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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
These Orders prescribe the exact formats, recognition rules and note disclosures that Commonwealth Agencies, Authorities, their economic entities and designated business operations must use when preparing annual financial statements for reporting periods ending on or after 1 July 2005. They standardise presentation (primary statements, schedules, Appendix A forms) and set specific rules for appropriations, special accounts, assets, liabilities, administered items and transition to Australian equivalents of IFRS. The Rules affect entity preparers, auditors and the Finance Minister’s consolidation of whole‑of‑government accounts.
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Direct links to the current provisions in Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005).
1 Name of Orders
These Orders are the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005).
Notes:
2 Commencement
These Orders commence on 1 July 2005.
3 Financial statements for reporting periods ending on or after 1 July 2005
For subsection 49 (2) of the Financial Management and Accountability Act 1997, Schedule 1 sets out the requirements for the preparation of annual financial statements for reporting periods ending on or after 1 July 2005.
Note:
Schedule 1 is identical to Schedule 1 to the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005). 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 2005.
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Schedule 1: Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2005 (Black Letter Policy and Appendix A Only)
CHAPTER 1 APPLICATION AND PRESENTATION
CHAPTER 2 APPROPRIATIONS AND OUTCOMES REPORTING
2A Recognition of Appropriations
2B Departmental and Administered Items
2C Disclosures of Appropriations
2D Reporting of Outcomes and Outputs
3D Heritage And Cultural Assets
4A Contingent Liabilities and Contingent Assets
4C Employee Entitlements (New Policy)
5B Return of Funds (previously Analysis of Equity)
CHAPTER 7 SPECIFIC NOTE DISCLOSURES
7A Compensation and Debt Relief in Special Circumstances
7B Director/Executive Remuneration
7D Investment of Surplus Money by Authorities (New Policy)
8A Financial Instruments (New Policy)
APPENDIX A - Forms of Financial Statements, Schedules and Notes:
Section 1: For-Profit Reporting Entities
Section 2: Not-For-Profit Reporting Entities
Section 3: Administered Reporting
| AAS | Australian Accounting Standards<br> | | AASB | Australian Accounting Standards Board<br> | | Active Market | A market where all the following conditions exist:<br> the items traded within the market are homogenous; willing buyers and sellers can normally be found at any time; and the prices are available to the public.<br> (AASB 138 para. 8)<br> | | Administrative Arrangements Orders (AAOs)<br> <br> | The functions and activities of the Government are administered in accordance with AAOs, issued from time to time by the Government and signed by the Governor-General. The AAOs establish the principal matters or government outcomes to be dealt with by each Department of State, and the Acts of Parliament to be administered by each portfolio Minister.<br> | | AEIFRS | Australian Equivalents to International Financial Reporting Standards<br> | | Agency | An Agency is as defined in section 5 of the Financial Management and Accountability Act 1997.<br> | | Amortisation | The systematic allocation of the depreciable amount of an intangible asset over its useful life.<br>(AASB 138 para. 8)<br> | | Resources Received Free of Charge | Includes any economic benefits which are received for no or nominal consideration.<br> | | Australian Government | All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.<br> | | Authority<br> | A Commonwealth authority as defined in section 7 of the Commonwealth Authorities and Companies Act 1997.<br> | | Business Operations | Activity or activities 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 to persons or other entities for market prices and are not ‘primarily’ funded by appropriations.<br> | | Carrying Amount | The amount at which an asset or liability is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses.<br>(AASB 116 para. 6)<br> | | 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.<br>(AASB 5 Appendix A)<br> | | Charter of Budget Honesty | The Charter of Budget Honesty Act 1998 provides a legislative framework for the conduct and reporting of fiscal policy. Broadly the Charter (Schedule 1 of the Act) requires the Government’s fiscal strategy to be based on the principles of sound fiscal management. In addition, the Secretaries of the Department of Finance and Administration and the Department of the Treasury are to publicly release a pre-election fiscal and economic outlook report if a general election is called and cost any publicly announced polices submitted by the Government or Opposition if so requested.<br> | | Commonwealth | The legal entity of the Commonwealth of Australia, created by the Australian Constitution.<br> | | Consolidated Financial Statements (CFS) | The Australian Government’s Consolidated Financial Statements (CFS) is the annual, end-of-year financial report prepared under section 55 of the Financial Management and Accountability Act 1997, and in accordance with Australian Accounting Standards, including AAS31 Financial Reporting by Governments. The CFS shows the consolidated results for the Australian Government includes consolidated results for all controlled entities as well as disaggregated information on the various sectors of government (general government, public non-financial corporations and public financial corporations).<br> | | 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 entity.<br> | | 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 entity; or<br>(b) a present obligation that arises from past events but is not recognised because:<br>(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.<br>(AASB 137 para. 10)<br> | | Cost | As defined in AASB 116, Property, Plant and Equipment, and amounts deemed as cost as permitted by AASB 1, First-time Adoption of Australian Equivalents to International Financial Reporting Standards, and other relevant standards.<br> |
| Cost Recoveries | All costs recovered by the Australian Government for provision of goods and services to the private and non-government sectors.<br>Cost recoveries do not include: intra-government charging, government business enterprises, competitively neutral commercial arrangements, taxes, loans, asset sales or other property related incomes, fines and penalties, one-off specific policy measures, industry-government partnerships or statutory marketing levies, fees and charges by courts and tribunals.<br> | | Costs to sell | The incremental costs directly attributable to the disposal of an asset (or disposal group) excluding finance costs and income tax expense.<br>(AASB 5 Appendix A)<br> | | Depreciable Amount<br> <br> | The cost of an asset, or other amount substituted for cost, less its residual value<br>(AASB 116 para. 6)<br> | | Depreciated Replacement Cost<br> | The current cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.<br>(AASB 136 para. 6)<br> | | 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.<br> | | Entity | As described in Clause 1B.1 of this document.<br> | | Entity Assets | In the Australian Government context, assets that are controlled by an entity, rather than merely administered on behalf of Government.<br> | | Fair Value | The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.<br>(AASB 116 para. 6)<br> | | FinanceBriefs | These provide clarification and guidance on the Government’s accounting and financial reporting policies as required throughout the year and are prepared by Finance. |
| 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.<br>(AASB 117 para. 4)<br> | | Financial Instrument | Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.<br>(AASB 132 para. 11)<br> <br> <br> | | Financial Statements | Include:<br> the statements, schedules and notes required by these Orders; and 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);<br>prepared in relation to:<br>- the Agency or Authority; and<br>- where the Agency or Authority is a parent entity—the economic entity comprising the Agency or Authority and its subsidiaries.<br> | | For-Profit Entities | Refer to Appendix A of this document. <br> | | General Government Sector (GGS)<br> | The GGS is a Government Finance Statistics (GFS) concept for entities that fulfil the functions of government as their primary activity. The primary function of this sector is to provide public services, which are mainly non-market in nature, and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies.<br> | | Government Business Enterprises (GBE) | A Commonwealth authority or Commonwealth company that is prescribed as a GBE in regulations under the Commonwealth Authorities and Companies Act 1997.<br> | | Grants<br> | Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. (AASB 120 para.3).<br> | | Heritage Buildings | Heritage buildings are those buildings, monuments or structures that are (or are likely to become) symbolic of government, public activities, historical significance or cultural association (eg. Australian Government buildings listed on the National Trust.)<br> | | Impairment Loss | The amount by which the carrying amount of an asset exceeds its recoverable amount.<br>(AASB 116 para. 6)<br> | | Intangible Asset | An identifiable non-monetary asset without physical substance.<br>(AASB 138 para. 8)<br> | | Market Buying Price<br> | The amount for which an asset with similar service potential could be bought by a knowledgeable, willing buyer from a knowledgeable, willing seller in an arms-length transaction at current prices plus the buyer’s transaction costs. This equates to current market value plus the buyer’s transaction costs.<br> | | Market Selling Price | The price that a willing seller would accept from a knowledgeable, willing buyer for an asset in an arms-length transaction at current prices. This does not include transaction costs.<br> | | Net Selling Price | Refer to Appendix B of this document.<br> | | Not-For-Profit Entities | An entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent and each of the entities that it controls.<br>(AASB 116 para. AUS 6.1)<br> | | Operating Lease | A lease other than a finance lease.<br>(AASB 117 para. 4)<br> | | 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.<br> | | Preservation | Work performed to maintain an item in its existing state.<br> | | Progressive Revaluation | Revaluation of assets within a class, conducted in a systematic manner over a number of years.<br> | | Recoverable Amount | Means the higher of an asset’s fair value less costs to sell and its value in use.<br>(AASB 5 Appendix A)<br> | | Reproduction Cost | The cost of replicating an existing asset.<br> | | Reserves<br> | Include:<br> amounts set aside out of profits; or other gains or increments not reflected in the profit or loss (or surplus or deficit) (such as gains on revaluation of assets).<br> | | Revaluation | The act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a particular date, but excludes recoverable amount write-downs and impairment losses.<br> | | Surplus assets | Assets that are held for disposal, being those assets for which:<br> an entity has entered into a binding sale agreement; or an entity’s management or governing body has approved a formal plan to dispose of the assets.<br>(AASB 116 para. 6)<br> | | Useful Life | a) the period over which an asset is expected to be available for use by the entity; or<br>b) the number of production or similar units that is expected to be obtained from the asset by the entity.<br>(AASB 116 para. 6)<br> | | Value in Use | The present value of the future cash flows expected to be derived from an asset or cash-generating unit.<br>In respect of not-for-profit entities, value in use is depreciated replacement cost 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 entity would, if deprived of the asset, replace its remaining future economic benefits.<br>(AASB 136 para. 16)<br> |
1A.1 Subject to Clause 1A.2 of this Policy, the requirements of this Schedule apply to financial statements prepared for reporting periods ending on or after 1 July 2005.
