1 Name of Orders

  These Orders are the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2008).

Notes:

• These Orders are in relation to the preparation of financial statements.
• Other matters relating to Commonwealth Authorities are dealt with in other Orders made by the Minister under subsection 48 (1) of the Commonwealth Authorities and Companies Act 1997.

2 Commencement

  These Orders commence on 1 July 2008.

3 Financial statements for reporting periods ending on or after 1 July 2008

  Schedule 1 sets out the requirements for the preparation of financial statements for the reporting periods ending on or after 1 July 2008 for:

(a)  sub item 2(1) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997;

(b)  subsection 19(3) of the Anglo-Australian Telescope Agreement Act 1970;

(c)  subsection 47(1) of the High Court of Australia Act 1979;

(d)  subsection 43(3) of the Natural Heritage Trust of Australia Act 1997; and

(e)  subsection 32(a)of the Albury-Wodonga Development Act 1973.

Note:

• Schedule 1 is identical to Schedule 1 to the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2008) to achieve uniformity in financial reporting across the Australian Government public sector. There are, however, certain terms, requirements and references in Schedule 1 that apply to Commonwealth Authorities and not to Agencies, and vice‑versa.

Schedule 1 Finance Minister’s Orders for Financial Reporting for reporting periods ending on or after 1 July 2008.

SCHEDULE 1

finance minister’s orders for financial reporting

REQUIREMENTS FOR THE PREPARATION OF FINANCIAL STATEMENTS OF AUSTRALIAN GOVERNMENT ENTITIES FOR REPORTING PERIODS ENDING ON OR AFTER 1 JULY 2008

CONTENTS

Part A INTRODUCTION...............................................4

1 Legislative Authority...............................................4

2 Structure........................................................4

3 Further Information...............................................4

Part B DEFINITIONS AND ABBREVIATIONS............................5

4 Definitions.......................................................5

5 Abbreviations...................................................14

Part C  APPLICATION AND PRESENTATION...........................16

6 Commencement..................................................16

7 Applicable Entities...............................................16

8 Authoritative Requirements........................................16

9 Financial Reporting Structure and Form..............................17

10 Simplified Reporting..............................................17

11 Early Adoption of Accounting Pronouncements.........................18

12 Materiality and Information Disclosure................................18

13 Rounding Off....................................................19

14 Certificates.....................................................19

15 Departmental and Administered Items: Classification and Reporting.........20

16 Exemptions from this Schedule......................................20

17 Approved Exemptions.............................................21

Part D INCOME STATEMENT (Excluding Appropriations).................23

18 Income – General Information (Excluding Appropriations)................23

19 Expenses – General Information.....................................23

20 Borrowing Costs.................................................23

21 Operating Leases.................................................23

22 Director/Executive Remuneration....................................23

23 Remuneration of Auditors..........................................24

24 Competitive Neutrality............................................24

Part E BALANCE SHEET.............................................26

30 Financial Assets – General Information................................26

31 Receivables for Statutory Charges....................................26

32 Investment of Surplus Money by Authorities............................26

33 Valuation of Non-Financial Assets....................................26

34 Impairment of Non-Financial Assets..................................27

35 Analysis of Non-Financial Assets.....................................27

37 Heritage and Cultural Assets........................................27

38 Assets Held in Trust..............................................28

39 Joint Ventures...................................................28

40 Liabilities – General Information................Error! Bookmark not defined.

40 Liabilities Relating to Dividends.....................................29

41 Provisions......................................................29

42 Employee Benefits................................................29

43 Measurement and Disclosure of Post Employment Plans...................30

44 Financial Instruments.............................................30

Part F OTHER FACE STATEMENTS AND SCHEDULES..................32

50 Statement of Changes in Equity......................................32

60 Cash Flow Statement..............................................32

75 Schedule of Administered Items.....................................32

80 Contingencies...................................................32

81 Commitments...................................................33

Part G ADMINISTERED REPORTING..................................34

85 Administered Reporting – General Information.........................34

86 Income and Expenses Administered On Behalf of Government..............35

87 Administered Investments..........................................35

88 Administered Investments Held for Sale...............................35

89 Impairment of Administered Assets..................................36

90 Liabilities Administered on Behalf of the Government....................36

91 Transfer Payments...............................................36

Part H RESTRUCTURES..............................................37

92 Restructures....................................................37

Part I APPROPRIATIONS............................................38

100 Recognition of Appropriations – General Information....................38

101 Recognition of Appropriations - Departmental..........................38

102 Recognition of Appropriations - Administered..........................41

103 Recognition of Appropriations – CAC Entities..........................42

104 Disclosure of Appropriations........................................42

Part J OTHER DISCLOSURES........................................50

120 Special Accounts.................................................50

121 Reporting of Outcomes and Outputs..................................52

122 Compensation and Debt Relief in Special Circumstances..................55

ANNEXURE A – FORMS OF FINANCIAL STATEMENTS...................57

Part A INTRODUCTION

1                  Legislative Authority

1.1                   The Minister for Finance and Deregulation (Finance Minister) makes:

(a)        the Financial Management and Accountability Orders (Financial Statements for Reporting Periods Ending on or after 1 July 2008) under subsection 63(1) of the Financial Management and Accountability Act 1997 (FMA Act); and

(b)       the Commonwealth Authorities and Companies Orders (Financial Statements for Periods Ending on or after 1 July 2008) under subsection 48(1) of the Commonwealth Authorities and Companies Act 1997 (CAC Act).

1.2                   These Orders are relevant to all reporting entities covered by:

(a)        section 49 of the FMA Act; or

(b)       clause 2 of Schedule 1 to the CAC Act.

1.3                   These Orders form part of the financial reporting framework for Australian Government reporting entities. Elements and requirements of the framework are set out in Division 8.

