Disclosure of parliamentary appropriatioDisclosure of parliamentary appropriations and other related authorities for expenditure

## Disclosure of parliamentary appropriations and other related authorities for expenditure BC131 When developing AASB 1004 (December 2007), the Board decided to defer consideration of whether disclosures of parliamentary appropriations should apply to not-for-profit public sector entities other than government departments, given the short-term nature of its project at that time. The Board noted that in due course, it would consider extending the application of the requirements. BC132 As part of this project, the Board reviewed the specified disclosures of compliance with parliamentary appropriations and other externally-imposed requirements required of government departments which had been included in AASB 1004 (now deleted from that Standard). The Board decided, in light of changes in public sector financial management arrangements since originally developing these requirements, to propose extending the scope of disclosures in this regard to include other public sector entities that obtain part or all of their spending authority from parliamentary appropriations. BC133 In reviewing the disclosures, the Board acknowledged constituent concerns that the interaction between two of the specified disclosures was unclear, as the scope of paragraph 64(e) of AASB 1004 was broader than the scope of paragraph 64(d). The Board decided to clarify its requirements in this regard by proposing in ED 260: (a) not to carry forward the text of paragraph 64(e) into AASB 1058; and (b) to require disclosure of the financial consequences of an unauthorised expenditure. BC134 Respondents to the ED were generally supportive of the Board’s proposals in this regard. In its redeliberations, the Board noted a concern raised that by extending the application of these disclosure requirements beyond government departments some might interpret the disclosure requirements as applying to for-profit entities in the public sector. The Board observed that the scope of AASB 1058 is limited to not-for-profit entities and therefore for-profit public sector entities would not be subject to these disclosures. BC135 The Board discussed a concern whether the proposed disclosure requirements duplicate existing disclosures in AASB 1055 Budgetary Reporting. The Board reaffirmed its view that these disclosures contain fundamentally different requirements from AASB 1055 and should be retained, as the disclosures are focused on information concerning how appropriations and other advances received have been expended, rather than the more broadly based requirements in AASB 1055 for actual to budget variance analysis (see paragraph BC28 in AASB 1055). BC136 In addition, as part of its deliberations, the Board discussed whether to relocate disclosures about a government department’s compliance with parliamentary appropriations and other externally-imposed requirements from AASB 1004 to AASB 1054 Australian Additional Disclosures, rather than this Standard. The Board concluded it would be more user-friendly to include these disclosure requirements in AASB 1058 given the nexus between the income of government departments and appropriated amounts. BC137 Having regard to the feedback received, the Board decided to finalise the disclosure in this regard largely as exposed in ED 260. … Other …