1A.2 For entities that cease to exist on or after 1 July 2005, the financial reporting requirements set out in this Schedule shall apply.
1B.1 Financial statements must be prepared for the following entities:
(a) each Agency and Authority;
(b) the economic entity, comprising the Agency or Authority and its subsidiaries; and
(c) each activity or activities of an Agency which is/are determined to be a Business Operation.
1B.2 The financial statements of each entity must be presented in the following order:
1B.3 The financial statements of each entity must:
(b) comply with:
(c) have regard to:
(i) the Explanatory Notes to this Schedule;
(ii) the Statements of Accounting Concepts (SACs);
(iii) the AASB Framework for the Preparation and Presentation of Financial Statements; and
(d) be presented in the English language and Australian dollars.
1B.4 Where competitive neutrality (CN) payments are required under the Commonwealth Competitive Neutrality Policy Statement - June 1996, entities must explain and disclose the amount of each of the following:
CN - Regulatory Neutrality Expense
CN - Debt Neutrality Expense
CN - State Tax Equivalent Expense
CN - Commonwealth Tax Equivalent Expense
CN - Other Expense
1B.5 Unless specifically otherwise stated in this Schedule or an accounting standard, comparatives must be disclosed in the financial statements and notes.
1B.6 If an entity wishes to early adopt a new accounting standard other than permitted or required by this schedule, it must seek approval from the Chief Executive of the Department of Finance and Administration due to the potential effect on the preparation of the Consolidated Financial Statements.
1B.7 The requirements of this Schedule apply where information resulting from their application is material. Information is material if its omission, misstatement or non-disclosure has the potential, individually or collectively, to :
(a) influence the economic decisions of users taken on the basis of the financial report; or
1C.1 The signed auditor’s report on the financial statements must be attached to the financial statements.
1C.2 Each economic entity, comprising an Authority’s and its subsidiaries’ financial statements, must present a statement signed by the Chair of the Board (or equivalent) and Chief Executive Officer stating:
(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this Schedule;
(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;
(c) for entities other than 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 entity will be able to pay its debts as and when they fall due;
(d) when additional information is included in the notes to give a true and fair view, then the reasons for forming this view and the location of the additional notes in the financial statements.
(e) that the statement has been made in accordance with a resolution of the Directors; and
(f) the date on which the statement is made.
1C.3 Each other entity required to prepare financial statements, must include a statement signed by the Chief Executive stating:
(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this Schedule;
(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;
(c) when additional information is included in the notes to give a true and fair view, then the reasons for forming this view and the location of the additional notes in the financial statements; and
(d) the date on which the statement is made.
1D.1 The Finance Minister may grant a written exemption to the Chief Executive of an Agency or Directors of an Authority, as the case may be, from any specified requirements of this Schedule.
1D.2 An exemption granted under Clause 1D.1 of this Policy may be granted subject to conditions, including a requirement for alternative forms of disclosure.
1D.3 The Chief Executive or Directors must disclose the particulars of any exemption granted under this Policy in the notes to the financial statements.
1E.1 Unless otherwise provided in this schedule, amounts in the financial statements may be rounded off as follows:
(a) where a reporting entity has assets, liabilities, expenses, income, 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
1E.2 Rounding off must be applied consistently throughout the financial statements.
1E.3 This Policy applies to both entity and administered items.
1F.1 Entities may adopt the simplified reporting provisions set out in this Policy.
Presentation of primary financial statements
1F.2 Where an entity’s net surplus/deficit is solely attributable to the Australian Government in both the current and immediately preceding reporting periods, the Income Statement line items ‘Net Surplus or Deficit attributable to the Australian Government’ or ‘Net Surplus or Deficit attributable to minority interest’ may be omitted.
1F.3 Where an amount is disclosed on the face of a primary statement, it is not necessary to repeat this information in the notes to the financial statements, unless this is required in conjunction with the presentation of other information.
Schedules
1F.4 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 should be disclosed in the notes to the financial statements.
Notes to the financial statements
1F.5 Where the fair value of each class of an entity’s financial assets and financial liabilities equals its carrying amount in both the current and immediately preceding reporting periods entities may state this fact, instead of disclosing these amounts in accordance with paragraph 86 of AASB 132 Financial Instruments: Presentation and Disclosure.
1F.6 In relation to Policy 7A of this Schedule, an entity that has no transactions in either the current reporting or any comparative period, should disclose by way of note that there were no such transactions or balances.
1F.7 This Policy applies to both entity and administered items.
2A.1 The earliest point of recognition and/or disclosure for appropriations is as follows:
(a) for Appropriation Acts (No. 1) and (No. 2) and Appropriation (Parliamentary Departments) Act (No. 1) — the commencement of the financial period (e.g. 1 July);
2A.2 For Authorities, all moneys received from the Commonwealth, excluding grants and non-operating annual appropriations are to be recognised as revenue. Additional disclosure in accordance with this Policy and Policy 2C of this Schedule is required as if they drew the funds from the Consolidated Revenue Fund.
Departmental annual appropriations
2A.3 For departmental output appropriations, recognise the full amount appropriated for departmental outputs as revenue of the year of appropriation, adjusted by all applicable current year formal additions and reductions listed at Clause 2A.13 of this Policy.
2A.4 Subject to Clause 2A.8, departmental non-operating appropriations must be recognised and disclosed at the amounts in the Appropriation Acts, adjusted, where applicable, in accordance with Clause 2A.13 of this Policy.
2A.5 Departmental equity injection appropriations must be recognised as a contribution by owners, increasing ‘Contributed Equity’ from the commencement of the period to which the appropriation applies, irrespective of when drawn down. Equity injections for appropriations in Acts passed after the commencement of the period for which the appropriation applies will be recognised from the date of royal assent.
2A.6 Departmental equity returns must be recognised as a return of capital in accordance with Clause 5B.5 of this Schedule, and not as a reduction in, or refund of, revenue. This will directly reduce ‘contributed equity’ from the time the return of capital is paid.
2A.7 Departmental equity injections or returns can include restructuring agreements resulting from a transfer of function (refer to Clause 5A.2 of this Schedule) and determinations of reductions in accordance with the Appropriations Acts (refer to Clause 5B.6 of this Schedule).
2A.8 Departmental loan appropriations must be recognised as increases in borrowings, when the appropriation is drawn down. They are not revenue.
- Undrawn appropriations - purchasing/workload agreements
2A.9 Where an entity has undrawn appropriation which is required to be returned to Government under a purchasing, workload or other agreement, the entity must recognise the undrawn amount as a liability and not as a reduction in appropriation revenue.
-Previous years’ outputs
2A.10 Where additional work is requested by government with funding to follow in the subsequent period, as ‘previous years outputs’, the agency may book a revenue and an appropriation receivable so long as the transaction is appropriately evidenced. Evidence will include at a minimum, written ministerial agreement. The subsequent appropriation for prior years’ outputs will reduce the appropriation receivable.
Appropriations – adjustments to current year appropriation
2A.11 Formal additions or reductions to recognition of departmental appropriations occur when an entity has gained or lost the capacity to control the appropriation. Formal additions or reductions necessitate adjustments to recognition and/or disclosure of appropriations to the extent they have not already resulted in adjustments in previous years.
2A.12 To be a formal addition or reduction, the gain or loss of control must be evidenced in writing from the appropriate authority as outlined in Clause 2A.13 of this Policy.
2A.13 Departmental appropriations may only be adjusted, by formal additions or reductions, in the current year, for the current year, which are as follows:
2A.14 The agreements referred to in Sub-clause 2A.13(e) of this Policy 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.
Administered Annual Appropriations
2A.15 Administered appropriations must be disclosed when drawn down in the ‘Administered Reconciliation Table’ (in accordance with Clause 6A.3 of this Schedule), and not as revenue.
-State Payment Items
2A.16 The funding for State payment items (Specific Purpose Payments to the States and Territories) shall be reported as administered appropriations.
Special Appropriations – limited and unlimited
2A.17 Agencies must report the amounts appropriated in the current year, under limited and unlimited special appropriations for which they are responsible as follows:
(a) for departmental special appropriations, recognise and disclose the amount appropriated as revenue when the obligation for which the special appropriation exists is incurred; and
(b) for administered special appropriations, disclose in the ‘Administered Reconciliation Table’ the amount appropriated when it is transferred into an agency’s administered bank account.
2A.18 Where an Agency has paid money out of the CRF from a special appropriation that is not the ‘responsible entity’:
(a) the ‘responsible entity’ must disclose the name of the entity to which it has given authority to act as its agent and apply the reporting requirements outlined at Clause 2A.19 of this Policy; and
(b) the entity that has paid money out of the CRF against a special appropriation must disclose the name of the ‘responsible entity’ and apply the reporting requirements outlined at Clause 2A.20 of this Policy.
2A.19 The ‘responsible entity’ is to include the relevant details of its special appropriations in the following elements of its financial statements:
(b) For departmental special appropriations:
2A.20 An Agency paying moneys out of the CRF on behalf of a ‘responsible entity’ against a special appropriation must include relevant details of the special appropriation as a separate note in its financial statements as follows:
(a) full disclosure of the relationship between the entity paying from the CRF and each ‘responsible entity’; and
2A.21 Where an agent pays money out of the CRF on behalf of the ‘responsible agency’, the ‘responsible agency’ must ensure that systems and processes are in place to enable appropriate reporting of the special appropriation.