1.4                   Where a choice of accounting policy is required to be made that is not covered by these Orders, and an accounting treatment that is consistent with the Government Finance Statistics (GFS) framework is available, that treatment must be applied.

2                  Structure

2.1                   The following numbering conventions are used within this schedule:

(a)        Major components are parts, denoted by an upper case letter, e.g. A, B, C;

(b)       Parts are broken into divisions, denoted by a number. Divisions are not always numbered consecutively, to allow for future additions; and

(c)        Each division is further broken up into sections, which commence at .1 in each division.

3                  Further Information

Part B DEFINITIONS AND ABBREVIATIONS

4                  Definitions

5                  Abbreviations

This schedule contains references to the sources of accounting and disclosure requirements. Key abbreviations used are as follows:

Part C  APPLICATION AND PRESENTATION

6                  Commencement

6.1                   Subject to section 6.2, the requirements of this schedule, including Annexure A, apply to financial statements prepared for reporting periods ending on or after 1 July 2008. These requirements replace previously published Finance Minister’s Orders for financial reporting.

6.2                   For entities that cease to exist on or after 1 July 2008, the financial reporting requirements set out in this schedule shall apply.

7                  Applicable Entities

7.1                   Financial statements must be prepared for the following entities:

(a)        each agency and authority;

(b)       the economic entity, comprising the agency or authority and its subsidiaries; and

(c)        each activity or activities of an agency that is/are determined to be a business operation.

8                  Authoritative Requirements

8.1                   Where there is a conflict between this schedule and any other named authoritative requirement in section 8.2, entities are to apply the provisions in this schedule.

8.2                   Subject to section 8.1, the financial report of each entity must comply with the applicable financial reporting framework for Australian Government entities. This framework comprises and requires entities to:

(a)        comply with:

(i)            all applicable requirements of this schedule including Annexure A and other policies issued by Finance;

(ii)         applicable accounting standards and accounting interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and

(b)       have regard to:

(i)            guidance to this schedule and Annexure A;

(ii)         the Statements of Accounting Concepts 1 and 2 (SACs);

(iii)       the AASB Framework for the Preparation and Presentation of Financial Statements; and

(iv)        Estimates Memorandums, FinanceBriefs, Finance Circulars, Financial Management Guidance series, Accounting Guidance Notes and other guidance issued by Finance.

9                  Financial Reporting Structure and Form

9.1                   The financial statements of each entity must:

(a)        include the primary financial statements, schedules and notes in the form prescribed in Annexure A;

(b)       include all note disclosures specified in this schedule and outlined in Annexure A; and

(c)        be presented in the English language and Australian dollars.

9.2                   The financial statements of each entity must be presented in the following order:

(a)        statement required by section 14.2 or 14.3;

(b)       primary financial statements (income statement, balance sheet, statement of changes in equity or statement of recognised income and expense, and cash flow statement); and

(c)        schedules and notes to the financial statements.

9.3                   Comparative information must be disclosed in the financial statements unless not required by this schedule or Australian Accounting Standards.

9.4                   This schedule applies to departmental as well as administered items unless otherwise specified.

9.5                   Entities must include sub-total rows and/or columns in Annexure A notes as required to reconcile to line items on the face of the primary statements. Additional total and sub-total rows and columns may be included to present information required by Australian Accounting Standards or to improve the clarity of the financial statements.

9.6                   Where zero balances occur in the current and comparative years, the line item may be omitted, except for balances that relate to the following items:

(a)        Appropriations under Part I;

(b)       Special accounts under Division 120;

(c)        Compensation and debt relief disclosures under Division 122; and

(d)       Remuneration of Auditors.

10            Simplified Reporting

10.1               Entities may adopt the simplified reporting provisions set out in sections 10.2 to 10.6 having regard to section 8.2 and the order of information outlined in Annexure A.

Presentation of Primary Financial Statements

10.2               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 titled surplus (deficit) attributable to the Australian Government and surplus (deficit) attributable to minority interest may be omitted.

10.3               Where an amount is disclosed on the face of a primary statement, it is not necessary to repeat this information in the notes to the financial statements, unless this is required in conjunction with the presentation of other information.

Notes to the Financial Statements

10.4               Where the 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 rather than disclosing these amounts.

10.5               In relation to Division 122 of this schedule, an entity that has no transactions in either the current reporting or any comparative period, must disclose by way of a note that there were no such transactions or balances.

10.6               Where there are no commitments or contingencies in either the current or the immediately preceding reporting periods, it is not necessary to include a schedule for such items. Instead, the fact that there are no such items must be disclosed in the notes to the financial statements.

11            Early Adoption of Accounting Pronouncements

11.1               If an entity wishes to adopt a new accounting standard or AASB Interpretation earlier than its effective date of application, other than as permitted or required by this schedule, it must seek approval from the Finance Chief Executive.

11.2               The Finance Chief Executive may instruct one or more entities to early adopt a new accounting standard or AASB Interpretation.

12            Materiality and Information Disclosure

12.1               The requirements of this schedule apply where information resulting from their application is material, or as specifically stated within the schedule.

12.2               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 statements; or

(b)       affect the discharge of accountability by management or the governing body of the entity.

12.3               Entities must prepare financial statements and notes to reflect materiality of information pursuant to this schedule at the individual entity level.

12.4               Entities must maintain proper accounting records to support all disclosures required by this schedule and the supporting policy.

12.5               Each change in accounting policy must be disclosed separately.

13            Rounding Off

13.1               Unless otherwise provided in this schedule, amounts in the financial statements and notes may be rounded off to the nearest dollar, or where applicable 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 less than $500, in which case the amount should be rounded to zero; and

(b)       where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $1 billion — it may round an amount to the nearest $1 million, unless that amount is less than $500,000, in which case the amount should be rounded to zero.

