iv) Total charged to appropriation
(v) Estimated actual
104.18 The following information must be reported,as specified in Annexure A (PRIMA) 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 s30)
(iv) Total charged to
(v) Budget Estimate (listing each other legislative provision that refunds have been made under)
(vi) Budget Estimate (FMA Act s28)
104.19 The following information must be reported,as specified in Annexure A (PRIMA) Table E Acquittal of authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (s39 FMA Act):
(a) Amount invested carried from previous period
(b) Prior year investments redeemed in current year
(c) Investments made during the year (gross)
(d) Redemptions of current year investments (gross)
(e) Amount invested carried to the next period (sum of above)
(f) Budget Estimate
104.20 The following information must be reported on a cash basis, except for items marked with an asterisk (*) which must be reported on an accrual basis, by Appropriation type,as specified in Annexure A (PRIMA) Table F Acquittal of authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount):
(a) Particulars of legislation providing appropriation (including purpose):
(i) Amount available carried from previous period
(ii) for reporting period
(iii) to take account of recoverable GST (FMA Act s30A)
(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
104.21 The following information must be reported,as specified in Annexure A (PRIMA) Table G Disclosure by agent in relation to Special Appropriations 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
104.22 Entities must prepare a separate Table C Acquittal of authority to Draw Cash from the Consolidated Revenue Fund – Special Appropriations (Unlimited Amount) from Annexure A (PRIMA) for each Appropriation Act, current as at reporting date. In the heading of each table, Entities must:
(a) identify whether the is administered or departmental; and
(b) disclose the outcome it is associated with.
Entities must disclose all unlimited in this format, excluding those unlimited required to be disclosed under Tables D and E in Annexure A (PRIMA) to this Schedule.
104.23 Where an has not used s28 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 Acquittal of authority to Draw Cash from the Consolidated Revenue Fund – Special Appropriations (Refund Provisions) in Annexure A (PRIMA) : “For the periods 2005-06 and 2006-07, () has not used s28 of the FMA Act or any other legislative provision allowing for refunds to be paid.”
104.24 If the has made repayments using s28 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 Table D Acquittal of authority to Draw Cash from the Consolidated Revenue Fund – Special Appropriations (Refund Provisions) in Annexure A (PRIMA).
104.25 Where an has a delegation but has not used s39 of the FMA Act, that may make the following statement in place of disclosing Table E Acquittal of authority to Draw Cash from the Consolidated Revenue Fund – Special Appropriations of Annexure A (PRIMA): “For the periods 2005-06 and 2006-07, () has not used s39 of the FMA Act.”
104.26 For cross-referencing purposes, where an makes disclosures in Table F Acquittal of authority to Draw Cash from the Consolidated Revenue Fund –Special Appropriation (Limited Amount) in Annexure A (PRIMA) and at least one other has drawn from the same , the making disclosures in this Table must name those other Entities by making the following statement: “(Other /Entities) also drew from ( provision/s).”
Part J SPECIFIC REPORTING REQUIREMENTS – 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 reported in the notes to the Financial Statements for Special Accounts are to be rounded to the nearest $1,000, unless that amount is $500 or less, in which case the amount must be rounded to zero.
120.3 The Consolidated Revenue Fund is appropriated to the balance of the .
120.4 Amounts deposited in a from external Entities must be recognised when the controls the funding as / (as per FMA Act s31). The is also reflected in the ’s departmental or administered as appropriate.
120.5 Transfers of departmental to a departmental , or administered appropriation to an administered are not recognised/disclosed in the , but are an internal transfer.
120.6 Entities must make the disclosures as required in Annexure A (PRIMA) to this Schedule on a cash basis. Entities can disclose each in a separate Table or each as a new column to Table A.
120.7 The following information must be recorded for as specified in Annexure A (PRIMA) Table A Special Accounts:
(a) Balance carried from previous period
(b) Appropriation for reporting period
(c) Costs recovered
(d) GST credits (FMA Act s30A)
(e) Realised investments
(f) Other receipts
(g) Total Credits
(h) Available for payments
(i) Payments made
(j) Repayments debited from the (FMA Act s28)
(k) Investments debited from the (FMA Act s39)
(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 ; and record
(n) Total balance carried to the next period
120.8 The following information must be recorded for as specified in Annexure A (PRIMA) Table B Special Accounts Investment of Public Money:
(a) Full official title of : Investment of Public Money under s39 of the FMA Act
(b) Opening balance
(c) Investments made
(d) Interest earned
(e) Transaction charges
(f) Investments realised
(g) Closing Balance
120.9 may 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 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 in Annexure A (PRIMA) to the Schedule.
120.10 that have been determined as pursuant to Order 6.2.1 of the Financial Management and Accountability Orders 1997 are required to comply with Section of this Schedule and prepare separate .