2B.1 This Policy applies when determining the classification of an item as ‘departmental’ or ‘administered’ for the purpose of preparing accrual-based financial statements (i.e. for all reporting other than in the appropriation and Special Account disclosures notes required by Policies 2C and 2E of this Schedule).
2B.2 Subject to a reclassification by the Finance Minister of an item under Clause 2B.6 of this Policy, an amount explicitly described in an Act (including an annual Appropriation Act) as being ‘departmental’ or ‘administered’, is classified, for the purposes of accrual reporting in the financial statements as described in the Act.
2B.3 All amounts appropriated as State payment items (Specific Payments to the States and Territories) in the annual Appropriation Acts are to be classified as administered items for accrual reporting purposes in the financial statements.
2B.4 Other than as provided in Clauses 2B.2 and 2B.3 of this Policy, all other assets, liabilities, income, expenses, cash flows, contingencies and commitments will be classified as ‘departmental’ or ‘administered’ according to the following rules:
2B.5 Specific reporting requirements apply in relation to trust moneys (refer to Policy 3C of this Schedule).
2B.6 Approval for classifications of new items and reclassifications of existing items is to be obtained from the Finance Minister or a person authorised by the Finance Minister.
2C.1 Entities must make the disclosures in tabular form in the notes to the financial statements required by this Policy for all appropriations.
Table A: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations1, 14
2 Entities must distinguish between “reductions for prior years” through section 8 and 9 determinations relating to previous years, and “appropriation that was reduced by a section 9 determination for the current year”, and disclose the former here. In determining the amount to be disclosed for section 8 determinations, entities must disclose the amount the appropriation was reduced by (e.g. annual appropriation, less all adjustments such as section 32, less section 8 determination amount equals the amount of appropriation reduced by the section 8 determination).
3 As per Appropriation Act (No.1) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) 2005-2006.
6 Section 12 Appropriation Acts (No.1) and (No.3) 2005-2006 or section 14 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
7 This amount will be the current year amount of appropriation for departmental and/or administered items that was reduced by a section 9 for Act 1 and equivalent for Act 3 determinations by the Finance Minister before 30 June.
8 The amount recorded will be the amounts of GST appropriated during the reporting period (i.e. cash paid basis), but will need to exclude GST appropriated for payments to Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.
9 Entities must disclose the appropriation receivable net of that amount for which the Finance Minister “withheld the drawing right” and separately disclose the amount of appropriation receivable whose drawing rights have been withheld.
10 Where an adjustment meets the recognition criteria of a formal reduction to an appropriation, in accordance with Clause 2A.15 of this Schedule, but at law the appropriation has not been reduced, the entity must disclose those amounts as an aggregate.
12 If an entity prefers, the comparative year information may be shown to the right of the current year columns. If this approach is taken, the more extensive current year disclosure requirements must be used for both years.
14 The “Represented by” lines in Table A and related footnotes 9-11 are intended to report a reconciliation between the balance of each appropriation legally available as at 30 June each year and the balances of cash and appropriations receivables for departmental items and the balance of cash in an agency’s administered bank accounts for administered items. Entities should report any other reconciling items if applicable.
Table B: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations1, 15
2 State payment items (Specific Payments to the States and Territories) (refer Budget Papers).
3 New Administered Expenses.
4 For this item, entities must distinguish between “reductions for prior years” through section 7, 8 and 11 determinations made during the current year that relate to previous years, and “appropriation that was reduced by a section 11 determination for the current year”, and disclose the former. In determining the amount to be disclosed for section 8 determinations, entities must disclose the amount the appropriation was reduced by (i.e. annual appropriation, less all adjustments such as section 32, less section 8 determination amount equals the amount of appropriation reduced by the section 8 determination).
5 As per Appropriation Act (No.2) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) 2005-2006.
6 This item must be as per Appropriation Act (No.4) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) and (No. 2) 2005-2006.
7 Section 12 Appropriation Act (No.2) and (No.4) 2005-2006 and section 13 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
8 Section 13 Appropriation Act (No.2) and (No.4) 2005-2006 and section 14 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
9 The amount recorded will be the amounts of GST appropriated immediately before payments are made (i.e. cash paid basis), but will need to exclude GST appropriated for payments from Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.
10 This amount will be the current year amount of appropriation for departmental and/or administered items that was reduced by a section 9 for Act 1 and equivalent for Act 4 determinations by the Finance Minister before 30 June.
11 Entities must disclose the appropriation receivable net of that amount for which the Finance Minister “withheld the drawing right” and separately disclose the amount of appropriation receivable whose drawing rights have been withheld.
12 Where an adjustment meets the recognition criteria of a formal reduction to an appropriation, in accordance with Clause 2A.13 of this Schedule, but at law the appropriation has not been reduced, the entity must disclose those amounts as an aggregate.
13 This item must equal the amount of appropriation promised to an entity to provide additional outputs in the current year with appropriation to be provided in the following year.
15 To distinguish between appropriations in Table A, for Appropriation Act 1, 3 and Parliamentary Departments 1, this Table B refers to “Other than Ordinary Annual Services Appropriations”. (Refer to note 13, Table A of this Policy.)
Table C: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount) 1, 2, 3
| Particulars of legislation providing appropriation (including purpose) | 2006 | 2005 | | Cash payments made during the year4 | | | | Appropriations credited to Special Accounts | | | | Refunds credited (net) (FMA s 30) | | | | Total charged to appropriation | | | | Estimated actual5 | | |
1 Prepare a separate table for each Act, current as at reporting date. In the heading to the table:
2 Entities must disclose all unlimited special appropriations in this format, excluding those unlimited special appropriations required to be disclosed under Tables D and E of this Policy.
3 For cross-referencing purposes, where an entity makes disclosures under this Table, and at least one other entity has drawn from the same special appropriation, the entity making disclosures under this Table must name those other entities by making the following statement: “(Other entity/entities) also drew from (special appropriation provision/s).”
4 This item must reflect total cash payments made under the special appropriation by the entity during the year.
5 Entities must disclose their Portfolio Budget Statement estimated actual as reported in their 2006-07 budget papers. Cash payments are not legally limited to Budget estimates.
Table D: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Refund Provisions)1, 2
| <br>Particulars of legislation providing appropriation3 | 2006 | 2005 | | Cash payments made during the year4 | | | | Appropriations credited to Special Accounts | | | | Refunds received (net) (FMA s30) | | | | Total charged to special appropriation | | | | Budget estimate5 (list each other legislative provision that refunds have been made under) | | | | Budget estimate5 (FMA s28) | | |
1 Where an Agency has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid, that entity may make the following statement in the notes to their financial statements, in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Entity) has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid.”
2 If the Agency has made repayments using section 28 of the FMA Act or any other legislative provision for repayments required or permitted under law, the entity must disclose the aggregate of all those transactions in this table.
3 Prepare a separate table for each Act, current as at reporting date. In the heading to the table:
4 This item must reflect the total refunds made by the Agency during the year (including s28 refunds if applicable).
5 Agencies must disclose their Portfolio Budget Statement estimate, and where relevant, adjust this estimate by their Portfolio Additional Estimates Statement estimate, for this item. Cash payments are not legally limited to Budget estimates.
Table E: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (section 39 of the FMA Act)1
| Investment of Public Money:<br>Special Appropriations under section 39 of the FMA Act2 | 2006 | 2005 | | Amount invested carried from previous period | | | | Prior year investments redeemed in current year3 | | | | Investments made during the year3, 4 | | | | Redemptions of current year investments4 | | | | Amount invested carried to the next period (sum of the above) | | | | Budget estimate5 | | |
1 Where an Agency has a delegation but has not used section 39 of the FMA Act, that Agency may make the following statement in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Entity) has not used section 39 of the FMA Act.”
2 In the heading to the table:
3 Where a section 39 investment has earnt interest, and that interest is redeemed and reinvested, Agencies must include the amount of interest in this item, and state that this amount includes interest and the amount of interest that is included.
4 This is the gross amount.
5 Agencies must disclose their Portfolio Budget Statement estimate, and where relevant, adjust this estimate by their Portfolio Additional Estimates Statement estimate, for this item. Payments are not legally limited to Budget estimates.
Table F: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriation (Limited Amount)1, 2, 3
1 Prepare a separate table for each Act, as current at reporting date. In the heading to the table:
(a) identify whether the special appropriation is administered or departmental; and
(b) disclose the outcomes it is associated with.
If a departmental special appropriation includes both outputs and capital funding, please provide separate columns for each type.
2 For cross-referencing purposes, where an entity makes disclosures under this Table, and at least one other entity has drawn from the same special appropriation, the entity making disclosures under this Table must name those other entities by making the following statement: “(Other entity/entities) also drew from (special appropriation provision/s).”
3 Agencies must disclose the amount of limited special appropriations that under the terms of the appropriation lapse due to the passage of time.
4 The amount recorded for this item will be the amounts of GST appropriated immediately before payments are made (i.e. cash paid basis), but will need to exclude GST appropriated for payments from Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.
Table G: Disclosure by agent in relation to special appropriations
2C.2 The disclosures required by this Policy for appropriations, including special appropriations, are to be included, in the form specified, regardless of whether the relevant amounts are considered to be material.
2C.3 For special appropriations, a table must be prepared for each Act.
2C.4 For special appropriations, where an appropriation has not been drawn on in the current and the previous year, in place of completing the tables above, an entity may elect to make an abbreviated disclosure that includes all of the following:
(b) the legislative provision that provides the authority for the special appropriation;
(c) the outcomes it is associated with;
(d) the fact that the special appropriation was not drawn on in the current or previous year; and
(e) for limited special appropriations, the balance available.
2C.5 Where there are material variances between the cash payments for the reporting period and the amount appropriated, otherwise authorised or estimated through Budget Estimates, entities should provide an explanation of those variances below the relevant Table.