13.2               Subject to section 13.3, amounts reported in the notes to the financial statements for appropriations, special accounts and outcomes are to be rounded to the nearest dollar, or $1,000 where the entity meets the requirements of paragraph 13.1(a). Paragraph 13.1(b) does not apply.

13.3               The following line items relating to appropriations are not to be rounded:

(a)        Paragraph 104.15 Table A line items (t) to (w)

(b)       Paragraph 104.16 Table B line items (r) to (u)

13.4               Rounding must be applied consistently within departmental reporting. Rounding must be applied consistently within administered reporting. However, in accordance with section  13.1, rounding need not be consistent between departmental and administered reporting, with the exception of appropriations, outcomes and special accounts disclosures.

13.5               Materiality must be considered prior to rounding generally, to ensure rounding does not affect whether or not the item is considered material.

14            Certificates

14.1               The signed audit report on the financial statements must be attached to the financial statements.

14.2               Each authority or, where relevant, each economic entity comprising an authority and its subsidiaries’ financial statements as applicable, must present a statement signed by the chair of the board (or a director) in accordance with a resolution of the board, and the chief executive officer, stating:

(a)        whether the financial statements and notes, in their opinion, give a true and fair view of the matters required by this schedule;

(b)       whether the financial statements and notes, in their opinion, have been prepared based on properly maintained financial records;

(c)        for entities other than the Reserve Bank of Australia, whether, in their opinion, there are, when the statement is made, reasonable grounds to believe that the entity will be able to pay its debts as and when they fall due;

(d)       when additional information is included in the notes to give a true and fair view and/or to satisfy section 16.3 where applicable, then the reasons for forming this view and the location of the additional notes in the financial statements;

(e)        that the statement has been made in accordance with a resolution of the directors; and

(f)         the date on which the statement is made.

14.3               Each other entity identified in section 7.1 required to prepare financial statements must include a statement signed by the chief executive officer and chief financial officer stating:

(a)        whether the financial statements and notes, in their opinion, give a true and fair view of the matters required by this schedule;

(b)       whether the financial statements and notes, in their opinion, have been prepared based on properly maintained financial records;

(c)        when additional information is included in the notes to give a true and fair view and/or to satisfy section 16.3 as applicable, then the reasons for forming this view and the location of the additional notes in the financial statements; and

(d)       the date on which the statement is made.

15            Departmental and Administered Items: Classification and Reporting

15.1               With the exception of items covered under Division 38, entities must distinguish items as departmental or administered in the financial statements for all disclosures outlined in this schedule.

15.2               The financial statements must present administered and departmental items in accordance with Cabinet decisions on their classification.

15.3               No changes are to be made to the classification of existing items without the approval of Cabinet or the Finance Minister.

15.4               Monies held in trust for other persons is neither departmental nor administered. Specific reporting requirements apply in relation to assets held in trust (refer to Division 38 of this schedule).

16            Exemptions from this Schedule

16.1               The Finance Minister may grant a written exemption to the chief executive officer of an agency, or directors of an authority, from any specified requirements of this schedule.

16.2               An exemption may be granted subject to conditions, including a requirement for alternative forms of disclosure.

16.3               The chief executive officer or directors must disclose the particulars of any exemption granted under section 16.1 and applied by the entity in the financial statements.

17            Approved Exemptions

17.1               Certain limited exemptions to this schedule apply to entities as specified below.

17.2               Section 33.7 constitutes an approved exemption for a for-profit entity or an entity that is a university to elect not to apply the requirements at sections 33.2, 33.3, 33.5and 33.6 relating to valuation of non-financial assets.

17.3               Section 22.1 provides an exemption to for-profit entities from making disclosures under Division 22, however these entities are required to make the necessary disclosures in accordance with AASB 124 Related Party Disclosures.

17.4               Public Financial Corporations (PFCs) and Government Business Enterprises (GBEs) can apply any of the three recognition options for recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. All other entities are to apply the direct to equity option of recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. This is applicable to departmental and administered items.

17.5               The Australian Office of Financial Management (AOFM) is excluded from the requirement to present the schedule of administered items and associated administered notes required by section 85.1 and Annexure A. However, AOFM must instead adhere to the income statement reporting requirements of AASB 101 Presentation of financial statements.

17.6               In accordance with section 38.4, intelligence and security agencies, defence agencies and prescribed law enforcement agencies are exempt from making disclosures under Division 38.

17.7               The Reserve Bank of Australia is not required to prepare financial statements in the format prescribed by Annexure A. The Reserve Bank of Australia can determine the format of the financial statements and notes to the extent that it applies generally accepted industry reporting principles and applicable Australian Accounting Standards.

17.8               The Future Fund is exempt from presenting the financial statements required by this schedule and Annexure A, on the condition that:

(a)        the Future Fund presents its financial statements as a single entity;

(b)       the financial statements are presented in a format consistent with that used in the funds management industry and applying applicable Australian Accounting Standards;

(c)        the financial statements for the Future Fund contain sufficient information to ensure appropriate accountability and transparency, consistent with that applying to general purpose financial statements;

(d)       the Future Fund present such additional disclosures as required in Division 81, Part H and Part J, to the extent that they are relevant to the Future Fund’s operations; and

(e)        to the extent that there is a conflict between paragraph (b) and paragraphs (c) and (d), paragraphs (c) and (d) will have precedence.

17.9               The term Future Fund refers collectively to the Board of Guardians and the Future Fund Management Agency as well as the Future Fund itself including the investments and special account constituted under the Future Fund Act 2006.

17.10           In the presentation of the financial statements required under the Aboriginal and Torres Strait Islander Act 2005, the Aboriginal and Torres Strait Islander Land Account (Land Account) is exempt from the following items in this schedule:

(a)        Part G and the administered disclosures in Annexure A;

(b)       Part I to the extent that the Land Account has no appropriation transactions and balances other than through its special account; and

(c)        Division 121 to the extent that the Land Account does not have any defined outcomes and outputs.