120.11 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 & B in Annexure A (PRIMA) to this Schedule:
(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.
120.12 Entities that invest amounts standing to the credit of a must include details of the investment policy used.
120.13 Where investments are made under an Act of Parliament other than s39 of the FMA Act, the same format as Table B in Annexure A (PRIMA) should be followed. The name of the relevant Act and section under which the investment is made must be noted.
120.14 Entities must report moneys subject to trust law that stand to the credit of a in the notes to the for . held in trust as defined in of this Schedule that stand to the credit of a must be reported in compliance with Policy to this Schedule.
120.15 Unclaimed moneys are an Held in Trust and must be disclosed in compliance with , these moneys must be credited to a suitable and this account is to be reported in compliance with this Division of the FMOs ().
21 Reporting of Outcomes and Outputs
121.1 Entities in the must disclose and related to departmental and in accordance with this Schedule, as outlined in Annexure A (PRIMA).
121.2 Amounts reported in the notes to the for and are to be rounded to the nearest $1,000, unless that amount is $500 or less, in which case the amount must be rounded to zero.
121.3 Outcome and output amounts disclosed must be net of refunds and adjustments.
121.4 The following information must be disclosed by Entities in the by Outcome and Year, for departmental and , as specified in Table A Net Cost of Outcome Delivery in Annexure A (PRIMA):
(a) Expenses
(b) Total and total for administered and respectively
(c) Costs recovered
(d) Total s recovered and total s recovered for administered and respectively
(e) Other external
(f) Total other external and total other external for administered and respectively
(g) Net /(contribution) of outcome and net /(contribution) for administered and departmental item respectively
121.5 The following information must be disclosed by Entities in the by Output, Group and Outcome by Year, as specified in Annexure A (PRIMA) Table B Major Departmental Income and Expenses by Output Groups and Outputs:
(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 following information must be disclosed by Entities in the by Outcome and Year, as specified in Annexure A (PRIMA) Table C Major Classes of Administered Income and Expenses by Outcome:
(a)
(b) Show each relevant major class
(c) Expenses
(d) Show each relevant major class
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 , based on the date that the Appropriation Act notifying the change received Royal Assent, 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 in Annexure A (PRIMA) 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 in Annexure A (PRIMA).
121.12 Entities must disclose the nature of other external in Table A Net Cost of Outcome Delivery in Annexure A (PRIMA) 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 regardless of the amounts involved, as relevant to the , in relation to each of the following:
(a) Act of Grace payments made under subsection 33(1) of the Financial Management and Accountability Act 1997 (FMA Act) as approved by the Minister for Finance and Administration (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 s73 of the Public Service Act 1999 (PS Act).
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 – PRIMA
Introduction
A.1 PRIMA sets out the prescriptive content, layout, and formatting requirements for all Entities in compiling and presenting their 2006-07 annual in compliance with the 2006-07 FMOs and the Australian Accounting Standards and associated authoritative requirements. PRIMA has been designed to meet common disclosure requirements of Agencies and Authorities respectively and therefore does 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 business operations including those that are required by Accounting Standards addressed in A.3 as applicable;
(b) not to include components of PRIMA that are not relevant to their business operations or where no activity, including comparative activity from the previous financial year has taken place. This applies primarily to notes as set out in PRIMA;
(c) to alter or amend the numbering of notes but not their sequencing within the presentation of the as set out within PRIMA except where amendments permitted under (a), and (b) above require such components of PRIMA to be inserted, deleted or added, and to ensure the contextual and logical flow of information for stakeholders.; and
(d) 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, such that it presents true and fair disclosures of 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 PRIMA and where relevant must be included in the Financial Report 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 7 Financial Instruments: Disclosures
· AASB 114 Segment reporting
· AASB 120 Accounting for Government Grants and Disclosure of Government Assistance
· AASB 124 Related parties
· AASB 129 Financial Reporting in Hyperinflationary Economies
· AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions
· AASB 133 Earnings per Share
· AASB 134 Interim Financial Reporting
· AASB 1023 General Insurance Contracts
· AASB 1038 Life Insurance Contracts
· AASB 1039 Concise Financial Reports
· AASB 1045 Land Under Roads: Amendments to AAS 27A, AAS 29A and AAS 31A
· AAS 25 Financial Reporting by Superannuation Plans
· AAS 27 Financial Reporting by Local Governments and amendments
· AAS 31 Financial Reporting by Governments and amendments
· Hedge Accounting under AASB 139 Financial Instruments: Presentation and Disclosure
· Tax effect accounting under AASB 112 Income Taxes
This listing is not exhaustive. Compliance with these additional disclosures is required where appropriate to present a true and fair view.