2C.6 This Policy applies to both departmental and administered items.
Appropriation for refunds required or permitted by law
2C.7 Each Agency must ensure they have a valid appropriation for all amounts drawn from the Consolidated Revenue Fund for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the FMA Act, should be recognised and/or disclosed under their valid appropriation, and as required by Table D of this Policy.
Investment of public money
2C.8 Each entity must recognise and/or disclose all public money invested in authorised investments under section 39 of the FMA Act or surplus funds under sections 18 and 19 of the CAC Act in Table E of this Policy. All money invested under a special account must also be disclosed in accordance with Policy 2E of this Schedule.
2D.1 Entities in the General Government Sector must disclose in the notes the following tables relating to outcomes and outputs:
Table A: Net Cost of Outcome Delivery
3) Cost recoveries are defined in the Commonwealth Cost Recovery Guidelines for Information and Regulatory Agencies, Department of Finance and Administration, and in Definition of Terms of this Schedule.
4) Entities should disclose the nature of these external revenues by major class. Where these include intra- or inter- government charges, such charges should be shown separately.
Table B: Major Departmental Income and Expenses by Output Groups and Outputs
#1 Entities should prepare a separate Table B for each Outcome, with outcomes as specified in the Appropriation Acts relevant to the entity.
Paragraph 12.7 of AAS 29 Financial Reporting by Government Departments requires disclosure of revenues and expenses by ‘major activity’, which includes outputs.
Table C: Major Classes of Administered Income and Expenses by Outcome1
1) Paragraph 12.9 of AAS 29 Financial Reporting by Government Departments requires disclosure of administered revenues and expenses by ‘major activity’.
2) Outcomes are to be as specified in the Appropriation Acts relevant to the entity.
3) The amounts in the total column for administered items must agree to the entity’s totals in the Schedule of Administered Items.
2D.2 Entities must state, in footnotes to these Tables, whether the net costs shown include intra-government costs (e.g. rent paid on Australian Government owned premises or fees for service) that would be eliminated in calculating the actual Budget outcome.
2D.3 Entities preparing these tables must attribute shared items using a basis that most accurately allocates the total cost or income 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.
2D.4 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 outputs or outcomes, based on the date that the Appropriation Act notifying the change received Royal Assent, so that entities report against the original outputs or outcomes up to the date of the change and against the revised outputs or outcomes after that date.
2D.5 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).
2D.6 This Policy applies to both departmental and administered items.
2D.7 The amounts disclosed must be net of refunds and adjustments.
2E.1 Agencies must:
(a) prepare a separate table for each Special Account used during the current year or comparative year; or
(b) apply Clause 2E.3 of this Policy where the Special Accounts have not been used during the current year and comparative year; and
(c) disclose the table/s or disclosure as required by Clause 2E.3 of this Policy, in the notes to the financial statements.
Table A: Special Accounts
| Special Account information (eg account name)1, 2 | 2006 | 2005 | | Balance carried from previous period * | | | | Appropriation for reporting period3 | | | | Costs recovered | | | | GST credits (FMA s30A) | | | | Realised investments | | | | Other receipts (Show each major class)4 | | | | Total Credits | | | | Available for payments | | | | Payments made (Show each major class) 4 | | | | Repayments debited from the Special Account (s 28) | | | | Investments debited from the special account (FMA s39) | | | | Total Debits | | | | Balance carried to the next period * (excluding investment balances – refer Table B) | | | | Represented by: | | | | Cash – transferred to the Official Public Account | | | | Cash – held by the entity | | | | Total balance carried to the next period | | |
* Special Accounts may not have a debit balance at any point.
1) In the heading information, entities should also indicate:
(a) whether the account is administered, departmental or Special Public Money in nature;
(b) the purpose of the Special Account; and
(c) the authority under which the Special Account was established.
[Note: Where a Special Account was established by other Acts, the enabling legislation should also be disclosed.]
2) Where a Special Account’s status has changed during the year (e.g. established, varied, revoked or abolished), the nature and date of effect of each change should be included in the heading information. Where the nature of these changes are significant, consideration should be given as to whether two disclosure tables should be prepared for the “before” and “after” periods.
3) Each current year Appropriation Act should be reported on a separate line in the table and the total amount transferred and reported should agree with the Special Accounts disclosures as required by Policy 2C of this Schedule.
4) Major classes are as per the primary statements in Appendix A of this Schedule. Where legislation directly credits a Special Account with amounts, this table should include a line ‘Amounts credited under the (full name of) Act’. Where interest is credited to a Special Account, this table should include a line ‘Interest amounts credited’.
Table B: Special Accounts Investment of Public Money 1, 2, 3
| Full official title of Special Account: Investment of Public Money under section 39 of the FMA Act | 2006 | 2005 | | Opening balance | | | | Investments made | | | | Interest earned | | | | Transaction charges | | | | Investments realised | | | | Closing Balance | | |
1 If a delegation has been made under section 39 of the FMA Act to the CEO of the Agency in respect of the Special Account, and that delegation has been used, the Agency must disclose the aggregate of all those transactions in this table.
2 Where an Agency has not used section 39 of the FMA Act in respect of the Special Account, that Agency may make the following statement in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Agency) has not used section 39 of the FMA Act in respect of this Special Account.”
3 This Table must reflect investments made under section 39 of the FMA Act by the Agency in respect of this Special Account.
2E.2 Agencies that invest amounts standing to the credit of a special account, using a valid delegation of FMA Act section 39 investment powers, should disclose the net amount invested during the year in the text accompanying the Special Account table(s).
2E.3 Special Accounts which have not been used during the current year and comparative year, regardless of whether they have a nil or positive balance, may make the following disclosure instead of preparing the table at Clause 2E.1 of this Policy:
(a) the Special Account’s title;
(b) whether the account is administered, departmental or Special Public Money in nature;
(c) the purpose of the Special Account;
(d) the authority under which the Special Account was established;
(e) a statement noting the Special Account has not been used during the current year and comparative year; and
(f) the Special Account’s balance.
2E.4 Disclosures required by this Policy are to be included, in the form specified, regardless of whether the relevant amounts are considered to be material.
2E.5 This Policy applies to both departmental and administered items.
Non-Financial Assets
3A.1 Subject to 3A.7, entities must revalue every class of assets that include assets of the types listed below, on the fair value basis ie the revaluation method under AASB 116 Property, Plant and Equipment, or the fair value model under AASB 140 Investment Property, as appropriate:
3A.2 In the absence of an active market the cost basis must be applied to intangible assets. Intangibles shall be carried at fair value where an active market exists.
3A.3 The cost basis must be applied to Specialist Military Equipment, subject to satisfactory compliance with the transitional provisions of AASB 1.
3A.4 Revaluations must be made with sufficient regularity to ensure that the carrying amount of assets does not differ materially from fair value as at reporting date. The frequency of valuations will depend on the significance and volatility in changes to the fair value of the relevant assets.
3A.5 Non-financial assets may be revalued progressively.
3A.6 This Policy applies to both entity and administered assets.
3A.7 A for-profit entity or an Authority that is a university may elect not to apply the requirements at Policies 3A.1 to 3A.5.
Impairment of Non Financial Assets
3A.8 Entities, or parts of entities, other than those whose predominant purpose is to generate net cash inflows, are not cash-generating units for the purpose of AASB 136 Impairment of Assets.
Analysis of Property, Plant and Equipment, and Intangibles
3A.9 Notes to the financial statements must include the following listed tables, where applicable, in accordance with Appendix A:
Table A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment;
Table B: Property, Plant and Equipment Held under Finance Lease;
Table C: Property, Plant and Equipment under Construction;
Table D: Reconciliation of the Opening and Closing Balances of Investment Property;
Table E: Reconciliation of the Opening and Closing Balances of Intangibles; and
Table F: Intangibles under Construction.
Borrowing Costs
3A.10 Borrowing costs are to be expensed as incurred. The Alternative Treatment allowed under AASB 123 is not to be adopted.
3B.1 Where the use of an asset that is recognised in the Balance Sheet and/or Schedule of Administered Items 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 entity, the following must be disclosed:
3B.2 Where the use or holding of an asset is subject to restrictions, the fair value ascribed to that asset should reflect those restrictions.
3B.3 This Policy applies to both entity and administered assets.
3C.1 The financial statements of entities must include a note giving particulars of assets, cash and non-cash, held in trust but not controlled by the entity nor managed on behalf of the Australian Government.
3C.2 A summary of the categories of assets held at the end of the reporting period and the purpose for which they are being held must be disclosed for assets referred to in Clause 3C.1.
3C.3 In relation to cash assets, there must be disclosed, for each significant category, the:
(i) by the entity; and
(ii) in the Official Public Account.
3C.4 In relation to non-cash assets, there must be disclosed, for each significant category:
3D.1 Heritage and cultural items should only be recognised as assets where they meet the asset definition and recognition criteria set out in the AASB Framework for Preparation and Presentation of Financial Statements (Framework).
3D.2 Heritage and cultural assets should be depreciated over the period they will be held and used. Heritage and cultural assets should not be depreciated if there is no foreseeable limit to the period over which they are held and used.
3D.3 When an entity controls or administers heritage and cultural items that are not recognised as assets, the notes to the financial statements must disclose:
3D.4 This Policy also applies to those components of assets that have heritage or cultural value, where these can be separately identified from, and are material in relation to, the asset as a whole.
3D.5 This Policy applies to both entity and administered items where applicable.
4A.1 Contingent liabilities and contingent assets that can be reliably measured must be included in the Schedule of Contingencies, in accordance with Appendix A of this Schedule, except where the probability of a liability or asset being recognised in the future is remote. Equivalent disclosure for administered contingent liabilities and contingent assets must be included in the Schedule of Administered Items.