17.11           The Land Account is required to present its administered activities in departmental format as illustrated in Annexure A. The accounting policy note must clearly state that all activities are administered.

17.12           Other entities that include the activities of the Land Account must continue to comply with this schedule in the preparation of their financial statements.

17.13           In the presentation of the financial statements required under the Aboriginal Land Rights (Northern Territory) Act 1976, the Aboriginals Benefit Account is exempted from the items listed in section 17.10 under the same conditions imposed on the Land Account in sections 17.11 and 17.12.

Part D INCOME STATEMENT (Excluding Appropriations)

18            Income – General Information (Excluding Appropriations)

Grants

18.1               For‑profit entities must:

(a)        recognise non‑monetary government grants at fair value and not at nominal amount;

(b)       present government grants related to assets as deferred income and not as a deduction to the carrying amount of the asset; and

(c)        present government grants related to income as income in the income statement and not deduct them from the related expense.

19            Expenses – General Information

20            Borrowing Costs

20.1               Borrowing costs are to be expensed as incurred. The alternative treatment allowed under AASB 123 Borrowing Costs is not to be adopted.

21            Operating Leases

21.1               Entities must recognise minimum operating lease payments as expenses on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user’s benefit.

21.2               Contingent operating lease rentals are recognised as expenses in the period in which they are incurred.

22            Director/Executive Remuneration

22.1               Not-for-profit entities must disclose directors’ and executive remuneration in compliance with this division. For-profit entities are exempt from making these disclosures but they must make disclosures required by AASB 124 Related Party Disclosures.

22.2               Division 22 applies to the following groups of individuals:

(a)        senior executives of an agency;

(b)       senior executives and directors of an authority; and

(c)        senior executives and directors of the economic entity, where an agency or authority is the parent in the economic entity.

22.3               The following must be disclosed in the notes to the financial statements:

(a)        the number of individuals, listed in section 22.2, whose total remuneration for the financial year falls within each successive $15,000 band, commencing at:

(i)            For all senior executives - $130,000; and

(ii)         For all directors - the band incorporating the lowest paid director;

(b)       the total remuneration for each group of individuals referred to in paragraph (a); and

(c)        the aggregate amount of separation and redundancy expenses for the individuals in paragraph (a)(i).

Senior executives and directors are to be disclosed separately.

22.4               The entity that is the recipient of a senior executive or director in a secondment arrangement must disclose the amount of remuneration of the senior executive or director. This is regardless of whether the remuneration is paid by the recipient entity, or otherwise received as resources free of charge by the recipient entity. Entities benefiting from a resources free of charge arrangement must make a statement to the effect that amounts disclosed are included as receipt of goods or services from another Government entity.

22.5               An entity that is party to a fee for service contract with a second Australian Government entity and is not the direct employer of the senior executive or director subject to the contract, is exempt from making remuneration disclosures under Division 22 in respect of those arrangements.

22.6               The remuneration of star ranked military officers must be disclosed, as required by section 22.3, including any short period of secondment or deployment domestically or overseas.

23            Remuneration of Auditors

23.1               The financial statements of an entity must include a note giving particulars of the amounts paid or payable to the auditor of the financial statements, for:

(a)        auditing the financial statements for the reporting period; and

(b)       any other audit services provided during the reporting period.

23.2               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 division, performance audits are not taken to be services provided to an entity.

23.3               Entities must disclose the extent to which auditor’s remuneration is paid to an auditor other than the Auditor-General.

24            Competitive Neutrality

24.1               Entities that are required to make competitive neutrality (CN) payments under the Commonwealth Competitive Neutrality Policy Statement – June 1996, must explain and disclose the amount of each of the following:

(a)        CN – Regulatory Neutrality Expense

(b)       CN – Debt Neutrality Expense

(c)        CN – State Tax Equivalent Expense

(d)       CN – Commonwealth Tax Equivalent Expense

(e)        CN – Other Expense.

Part E BALANCE SHEET

30            Financial Assets – General Information

30.1               Appropriations receivable are not financial instruments under AASB 139 Financial Instruments: Recognition and Measurement, as they are not contractually based, and thus must not be discounted in accordance with that Standard.

31            Receivables for Statutory Charges

31.1               Receivables for statutory charges are to be assessed for impairment under AASB 136 Impairment of Assets.

32            Investment of Surplus Money by Authorities

32.1               The financial statements of an 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).

32.2               Details should include the statutory basis for holding additional investments outside those allowed under paragraphs 18(3)(a)-(c) of the CAC Act, including whether an approval has been received by the authority under paragraph 18(3)(d) of the CAC Act.

33            Valuation of Non-Financial Assets

33.1               This division is presented on the basis that assets are not held for sale. Where assets are held for sale AASB 5 Non Current Assets Held for Sale and Discontinued Operations applies.

33.2               Subsequent to initial recognition, entities must measure every type of departmental and administered asset listed below at fair value in accordance with AASB 116 Property, Plant and Equipment or AASB 140 Investment Property as applicable:

(a)        land;

(b)       buildings;

(c)        infrastructure, plant and equipment;

(d)       heritage and cultural assets (where not intangible assets); and

(e)        investment properties.

33.3               Intangible assets must be valued by class, at;

(a)        cost, in the absence of an active market; or

(b)       fair value, where an active market exists.

33.4               The cost model must be applied to specialist military equipment.

33.5               Each non-financial asset listed in section 33.2 or recognised in compliance with section 33.3(b), other than investment property, must be assessed each year to ensure that the carrying amount does not differ materially from fair value as at reporting date. If there is a material difference then revaluation of the entire class is required.

33.6               Investment property must be revalued annually in compliance with AASB 140.

33.7               For-profit entities and entities classified as universities may elect not to apply the requirements of sections 33.2, 33.3, 33.5 and 33.6.

34            Impairment of Non-Financial Assets

34.1               For the purposes of AASB 136 Impairment of Assets, parts of entities are not cash‑generating units where they are primarily dependent on funding from appropriations (other than Financial Management and Accountability Act 1997 (FMA Act) section 31 appropriations).

35            Analysis of Non-Financial Assets

35.1               Notes to the financial statements must include the following tables in Annexure A, where applicable:

              Table A: Reconciliation of the Opening and Closing Balances of  Property, Plant and Equipment;

              Table B: Reconciliation of the Opening and Closing Balances of  Investment Property; and

              Table C: Reconciliation of the Opening and Closing Balances of  Intangibles.

              Entities may combine tables where it is considered appropriate to simplify disclosure. Sufficient information and sub-total columns must be disclosed to enable reconciliation of amounts to the corresponding line items disclosed on the balance sheet.

37            Heritage and Cultural Assets

37.1               Departmental and administered heritage and cultural items must only be recognised as assets where they meet the asset definition and recognition criteria set out in the relevant Australian Accounting Standard.

37.2               Where heritage and cultural items are primarily used for purposes that do not relate to their cultural, environmental or historical significance, they must be accounted for in accordance with AASB 116 Property, Plant and Equipment.

37.3               When an entity controls or administers heritage and cultural items that are not recognised as assets, the notes to the financial statements must disclose:

(a)        a description of those items;

(b)       the reason for non-recognition of those items;

(c)        the amount expended to acquire such items during the financial year; and

(d)       the amount of proceeds from the disposal of such items during the financial year.

38            Assets Held in Trust

38.1               Financial statements of entities must include a note giving particulars of assets held in trust when the entity is a trustee in a legal trust arrangement. A legal trustee relationship may occur through formal appointment or otherwise.

38.2               The note referred to in section 38.1 must contain:

(a)        a summary of the categories of assets held in trust at the end of the reporting period and the purpose for which they are being held in trust;

(b)       in relation to monetary assets held in trust, an entity is required to disclose:

(i)            total amount held at the beginning of the reporting period;

(ii)         total receipts during the reporting period;

(iii)       total payments during the reporting period; and

(iv)        total amount held at the end of the reporting period; and

(c)        in relation to non-monetary assets held in trust, an entity is required to disclose the:

(i)            estimated value at the beginning of the reporting period;

(ii)         estimated value of assets obtained during the reporting period;

(iii)       estimated value of assets disposed of during the reporting period; and

(iv)        estimated value of assets at the end of the reporting period.

38.3               Where an estimated value cannot be assigned to a non-monetary asset, either because it is uneconomical or impractical to do so, the details in section 38.2(c) do not need to be disclosed. A statement from the entity asserting that it is uneconomical or impractical is taken to be sufficient evidence. However, an entity must provide additional disclosure stating why estimated values have not been used.

38.4               Intelligence and security agencies, defence agencies and prescribed law enforcement agencies are exempt from the disclosure requirements under Division 38.

39            Joint Ventures

39.1               Subject to Division 87, entities must recognise interests in jointly controlled entities using the equity method and not proportionate consolidation.

40            Liabilities – General Information

41            Liabilities Relating to Dividends

41.1               Where legislation provides that a Minister(s) may determine the amount to be paid as a dividend or similar distribution, the entity must recognise a liability for any dividend or distribution determined by a Minister(s) at the date of the Ministerial determination.

41.2               Where a wholly-owned Australian Government entity is required to pay its profit for the year to the Australian Government, a liability must be recognised for an amount equal to profit for the current year as at the entity’s reporting date.

41.3               Where an entity is required to pay its profit for the year to the Australian Government after the deduction of certain amounts, a liability for the dividend must be recognised if those amounts are known before the date of completion of the financial statements. If these amounts are not known before this date, the entity should instead disclose a contingent liability.

41.4               Entities must account for a return of capital through non-reciprocal payments in accordance with section 101.15 and recognise a reduction in equity in the financial statements in compliance with section 101.16. These are not dividends.

42            Provisions

43            Employee Benefits

Employee Benefits Disclosures

43.1               Leave liabilities are to be discounted on the basis of when leave is expected to be taken.

Annual and Long Service Leave

Annual Leave

43.2               Entities must identify any annual leave that is not expected to be consumed within twelve months after the reporting date and ensure it is discounted in accordance with other long term employee benefits under AASB 119. Annual leave that is expected to be consumed within twelve months is measured at nominal amounts, allowing for pay increases that are expected to impact the amounts payable.

Long Service Leave

43.3               Entities with less than or equal to 1,000 full-time equivalent employees (FTE) may continue to use the shorthand method when calculating their long-service leave liability.

43.4               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:

(a)        If an entity’s employee profile is demonstrably not materially different from the Australian Government’s standard profile, entities may use the shorthand method;

(b)       Undertake an actuarial assessment; or

(c)        Use a detailed calculation basis (e.g. employee by employee).

44            Measurement and Disclosure of Post Employment Plans

44.1               Entities as agents collecting contributions from employees for the Public Sector Superannuation Scheme (PSS), Commonwealth Superannuation Scheme (CSS) and military superannuation schemes (including the Military Superannuation and Benefits Scheme (MSBS) must account for, and make the required disclosures in accordance with AASB 119 as if they were contributing to defined contribution plans. In addition, the following must be disclosed:

(a)        that the entity is accounting for the scheme as a defined contribution plan;

(b)       that at the whole-of-Government level the scheme is a defined benefit plan and is accounted for as such; and

(c)        a reference to the financial statements in which the defined benefit disclosures have been or will be made.