4A.2 Contingent liabilities and contingent assets must be classified in accordance with the categories in the Schedule of Contingencies. Material remote contingent liabilities and contingent assets must be explained in a note to the financial statements that includes the information referred to in paragraphs 86 and 89 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
4A.3 The reference in paragraph 92 of AASB 137 to ‘entity’ must be read as ‘the entity, another Australian Government entity or the Australian Government as a whole’.
4B.1 Commitments are:
4B.2 The nature, and where quantifiable the amount, of each category of commitments must be disclosed in a Schedule of Commitments in accordance with the tables in Appendix A. Equivalent disclosure for administered commitments must be included in the Schedule of Administered Items.
4B.3 Commitments may be capital, non-capital, payable or receivable.
4B.4 The provisions of this Policy apply to both entity and administered items.
4C.1 This Policy is based on the requirements of AASB 119 Employee Benefits as issued in December 2004. All entities are required to early adopt this version of AASB 119 Employee Benefits.
4C.2 Entities must identify any annual leave that is not expected to be consumed within twelve months after the end of the period in which the employees render the related service and ensure it is discounted in accordance with AASB 119.
4C.3 Entities with less than 1,000 full-time equivalent employees (FTE) may continue to use the shorthand method when calculating long-service leave liability.
4C.4 Entities with more than 1,000 FTE are to undertake their own assessments to estimate the liability for long service leave. The method of doing this would be one of the following:
4C.5 Public Finance Corporations (PFCs), Government Business Enterprises (GBEs) and Air Services Australia can apply any of the three recognition options for actuarial gains and losses for defined benefit plans. All other entities are to apply the “direct to retained profit” option of recognising actuarial gains and losses for defined benefit plans. This is applicable to entity and administered items.
4C.6 Defined benefit post employment plans where the actuarial and investment risk falls to other parties are considered defined contribution plans. Whilst the CSS, PSS Defined Benefit Plans and MSBS are defined benefit plans at the whole-of-government level, agencies contributing to these schemes are to account for these contributions under AASB 119 as if they were defined contribution plans.
4C.7 Entities that have been advised by Finance that they will have an additional employer lump sum contribution should show a liability for this amount at balance date.
4C.8 The new PSS Accumulation Plan is considered a Defined Contribution Plan from the point of view of both agencies and at the whole-of-government level.
4C.9 Plans where the actuarial risk falls on the agency must be accounted for as defined benefit plans.
4C.10 The market yield on long-term government bonds must be referenced when determining a discount rate for discounting purposes.
5A.1 Where restructures have occurred during the reporting period, the financial statements of entities must include a note giving particulars of the restructure.
5A.2 Non-reciprocal transfers of assets and liabilities resulting from a restructure between:
(a) wholly owned Australian Government entities; or
(b) departmental and administered classifications
due to:
(i) an Australian Government decision;
(ii) an Administrative Arrangements Order (AAO);
(iii) an Act of Parliament or a Regulation under an Act; or
(iv) a Written Agreement between the relevant Portfolio Minister(s) and the Finance Minister or the Prime Minister, as appropriate;
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 UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities, Clauses 5A.2(b)(i) to (iv) of this Policy are formal designations of transfers as contributions by or distributions to owners.
5A.3 Paragraphs 7.4, 10.6 – 10. 9 of AAS 29 Financial Reporting by Government Departments apply to all Australian Government agencies.
5A.4 Transfers of administered assets or liabilities between two wholly owned Australian Government entities do not result in any income or expenses. Transfers of administered items must always be adjusted to Administered transfers to or from Government (Restructuring) at their net book value immediately prior to transfer.
5A.5 All other transfers of assets and liabilities from one entity to another must be treated as giving rise to income or expenses in the financial period the transfer occurs.
5A.6 This Policy applies to entity and administered items.
Returns on Capital - Dividends
5B.1 Where legislation provides that a Minister(s) may determine the amount to be paid as a dividend or similar distribution from a wholly-owned Australian Government entity, with or without recommendation or proposal from the
entity, the entity must recognise a liability for that dividend or distribution at the date of the Ministerial determination.
5B.2 Where the entity is required to pay its full profit for the year to the Australian Government, a liability must be recognised for an amount equal to profit for the current year as at the entity’s reporting date.
5B.3 Where any entity is required to pay its profit for the year to the Australian Government after the deduction of certain amounts, a liability for dividend must be recognised if those amounts are known before the date of completion of the financial statements. If these amounts are not known before this date, the entity should instead disclose a contingent liability.
Repayments of Appropriations
5B.4 Where an Agency makes payments 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 entity should account for this by increasing ‘Appropriations Receivable’. Such payments are neither returns on capital nor returns of capital.
Returns of Capital
5B.5 Where an entity relinquishes control of funds which had been recognised as appropriation revenue in a previous year, by making a non-reciprocal payment to the Official Public Account, other than as a dividend (as provided in Clauses 5B.1 to 5B.3 of this Policy, or otherwise), the entity shall account for the payment by debiting ‘Equity’.
5B.6 An entity shall recognise a debit to ‘Equity’, as required by Clause 5B.5 of this Policy, when a departmental appropriation is reduced pursuant to a determination of reduction in accordance with Appropriation Acts, to the extent the entity has not previously recognised a debit entry evidencing control of the appropriation has been relinquished.
Timing of recognition
5B.7 Reductions in ‘Equity’ under Clauses 5B.5 and 5B.6 of this Policy are recognised in the financial statements of the entity:
(a) if they are required by Ministerial direction, at the date of that direction;
(b) if they are reductions to departmental appropriations pursuant to a determination of reduction in accordance with Appropriation Acts, at the date of that direction; or
(c) in all other cases, at the date that payment is made.
6A.1 The financial statements of an entity which administers activities for the Australian Government must include a Schedule of Administered Items and associated Administered Notes:
(a) is in the form prescribed in Appendix A Section 3 of this Schedule;
(b) includes the Administered Reconciliation Table in accordance with Clause 6A.3 of this Policy;
(c) includes disclosures in relation to accounting policies and financial instruments in accordance with the relevant accounting standards, and
(d) uses background shading for the Schedule of Administered items and Administered Notes.
The Australian Office of Financial Management (AOFM) is excluded from the requirement to present a ‘Schedule of Income Administered on Behalf of Government’ and a ‘Schedule of Expenses Administered on Behalf of Government’ and associated disclosures as presented in Appendix A, Section 3. AOFM should instead adhere to the income statement reporting requirements contained in AASB 101 Presentation of Financial Statements.
6A.2 The Schedule of Administered Items and Administered Notes must:
(a) to the extent that it is applicable, comply with Policy 1B of this Schedule;
(b) comply with all applicable requirements of this Schedule; and
(c) state 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 Australian Government.
6A.3 Administered Reconciliation Table
| Note | 2006 | 2005 | |
|---|---|---|---|
| Opening administered assets less administered liabilities at 1 July | |||
| Plus Administered income | |||
| Less Administered expenses | |||
| Administered transfers to/from Australian Government:<br>Appropriation Transfers from OPA:<br>Annual Appropriations Administered expenses<br>Administered assets and liabilities Appropriations<br>Special Appropriations (limited)<br>Special Appropriations (unlimited)<br>Transfers to OPA<br>Restructuring<br>Transfers to other Entities (Finance – Whole of Government)<br>Transfers from other Entities (Finance – Whole of Government) | |||
| Administered revaluations taken to/from reserves | |||
| Currency translation gain/loss | |||
| Changes in accounting policies | |||
| Closing administered assets less administered liabilities |
6B.1 “Administered investment” is defined for the purpose of this Policy as an investment by the Australian Government in a subsidiary, associate or joint venture that is managed by an entity on behalf of the Australian Government.
6B.2 Administered investments, other than those held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, should be measured at fair value. If it is necessary to use cost or deemed cost, in accordance with paragraph 19 of AASB 1, the fair value approximation of cost to be used is fair value at 30 June 2005 as adjusted for known changes, such as changes in equity, during the year ended 30 June 2006. For the purposes of paragraph 19 of AASB 1, the transition to AEIFRS and the changes in valuation requirements are considered to be a significant event.
Impairment
6B.3 Administered investments, other than those held for sale or carried at fair value, are subject to impairment under AASB 136 Impairment of Assets.
6B.4 For the purposes of AASB 136, the depreciated replacement cost of an administered investment is equal to the Commonwealth’s share of the net assets of the investee measured in accordance with the Australian Accounting Standards applicable to the investee.
Administered Investments Held for Sale
6B.5 Administered investments are subject to the measurement provisions of AASB 5 when they become held for sale as defined in that Standard.
6B.6 The costs of sale of an administered investment are expensed as incurred, regardless of whether the investment meets the criteria to be ‘held for sale’ in AASB 5. Costs of sale are not added to the carrying amount of administered investments.
6B.7 The following particulars must be disclosed in the administered notes for each sale of an administered investment:
7A.1 Disclosures under this Policy must be made regardless of whether the relevant amounts are considered to be material.
7A.2 The financial statements must include a note showing any expenses and/or liabilities 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);
(b) waivers of debt owing to the Australian Government, (being amounts that the entity would, but for the waiver, have been entitled to receive on behalf of the Australian Government);
(i) pursuant to subsection 34(1) of the FMA Act; and
(ii) pursuant to other legislation, which must be specified;
(c) payments under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme;
(d) payments under approved ex-gratia programmes, the nature of which must be identified; and
(e) payments in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act).
7A.3 The note must disclose the number of cases and total amount expensed during the reporting period under each of the mechanisms specified at Clause 7A.2. 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.
7A.4 The note must disclose the number and aggregate present value amount of those cases relating to any provisions at the end of the reporting period under each of the mechanisms specified at Clause 7A.2. 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.
7A.5 Each disclosure required by this Policy must be cross-referenced with other relevant notes, and/or schedules, as applicable.
7A.6 This Policy applies to departmental and administered items, which must be distinguished in the relevant note.
7B.1 Disclosures under this Policy must be made by Australian Government entities. For-profit entities are exempt from this Policy, as they are already required to disclose information in accordance with AASB 124 Related Party Disclosures.
7B.2 The following must be disclosed in the notes to the financial statements of an Authority:
7B.3 The following information must be disclosed in the notes to the financial statements in regard to the remuneration of senior executives:
(a) the aggregate remuneration of all senior executives of the entity whose remuneration for the financial year is $130,000 or more; and
(b) the number of managers of the entity whose total remuneration for the financial year falls within each successive $15,000 band, commencing at $130,000;
being remuneration received or due and receivable, directly or indirectly, from the entity or any related party in connection with the management of the affairs of the entity or any of its subsidiaries, whether as a senior executive or otherwise.
7B.4 The following information must be disclosed in the notes to the financial statements of an economic entity where an Agency or Authority is the parent entity in the economic entity:
(a) the aggregate remuneration of all senior executives of the economic entity whose remuneration for the financial year is $130,000 or more; and
(b) the number of managers of the economic entity whose total remuneration for the financial year falls within each successive $15,000 band, commencing at $130,000;
being remuneration received or due and receivable, directly or indirectly, from the entities in the economic entity or a related party in connection with the management of the affairs of the entities in the economic entity, whether as a senior executive or otherwise.
7B.5 In addition to all other requirements of this Policy, the aggregate amount of separation and redundancy expenses for senior executives should be disclosed separately.
7C.1 Disclosures under this Policy must be made regardless of whether the relevant amounts are considered to be material.
7C.2 The financial statements of an entity must include a note giving particulars of the remuneration of auditors for:
(a) auditing the financial statements for that reporting period; and
(b) any other services provided during that reporting period.
7C.3 The fair value of any of the services provided free of charge by the Auditor-General must be shown in the notes to the financial statements. For the purpose of this Policy, performance audits are not taken to be services provided to an entity.
7C.4 Authorities must disclose the extent to which auditors’ remuneration is paid to an auditor other than the Auditor-General.
7D.1 The financial statements of an Authority must include a note giving particulars of any investments held that are not covered by paragraphs 18(3)(a)-(c) of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
7D.2 Details should include the statutory basis for holding additional investment(s) outside those allowed under paragraphs 18 (3)(a)-(c) of the CAC Act, including whether an approval has been received by the authority under paragraph 18(3)(d) of the CAC Act.
8A.1 AEIFRS give entities a choice over whether to restate comparative (i.e. 2004-05) information on financial instruments in the first financial report prepared under AEIFRS. For consistency across government, this Policy prohibits restatement. Instead, entities should make the additional disclosures required by paragraph 36A of AASB 1 First Time Adoption of International Financial Reporting Standards viz:
Public Finance Corporations (PFCs) may choose not to apply this policy, if by its non-application, more useful financial information results.
8A.2 On initial adoption of AEIFRS, an entity must classify all financial instruments that are traded in markets as either:
where these classifications are permitted by AASB 139 Financial Instruments: Recognition and Measurement, unless it is a financial liability resulting from the issue or reissue of Australian currency notes, in which case it should be classified in accordance with AASB 139. Where an accounting standard or other financial framework document requires an entity to make a designation to adopt a particular accounting treatment, a designation made during the 2005-06 financial year is deemed to be effective on 1 July 2005 unless stated otherwise or could not be effective on that date in the particular circumstances. The designation of financial instruments by agencies will have the affect of designating those instruments in the consolidated whole of government accounts.
8A.3 Where an entity first recognises, after the beginning of the first AEIFRS reporting period, a financial instrument that is traded in a market, the entity must classify it as set out in clause 8A.2 of this Policy.
8A.4 All impairment losses on financial instruments under AASB 139 should be debited to a separate account, rather than being debited directly against the carrying amount of assets. A separate account must be maintained for each class of financial asset.
8A.5 Where AASB 139 allows entities to choose between:
entities should adopt the former treatment in all cases.
8A.6 Where an entity has held derivative financial instruments at any time during the period, it shall disclose:
Note: Entities’ ability to enter into hedging or derivative arrangements is bound by their legislative framework and relevant government policies.
Section 1: For-Profit Reporting Entities
Section 2: Not-For-Profit Reporting Entities
Section 3: Administered Reporting
Income Statement for For-Profit Reporting Entities
Balance Sheet for For-Profit Reporting Entities
as at ____________
| ASSETS |
|---|
| Current Assets |
| Cash and cash equivalents (note x) |
| Receivables (note x) |
| Inventories (note x) |
| Intangibles (note x) |
| Tax Assets (note x) |
| Investments accounted for under the equity method (note x) |
| Investments under s.18 & s.19 of CAC Act (note x) |
| Other investments (note x) |
| Accrued revenue (note x) |
| Other current assets (note x) |
| Assets held for sale (note x) |
| Total Current Assets |
| Non-Current Assets |
| Receivables (note x) |
| Land and buildings (note x) |
| Infrastructure, plant and equipment (note x) |
| Heritage and cultural assets (note x) |
| Investments accounted for under the equity method (note x) |
| Investment Property (note x) |
| Investments under section 18 CAC Act, section 19 CAC Act (note x) |
| Other investments (note x) |
| Inventories (note x) |
| Intangibles (note x) |
| Deferred tax assets |
| Biological assets (note x) |
| Other non-current assets (note x) |
| Assets held for sale (note x) |
| Total Non-current Assets |
| Total Assets |
| LIABILITIES |
| Current Liabilities |
| Payables (note x) |
| Interest bearing liabilities (note x) |
| Provisions (note x) |
| Tax liabilities (note x) |
| Other current liabilities (note x) |
| Liabilities included in disposal groups held for sale |
| Other non-current liabilities |
| Total Current Liabilities |
| <br> <br> |
Balance Sheet for For-Profit Reporting Entities (continued)
Statement of Cash Flows for For-Profit Reporting Entities
for the period ended __________
Operating Activities 2006 2005
Net Cash From or (Used by) Operating Activities
Proceeds from sales of property, plant and equipment
Proceeds from sales of financial instruments
Repayments of loans made
Investments (section 18 & section 19 CAC Act)
Purchase of property, plant and equipment
Purchase of financial instruments
Loans made
Investments (section 18 & section 19 CAC Act)
Net Cash From or (Used by) Investing Activities
Proceeds from issuing financial instruments
Proceeds from loans
Repayments of debt
Net Cash From or (Used by) Financing Activities
Cash at the beginning of the reporting period
Effect of exchange rate movements on cash at the beginning of the reporting period
Cash at the End of the Reporting Period
STATEMENT of CHANGES in EQUITY for For-Profit Reporting Entities
SCHEDULE OF COMMITMENTS for For-Profit Reporting Entities
As at________________________
Schedule of Contingencies for For-Profit Reporting Entities
Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note [specify number]
Income 2006 2005
Corporation Law fees
License fees
Other goods and services
Bills receivable
Other revenues
Net gains from sale of assets
Other net gain on sale of assets
Reversal of previous asset write-downs
Assets revaluation increments
Reversal of impairment losses
Resources received free of charge
Expenses 2006 2005
Wages and salaries
Workers compensation premiums and claims
Other employee expenses
Note: Separation and redundancy payments must exclude any benefits that would have been accrued and payable if redundancy had not occurred (e.g. accrued leave entitlements and lump sum superannuation payments).
Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.
Local governments
Individuals
Depreciation and amortisation
Finance Costs
Other finance costs
Write-down and impairment of assets
Revaluation decrements – Non-financial Assets
Net foreign exchange losses
Net losses from sale of assets
Other net losses from sale of assets
Other expenses
Guarantees, undertakings and indemnities
Assets 2006 2005
Trust Accounts
Deposits made under section 18 CAC Act; section 19 CAC Act
Other cash
Interest and dividends
Patents, trade marks, brand names, licenses
Purchased
Internally developed
Intangibles under development
Goodwill
Tax Assets
Investments Accounted for under the Equity Method
Investments in associates
Investments in joint ventures
Investments under section 18 CAC Act; section 19 CAC Act (Non- cash)
Prescribed by the regulations
Other Investments
Gold
Accrued Revenue
Other Current Assets
Land
Infrastructure, Plant and Equipment
Infrastructure, plant and equipment (disclosed by class)
Other Non-Current Assets
Assets held for sale
Liabilities
Other current liabilities
Other non-current liabilities
Debentures and unsecured notes
Bonds
Maturity schedule must be included for total loans showing amounts payable within:
Leave
Workers’ compensation
Other employee provisions
Tax Liabilities
Current income tax
Deferred income tax
Appendix A
Income Statement for Not-For-Profit Reporting Entities
Balance Sheet for Not-For-Profit Reporting Entities
as at ____________
Cash Flow STATEMENT for Not-For-Profit Reporting Entities
for the period ended __________
Operating Activities 2006 2005
Financing costs
Net Cash From or (Used by) Operating Activities
Proceeds from sales of property, plant and equipment
Proceeds from sales of financial instruments
Repayments of loans made
Investments under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act
Purchase of property, plant and equipment
Purchase of financial instruments
Loans made
Investments under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act
Net Cash From or (Used By) Investing Activities
Appropriations - Contributed equity
Proceeds from issuing financial instruments
Proceeds from loans
Repayments of debt (including finance lease principal)
Net Cash From or (Used by) Financing Activities
Cash at the beginning of the reporting period
Effect of exchange rate movements on cash at the beginning of the reporting period
Cash at the End of the Reporting Period
STATEMENT of CHANGES in EQUITY for Not-For-Profit Reporting Entities
SCHEDULE OF COMMITMENTS for Not-For-Profit Reporting Entities
As at________________________
Schedule of Contingencies for Not-For-Profit Reporting Entities
Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note [specify number]
Income
Revenue from Government
Appropriations:
Departmental Outputs
Departmental Special Appropriations
License fees
Other goods and services
Bills Receivable
Other revenue
Reversal of previous asset write-downs
Assets revaluation increments
Reversal of impairment losses
Net gain from sale of assets
Other net gain from sale of assets
Resources received free of charge
Expenses 2006 2005
Wages and Salaries
Workers compensation premiums and claims
Other Employee expenses
Note: Separation and redundancy payments must exclude any benefits that would have been accrued and payable if redundancy had not occurred (e.g. accrued leave entitlements and lump sum superannuation payments).
Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.
Depreciation and amortisation
Finance Costs
Other finance costs
Write-down and impairment of assets
Revaluation decrements Non-financial Assets
Net foreign exchange losses
Net losses from sale of assets
Other net losses from sale of assets
Other losses
Guarantees, undertakings and indemnities
Assets
Trust Accounts
Deposits made under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act
Other cash
Investments Accounted for under the Equity Method
Investments in associates
Investments in joint ventures
Investments under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act (Non-cash)
Prescribed by the FMA regulations
Other Investments
Gold
Tax Assets
Accrued Revenue
Other Financial Assets
Other financial assets
Land
Infrastructure Plant and Equipment
Infrastructure, plant and equipment (disclosed by class)
Patents, trademarks, brand names and licences
Purchased
Internally developed
Intangibles under development
Goodwill
Other Non-Financial Assets
Other non-financial assets
Assets held for sale
Liabilities
Public Sector
Private sector not for-profit entities
Private sector for-profit entities
Interest payable
Maturity schedule must be included for total loans showing amounts payable within:
Maturity schedule must be included for total leases showing amounts payable within:
Leave
Workers’ compensation
Other provisions
Table 3A.9 A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment.
Table 3A.9 B: Property, Plant and Equipment Held under Finance Lease.
| Item<br> | Land<br> <br> <br> <br>($’000) | Investment property<br> <br> <br>($’000) | Buildings<br> <br> <br> <br>($’000) | Specialist military equipment<br> <br>($’000) | Other infra-structure, plant and equipment<br>($’000) | Heritage and cultural assets<br> <br>($’000) |
|---|---|---|---|---|---|---|
| As at 30 June (current year) | ||||||
| Gross value | ||||||
| Accumulated deprecation/amortisation | ||||||
| Closing Net book value | ||||||
| As at 30 June (previous year) | ||||||
| Gross value | ||||||
| Accumulated deprecation/amortisation | ||||||
| Closing Net book value |
Table 3A.9 C: Property, Plant and Equipment under Construction.
| Item<br> | Buildings<br>($’000) | Specialist military equipment<br>($’000) | Other infra-structure, plant and equipment<br>($’000) |
|---|---|---|---|
| Carrying amount at 30 June (current year) | |||
| Carrying amount at 30 June (previous year) |
Table 3A.9 D: Reconciliation of the Opening and Closing Balances of Investment Property
| Item<br> <br> | 2005<br>($’000) | 2006<br>($’000) | | As at 1 July (previous year) | | | | Additions: | | | | by acquisition | | | | by subsequent expenditure | | | | Disposals and property held for sale | | | | Net gain (loss) from fair value adjustments | | | | Net foreign currency exchange differences | | | | Transfers | | | | Other changes | | | | As at 30 June (current year) | | |
Table 3A.9 E: Reconciliation of the Opening and Closing Balances of Intangibles1.
Table 3A.9 F: Intangibles under Construction1.
| Item<br> | Computer software internally developed<br> <br> <br>($’000) | Computer software purchased<br> <br> <br> <br>($’000) | Other intangibles internally developed<br> <br> <br>($’000) | Other intangibles purchased<br> <br> <br> <br>($’000) |
|---|---|---|---|---|
| Carrying amount at 30 June (current year) | ||||
| Carrying amount at 30 June (previous year) |
Appendix A
Income Administered on Behalf of Government
for the period ended ___________________
Taxation
Income tax (note x)
Indirect tax (note x)
Other taxes, fees and fines (note x)
Total Taxation
Non-Taxation
Goods and services (note x)
Interest (note x)
Dividends (note x)
Other sources of non-taxation revenues (note x)
Rents (note x)
Royalties (note x)
Total Non-Taxation
Total Revenues Administered on Behalf of Government
Net foreign exchange gains (note x)
Net gain from sale of assets (note x)
Other gains (note x)
Total Gains Administered on Behalf of Government
Total Income Administered on Behalf of Government
Expenses Administered on Behalf of Government
for the period ended _______________________
Grants (note x)
Subsidies (note x)
Personal benefits (note x)
Employees (note x)
Suppliers (note x)
Depreciation and amortisation (note x)
Write-down and impairment of assets (note x)
Interest (note x)
Losses
Net foreign exchange losses (note x)
Net loss from sale of assets (note x)
Other losses (note x)
Total Expenses Administered on Behalf of Government
Assets Administered on Behalf of Government
as at ___________________
Financial Assets
Cash and cash equivalents (note x)[Note this can include Investments including (section 39 FMA Act)
Receivables (note x)
Investments including section 39 FMA Act
Accrued revenues (note x)
Other financial assets (note x)
Total Financial Assets
Non-Financial Assets
Land and buildings (note x)
Infrastructure, plant and equipment (note x)
Heritage and cultural assets (note x)
Investment Properties (note x)
Inventories (note x)
Intangibles (note x)
Biological Assets (note x)
Assets held for sale (note x)
Total Non-Financial Assets
Total Assets Administered on Behalf of the Government
Liabilities Administered on Behalf of Government
as at ___________________
Australian Government Securities (note x)
Loans (note x)
Leases (note x)
Deposits (note x)
Overdraft
Total Interest Bearing Liabilities
Employees (note x)
Taxation refunds provided
Australian currency on issue
Other Provisions (note x)
Total Provisions
Suppliers (note x)
Grants and subsidies (note x)
Borrowing Costs
Personal benefits payable
Taxation refunds due
Other payables (note x)
Total Payables
Liabilities included in disposal groups held for sale
Total Liabilities Administered on Behalf of the Government
Administered Cash Flows
for the period ended _________
Operating Activities
Indirect tax
Other taxes, fees and fines
Sales of goods
Rendering of services
Grant payments
Interest paid
Subsidies paid
Personal benefits
Net Cash from Operating Activities
Proceeds from sales of property, plant and equipment and intangibles
Proceeds from sales of equity instruments
Proceeds from sales of investments
Repayments of advances
Transfers from other entities
Purchase of property, plant and equipment and intangibles
Purchase of equity instruments
Advances and loans made
Transfers to Other Entities
Net Cash from Investing Activities
Administered Cash Flows continued 2006 2005
Proceeds from borrowing
Cash from Official Public Account
Net repayment of borrowings
Cash to Official Public Account
Net Cash from Financing Activities
Cash at beginning of reporting period
Cash from Official Public Account for:
Appropriations
Special Accounts
Transfer from other entities (Finance – Whole Of Government)
Cash to Official Public Account for:
Appropriations
Special Accounts
Transfers to Other Entities (Finance – Whole Of Government)
Effect of exchange rate movements on cash at beginning of reporting period
Cash at End of Reporting Period
Administered Commitments
as at _____________
Administered Contingencies
Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note (specify number)
Income Administered on Behalf of Government[2]
Taxation Revenue
Income Tax
Individuals and other withholding tax:
Gross income tax withholding
Gross other individuals
Medicare levy
Less Refunds
Total individuals and other withholding tax
External companies (including tax on realised capital gains)
Superannuation funds
Contributions and earnings (including tax on realised capital gains)
Surcharge
Total superannuation funds
Petroleum resource rent tax
Indirect Tax
GST
Excise duty (includes petroleum products and crude oil)
Other excise
Total excise duty revenue
Customs duty
Other Taxes, Fees and Fines
Fringe benefits tax
Luxury car tax
Wine equalisation tax
Agricultural production taxes
Other taxes
Non –taxation revenue
Goods and Services
Corporations Law fees
Licence fees
Local government
Australian Government Entities
Bills receivable
Other Interest
Australian Government Entities
Other sources of non-taxation revenue
Industry contributions
Indexation of HECS loans
Net gain from sales of assets
Asset sales program (Finance)
Assets now recognised
Expenses Administered on Behalf of Government[3]
Local governments
Subsidies
Payable to related entities
Personal Benefits
Direct
Indirect
Wages and salaries
Workers compensation
Other employee expenses
Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.