44.2               Entities participating in the PSS and CSS Schemes must reference the administered disclosures made in Finance’s financial statements for these schemes. The Finance financial statements do not need to be published for these references to be made.

44.3               Public Financial Corporations (PFCs) and Government Business Enterprises (GBEs) can apply any of the three recognition options for recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. All other entities are to apply the direct to equity option of recognising actuarial gains and losses for defined benefit plans as outlined in AASB 119. This section is applicable to departmental and administered items.

44.4               Plans where the actuarial risk (shortfall risk) falls on the entity must be accounted for as defined benefit plans.

44.5               The market yield on long-term Government bonds must be referenced when determining a discount rate for discounting in compliance with AASB 119.

45            Financial Instruments

45.1               Where an active market exists for a financial asset (for example a listed share) entities must classify the instrument as either at fair value through profit or loss or available for sale, unless unable to do so under AASB 139.

45.2               Where an active market exists for a financial liability, entities must classify the instrument as held at fair value through profit or loss, unless unable to do so under AASB 139.

45.3               For regular way purchase or sale, trade date accounting must be applied.

45.4               Entities must recognise all impairment losses on financial instruments under AASB 139 in an allowance account where permitted, rather than adjusting these losses directly against the carrying amounts of the related assets. A separate account must be maintained for each class of financial asset.

45.5               Where AASB 139 allows entities to choose between:

(a)        capitalising gains and losses on hedges into the carrying amount of the underlying assets; and

(b)       progressively transferring such gains and losses from equity to income or expense,

Entities must adopt (a) in all cases.

45.6               Where an entity has held derivative financial instruments that are not part of a qualifying hedging arrangement, at any time during the period, it shall disclose:

(a)        management’s objectives for holding or issuing those derivatives;

(b)       the context needed to understand those objectives; and

(c)        the strategies for achieving those objectives.

45.7               Entities must disclose the nominal value of concessional loans as well as the unexpired discount.

Part F OTHER FACE STATEMENTS AND SCHEDULES

50            Statement of Changes in Equity

50.1               A statement of changes in equity or statement of recognised income and expense is not required for administered items.

60            Cash Flow Statement

60.1               Entities must present a cash flow statement using the direct method in compliance with AASB 107 Cash Flow Statements.

60.2               Dividends paid are to be presented as a component of financing activities.

75            Schedule of Administered Items

75.1               Entities must prepare a schedule of administered items in compliance with Division 85 of this schedule.

80            Contingencies

Schedule of Contingencies

80.1               Contingent liabilities and contingent assets that are able to be reliably measured must be classified in accordance with the classes in the schedule of contingencies in Annexure A; where applicable, new classes can be added.

80.2               Unquantifiable contingent liabilities and contingent assets that are not included in the schedule of contingencies but may have an impact on the operations of the entity must be explained in a note to the financial statements.

80.3               Where there are no contingencies in either the current or the immediately preceding reporting periods, it is not necessary for an entity 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.

80.4               Contingent liabilities and contingent assets are not required to be disclosed where it is expected that disclosure would seriously prejudice the Commonwealth. In these rare cases entities should apply paragraph 92 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Contingent Liabilities

80.5               Entities must disclose departmental contingent liabilities that can be reliably measured (quantifiable) in the schedule of contingencies, in accordance with Annexure A. Equivalent disclosure for administered contingent liabilities must be included in the schedule of administered items.

Contingent Assets

80.6               Entities must disclose departmental contingent assets that can be reliably measured (quantifiable) in the schedule of contingencies, in accordance with Annexure A where it is less than probable that an asset will be recognised in the future. Equivalent disclosure for administered contingent assets must be included in the schedule of administered items.

81                          Commitments

81.1               Entities must disclose the nature, and where quantifiable, the amount of each class of departmental commitment in a schedule of commitments in accordance with the tables in Annexure A and in compliance with Australian Accounting Standards. Equivalent disclosure for administered commitments must be included in the schedule of administered items.

81.2               Where there are no commitments in either the current or the immediately preceding reporting periods, it is not necessary to include a schedule for such items. Instead, the fact that there are no such items should be disclosed in the notes to the financial statements.

81.3               Commitments receivable must be disclosed where the inflow of resources is probable.

81.4               The amounts reported as commitments payable and commitments receivable must include GST where applicable. A corresponding commitment receivable or payable must be recorded for GST amounts recoverable from or payable to the Australian Taxation Office, respectively.

Part G ADMINISTERED REPORTING

85            Administered Reporting – General Information

85.1               The financial statements of an entity that administers activities for the Australian Government, must include a schedule of administered items and associated administered notes.

85.2               The schedule of administered items and associated administered notes must:

(a)        include administered items as defined in Division 15;

(b)       be presented in the form prescribed by Annexure A;

(c)        include the administered reconciliation table in accordance with section 85.5;

(d)       include disclosures in relation to accounting policies and financial instruments in accordance with the relevant accounting standards; and

(e)        use background shading for the schedule of administered items and administered notes.

85.3               The schedule of administered items and administered notes must:

(a)        comply with all applicable requirements of this schedule; and

(b)       provide in the heading of, or as a footnote to, the schedule of administered items, a brief description of the activities being administered on behalf of the Australian Government.

85.4               A statement of changes in equity or statement of recognised income and expense is not required for administered items.

85.5               The administered reconciliation table must include the following line items:

| (a)        Opening administered assets less administered liabilities as at 1 July | | (b)       Adjustment for change in accounting policies | | (c)        Adjustment for errors | | (d)       Adjusted opening administered assets less administered liabilities | | (e)        Plus: Administered income | | (f)         Less: Administered expenses | | (g)        Administered transfers to/from Australian Government:<br>(i)       Appropriation transfers from OPA:<br>     Annual appropriations administered expenses     Administered assets and liabilities appropriations     Special appropriations (limited)     Special appropriations (unlimited)<br>(ii)     Transfers to OPA<br>(iii)   Restructuring | | (h)       Transfers to other entities (Finance only) | | (i)          Transfers from other entities (Finance only) | | (j)         Administered revaluations taken to/from reserves | | (k)       Currency translation gain/loss | | (l)          Closing administered assets less administered liabilities as at 30 June |

85.6               Administered transfers must be recognised and reported in compliance with section 92.2 of this schedule.

86            Income and Expenses Administered On Behalf of Government

86.1               Transfers of administered assets and liabilities between wholly owned Australian Government entities are not to be recorded as administered income and expenses.

87            Administered Investments

87.1               Administered investments must be disclosed in the financial statements by all entities.

87.2               Administered investments, other than those held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, must be measured at fair value.

87.3               Administered investments are not considered controlled by the agency reporting them.

87.4               Administered investments must not be consolidated on a line by line basis into an agency’s financial statements without approval from the Finance Chief Executive.

88            Administered Investments Held for Sale

88.1               Where a decision has been made to transfer an administered investment to another entity for sale, but the transfer date is not specified, the asset is assumed to have been transferred on the date of the decision to sell the asset.

88.2               Transfers of administered investments held for sale must be transferred at net book value and accounted for in accordance with Division 45 of this schedule.

88.3               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 but the total selling cost must be disclosed in a note to the financial statements where the selling costs are expensed across a number of financial years.

88.4               The following particulars must be disclosed in the administered notes for each sale of an administered investment:

(a)        proceeds from sale;

(b)       written down value of the asset sold;

(c)        recognised gain or loss on sale;

(d)       selling costs incurred; and

(e)        the net gain or loss after deducting selling costs incurred.

89            Impairment of Administered Assets

90            Liabilities Administered on Behalf of the Government

90.1               The Australian Government has a legal liability to meet the deficits of the PSS, CSS and military superannuation schemes, and as such liabilities related to these schemes are reported in the administered financial statements of Finance (PSS and CSS) and the Department of Defence (military superannuation schemes) on behalf of the Australian Government.

91            Transfer Payments

91.1               The broad categories of and amounts transferred to recipients of transfer payments must be disclosed in the financial statements.

Part H RESTRUCTURES

92            Restructures

92.1               Where restructures have occurred during the reporting period, the financial statements of entities must include a note giving particulars of the restructure. Separate disclosure must be made for administered and departmental items. Entries need not physically have been processed by the date of transfer for an entity to make the required note disclosure as of that date.

92.2               Non-reciprocal transfers of assets and liabilities resulting from a restructure between:

(a)    wholly owned Australian Government entities; and/or

(b)    departmental and administered classifications,

due to:

(i)            a decision by the Cabinet or Prime Minister;

(ii)         an Administrative Arrangements Order (AAO);

(iii)       an Act of Parliament or a Regulation under an Act; and/or

(iv)        a written agreement between the relevant Portfolio Minister(s) and the Finance Minister or the Prime Minister, as appropriate;

must be recognised as direct adjustments to equity at their net book value (less any token consideration) immediately prior to transfer.

Transfer of assets as part of, or consequent to, the process of selling an asset are restructures as long as the asset sale is approved by Government.

92.3               Where assets exceed liabilities transferred, the transferee must account for the transfer as a contribution by owners and the transferor must account for it as a distribution to owners.

Part I APPROPRIATIONS

100      Recognition of Appropriations – General Information

100.1           Appropriations, including special appropriations, are to be recognised and disclosed, in accordance with this schedule, regardless of whether the relevant amounts are considered to be material in accordance with section 12.2.

100.2           Amounts reported in the notes to the financial statements for appropriations may be rounded to the nearest $1,000. If rounding, amounts less than $500 are rounded to zero.

101      Recognition of Appropriations - Departmental

101.1           Agencies must recognise all departmental appropriations as outlined in section 101.3.

101.2           Departmental outputs and departmental non-operating appropriations with the exception of loan appropriations are non-reciprocal transactions for recognition purposes.

101.3           Subject to section 101.10, the earliest point of recognition for a departmental appropriation by an agency is when the agency gains control of the appropriation for accounting purposes as follows, for:

(a)        Departmental outputs and departmental non-operating appropriations (excluding loans) specified in the Appropriation Acts at the later of:

(i)            Date of Royal Assent of the Appropriation Act; or

(ii)         The commencement of the financial period the appropriation relates to. That is, when the appropriation is effective (normally Appropriation Acts No. 1 and No. 2 and Appropriation (Parliamentary Departments) Act No. 1 are effective from 1 July);

(b)       Loans specified in the Appropriation Acts, when drawn down from the Official Public Account (OPA) for the amount to be received;

(c)        Departmental special appropriations, subject to revenue referred in section 120.4, when the obligation for which the special appropriation exists is incurred to the amount of the obligation;

(d)       section 31 of the Financial Management and Accountability Act 1997 (FMA Act), for the increased appropriation provided by amounts received that are relevant agency receipts, as the income is earned (i.e. on an accrual basis); and

(e)        Advance to the Finance Minister (for Parliamentary Departments, the Presiding Officer) specified in the Appropriation Acts, the date of the determination.

101.4           Each agency must ensure they have a valid appropriation for all amounts drawn from the OPA for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the FMA Act, must be recognised and/or disclosed under their valid appropriation, and as required by        section 104.19.

Measurement

101.5           For departmental output appropriations specified in the Appropriation Acts, the full amount appropriated is to be recognised as income in the year of appropriation, adjusted only by applicable current year formal additions and reductions listed at section 101.13.

Departmental Non-Operating Appropriations Specified in Appropriation Acts

101.6           Subject to section 101.7, departmental non-operating appropriations must be recognised and disclosed at the amounts in the Appropriation Acts, adjusted, where applicable, in accordance with section 101.13.