Depreciation and Amortisation
Write Down and Impairment of Assets
Revaluation decrements Non-financial assets
Australian Government Securities
Loans Leases
Other Interest Payments
Taxation Overpayments
Other Expenses
Losses from derivative financial instruments
Guarantees, undertakings and indemnities met
Net Foreign Exchange Losses
Net Gain from sale of Assets
Asset sales program (Finance)
Other losses
Assets Administered on Behalf of Government[4]
Financial Assets
Deposits under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act
Official Public Account (Finance)
Sales tax
Excise duty
Customs duty
Goods and services tax
Other taxes, fees and fines
Recoveries of benefit payments
Advances
State and Territory
HECS
Interest and Dividends
Gold holdings
International money fund quota
Australian Government companies
Associated companies (equity method)
Other investments (Non-cash) including section 39 FMA Act; sections 18 & 19 CAC Act
Prescribed by the regulations
Other financial assets
ADMINISTERED –Note Disclosure
Non–Financial Assets
Land
Infrastructure, Plant and Equipment
Other Infrastructure, plant and equipment
Heritage assets
Cultural assets
Other Non-Financial Assets
Deferred expenditure
Future income tax benefit
Other non-financial assets
Liabilities Administered on Behalf of Government[5]
Australian Government Securities
Treasury bonds
Treasury notes
Treasury indexed bonds
Unamortised net premiums on borrowings
Other Australian Government Securities
Debentures and notes
(Maturity schedule must be included for total loans showing amounts payable within:
One year or less;
From one to five years; and
More than five years.)
Finance lease liabilities as at the reporting date are reconciled to the lease liability as follows:
Minimum lease payments
Less future finance charges
Exchange settlements Funds
Drawing accounts held with the Reserve Bank of Australia
State governments
Moneys held in trust
Foreign governments
Other deposits
Other Interest Bearing Liabilities
Swap principal payable
Amounts outstanding under repurchase agreements
Finance lease incentives
Special reserve- International Monetary Fund special drawing rights
Inscribed stock – face value
Other Provisions
Accrued expenses
Provision for interest on overpayment of taxes
Customs rebates
Restructuring
Other creditors
Grants and Subsidies
Public sector –
Private sector –
Not For-Profit entities
For-Profit entities
Other Payables
Interest payable
[1] Australian Accounting Standard AAS 29 ‘Financial Reporting by Government Departments’ paragraphs 6.3.11 and 6.3.12.
[2] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.
[3] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.
[4] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.
[5] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
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Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005)
I, NICK MINCHIN, Minister for Finance and Administration, make these Orders under subsection 63 (1) of the Financial Management and Accountability Act 1997.
Dated 15 February 2006
Nick Minchin
Minister for Finance and Administration
1 Name of Orders
These Orders are the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005).
Notes:
2 Commencement
These Orders commence on 1 July 2005.
3 Financial statements for reporting periods ending on or after 1 July 2005
For subsection 49 (2) of the Financial Management and Accountability Act 1997, Schedule 1 sets out the requirements for the preparation of annual financial statements for reporting periods ending on or after 1 July 2005.
Note:
Schedule 1 is identical to Schedule 1 to the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005). 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 2005.
Schedule 1: Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2005 (Black Letter Policy and Appendix A Only)
| AAS | Australian Accounting Standards<br> |
|---|---|
| AASB | Australian Accounting Standards Board<br> |
| Active Market | A market where all the following conditions exist:<br> the items traded within the market are homogenous; willing buyers and sellers can normally be found at any time; and the prices are available to the public.<br> (AASB 138 para. 8)<br> |
| Administrative Arrangements Orders (AAOs)<br> <br> | The functions and activities of the Government are administered in accordance with AAOs, issued from time to time by the Government and signed by the Governor-General. The AAOs establish the principal matters or government outcomes to be dealt with by each Department of State, and the Acts of Parliament to be administered by each portfolio Minister.<br> |
| AEIFRS | Australian Equivalents to International Financial Reporting Standards<br> |
| Agency | An Agency is as defined in section 5 of the Financial Management and Accountability Act 1997.<br> |
| Amortisation | The systematic allocation of the depreciable amount of an intangible asset over its useful life.<br>(AASB 138 para. 8)<br> |
| Resources Received Free of Charge | Includes any economic benefits which are received for no or nominal consideration.<br> |
| Australian Government | All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.<br> |
| Authority<br> | A Commonwealth authority as defined in section 7 of the Commonwealth Authorities and Companies Act 1997.<br> |
| Business Operations | Activity or activities 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 to persons or other entities for market prices and are not ‘primarily’ funded by appropriations.<br> |
| Carrying Amount | The amount at which an asset or liability is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses.<br>(AASB 116 para. 6)<br> |
| 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.<br>(AASB 5 Appendix A)<br> |
| Charter of Budget Honesty | The Charter of Budget Honesty Act 1998 provides a legislative framework for the conduct and reporting of fiscal policy. Broadly the Charter (Schedule 1 of the Act) requires the Government’s fiscal strategy to be based on the principles of sound fiscal management. In addition, the Secretaries of the Department of Finance and Administration and the Department of the Treasury are to publicly release a pre-election fiscal and economic outlook report if a general election is called and cost any publicly announced polices submitted by the Government or Opposition if so requested.<br> |
| Commonwealth | The legal entity of the Commonwealth of Australia, created by the Australian Constitution.<br> |
| Consolidated Financial Statements (CFS) | The Australian Government’s Consolidated Financial Statements (CFS) is the annual, end-of-year financial report prepared under section 55 of the Financial Management and Accountability Act 1997, and in accordance with Australian Accounting Standards, including AAS31 Financial Reporting by Governments. The CFS shows the consolidated results for the Australian Government includes consolidated results for all controlled entities as well as disaggregated information on the various sectors of government (general government, public non-financial corporations and public financial corporations).<br> |
| 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 entity.<br> |
| 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 entity; or<br>(b) a present obligation that arises from past events but is not recognised because:<br>(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.<br>(AASB 137 para. 10)<br> |
| Cost | As defined in AASB 116, Property, Plant and Equipment, and amounts deemed as cost as permitted by AASB 1, First-time Adoption of Australian Equivalents to International Financial Reporting Standards, and other relevant standards.<br> |
| Cost Recoveries | All costs recovered by the Australian Government for provision of goods and services to the private and non-government sectors.<br>Cost recoveries do not include: intra-government charging, government business enterprises, competitively neutral commercial arrangements, taxes, loans, asset sales or other property related incomes, fines and penalties, one-off specific policy measures, industry-government partnerships or statutory marketing levies, fees and charges by courts and tribunals.<br> |
|---|---|
| Costs to sell | The incremental costs directly attributable to the disposal of an asset (or disposal group) excluding finance costs and income tax expense.<br>(AASB 5 Appendix A)<br> |
| Depreciable Amount<br> <br> | The cost of an asset, or other amount substituted for cost, less its residual value<br>(AASB 116 para. 6)<br> |
| Depreciated Replacement Cost<br> | The current cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.<br>(AASB 136 para. 6)<br> |
| 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.<br> |
| Entity | As described in Clause 1B.1 of this document.<br> |
| Entity Assets | In the Australian Government context, assets that are controlled by an entity, rather than merely administered on behalf of Government.<br> |
| Fair Value | The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.<br>(AASB 116 para. 6)<br> |
| FinanceBriefs | These provide clarification and guidance on the Government’s accounting and financial reporting policies as required throughout the year and are prepared by Finance. |
| 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.<br>(AASB 117 para. 4)<br> |
|---|---|
| Financial Instrument | Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.<br>(AASB 132 para. 11)<br> <br> <br> |
| Financial Statements | Include:<br> the statements, schedules and notes required by these Orders; and 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);<br>prepared in relation to:<br>- the Agency or Authority; and<br>- where the Agency or Authority is a parent entity—the economic entity comprising the Agency or Authority and its subsidiaries.<br> |
| For-Profit Entities | Refer to Appendix A of this document. <br> |
| General Government Sector (GGS)<br> | The GGS is a Government Finance Statistics (GFS) concept for entities that fulfil the functions of government as their primary activity. The primary function of this sector is to provide public services, which are mainly non-market in nature, and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies.<br> |
| Government Business Enterprises (GBE) | A Commonwealth authority or Commonwealth company that is prescribed as a GBE in regulations under the Commonwealth Authorities and Companies Act 1997.<br> |
| Grants<br> | Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. (AASB 120 para.3).<br> |
| Heritage Buildings | Heritage buildings are those buildings, monuments or structures that are (or are likely to become) symbolic of government, public activities, historical significance or cultural association (eg. Australian Government buildings listed on the National Trust.)<br> |
| Impairment Loss | The amount by which the carrying amount of an asset exceeds its recoverable amount.<br>(AASB 116 para. 6)<br> |
| Intangible Asset | An identifiable non-monetary asset without physical substance.<br>(AASB 138 para. 8)<br> |
| Market Buying Price<br> | The amount for which an asset with similar service potential could be bought by a knowledgeable, willing buyer from a knowledgeable, willing seller in an arms-length transaction at current prices plus the buyer’s transaction costs. This equates to current market value plus the buyer’s transaction costs.<br> |
| Market Selling Price | The price that a willing seller would accept from a knowledgeable, willing buyer for an asset in an arms-length transaction at current prices. This does not include transaction costs.<br> |
| Net Selling Price | Refer to Appendix B of this document.<br> |
| Not-For-Profit Entities | An entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent and each of the entities that it controls.<br>(AASB 116 para. AUS 6.1)<br> |
| Operating Lease | A lease other than a finance lease.<br>(AASB 117 para. 4)<br> |
| 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.<br> |
| Preservation | Work performed to maintain an item in its existing state.<br> |
| Progressive Revaluation | Revaluation of assets within a class, conducted in a systematic manner over a number of years.<br> |
| Recoverable Amount | Means the higher of an asset’s fair value less costs to sell and its value in use.<br>(AASB 5 Appendix A)<br> |
| Reproduction Cost | The cost of replicating an existing asset.<br> |
| Reserves<br> | Include:<br> amounts set aside out of profits; or other gains or increments not reflected in the profit or loss (or surplus or deficit) (such as gains on revaluation of assets).<br> |
| Revaluation | The act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a partic |
This is an opening excerpt, not the complete document.