101.7           Equity injections, loans and previous years’ outputs must be recognised in compliance with the following sections for each item. These entries must be adjusted only by applicable current year formal additions and reductions listed at section 101.13.

101.8           Equity injections must be recognised as a contribution by owners, increasing contributed equity in full from the commencement of the financial year to which the appropriation applies irrespective of when drawn down. Appropriations for equity in Acts passed after the commencement of the period for which the appropriation applies will be recognised from the date of Royal Assent.

101.9           Loan appropriations must be recognised as increases in borrowings. They are not revenue.

101.10       Where additional work is requested by Government with funding to follow in the subsequent period, as previous years’ outputs, the agency must book revenue and an appropriation receivable in the year of agreement for the amount agreed, so long as the transaction is appropriately evidenced. Evidence will include at a minimum, written Ministerial agreement. The subsequent appropriation for previous years’ outputs will reduce the appropriation receivable.

101.11       When an agency transfers cash to the OPA in the nature of repayments of amounts drawn down but does not relinquish the right to redraw those amounts, the agency must account for this by increasing appropriations receivable.

Adjustments to Current Year Departmental Appropriations

101.12       Formal additions or reductions to recognition of departmental appropriations as outlined in section 101.13, occur when an agency 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.

101.13       Departmental appropriations for the current year may only be adjusted by formal additions or reductions in the current year in relation to the appropriations. To be a formal addition or reduction, the gain or loss of control event, as outlined below, must be evidenced in writing from the appropriate authority. Formal additions and reductions are as follows:

(a)        Annual appropriations increased by the operation of section 31 of the FMA Act;

(b)       transfers of appropriation under section 32 of the FMA Act;

(c)        other amounts determined by the Finance Minister (or delegate) or an agency Minister or Presiding Officer under Part 3 Adjusting appropriation items of Appropriation Acts;

(d)       adjustments as stipulated by any agreement that provides for additional revenue for over-delivery or a reduction of revenue for under-delivery, such as purchasing, workload or other agreements;

(e)        adjustments made as a result of a decision by the Government, for an agency to provide additional outputs during the current financial period that will be provided for in the subsequent financial period or to provide fewer outputs where the related funding is to be withdrawn; and/or

(f)         all other adjustments made as a consequence of a decision of the Cabinet or the Prime Minister.

101.14       The agreements referred to in section 101.13 must:

(a)        set out one or more quantifiable deliverable(s) and/or a specific amount of appropriation relating to each; and

(b)       be approved by, or arise from, Ministerial or Cabinet decisions prior to the funding being given.

Equity Returns and Adjustments

101.15       Departmental equity returns must be recognised as a return of capital by adjusting contributed equity and not as a reduction in, or refund of, revenue. Entities shall account for these payments as a reduction in contributed equity from the time the return of capital is paid. Departmental equity returns occur:

(a)        where an agency relinquishes control of funds which had been appropriation revenue in a previous financial year; or

(b)       by making a non-reciprocal payment to the OPA other than as a dividend referred to in Division 40.

101.16       Reductions in contributed equity under section 101.15 are recognised in the financial statements of the agency:

(a)        at the date the appropriation amount is reduced as a consequence of Government policy;

(b)       at the date of effect of a Ministerial direction;

(c)        at the date of the determination reducing a departmental appropriation in accordance with Appropriation Acts; or

(d)       at the date that payment is made in all other cases.

Investment of Funds

101.17       Each agency must recognise and/or disclose all public money invested in authorised investments under section 39 of the FMA Act or surplus funds under section 18 and section 19 of the CAC Act in Table E (appropriately modified) in section 104.22. All money invested under a special account must also be disclosed in accordance with Division 120 of this schedule.

101.18       Where investments are made under an Act of Parliament other than section 39 of the FMA Act, the same format as Table E in section 104.22 should be followed. The name of the relevant Act and section under which the investment is made must be noted. The title of the table may be amended, e.g. for authorities.

102      Recognition of Appropriations - Administered

102.1           Agencies must recognise all administered appropriations as outlined below, in the administered reconciliation table (refer section 85.5). Administered appropriations are not to be recognised as revenue in the schedule of administered items.

102.2           Internal transactions (within the administered entity) must not be reported in the schedule of administered income, expense, assets and liabilities.

102.3           The earliest point of recognition for an administered appropriation by an agency for accounting purposes is as follows, for:

(a)        Administered appropriations, administered non‑operating appropriations, administered special appropriations, when it is drawn down to an agency’s bank account for payment against the appropriation; and

(b)       other amounts determined by the Finance Minister (or delegate) or an agency Minister or Presiding Officer under Part 3 Adjusting appropriation items of the Appropriation Acts, the date stated in the determination, or if there is none stated, then the date of the determination.

102.4           Agencies must ensure that they have a valid appropriation for all amounts drawn from the Official Public Account (OPA) for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the Financial Management and Accountability Act 1997 (FMA Act), must be recognised and/or disclosed under their valid appropriation, and as required by section 104.19.

103      Recognition of Appropriations – CAC Entities

104      Disclosure of Appropriations

104A Disclosure - General

104.1           Agencies must make the disclosures in tabular form in the notes to the financial statements required for all appropriations identified in   section 101.3, applying to departmental and administered items, pursuant to Tables A to G in subdivision 104B.

104.2           Where the responsible agency for the appropriation provides drawing rights to another agency (the agent) to act on its behalf to expend the appropriation, the agent agency will disclose the information required by Table G in section 104.25.

104.3           For special appropriations, a table must be prepared by agencies for each Act authorising the appropriation in accordance with subdivision 104B or alternatively an agency can present each special appropriation as an additional column to the table.

104.4           For special appropriations, where an appropriation has not been drawn on in the current and the previous year, in place of completing the tables in subdivision 104B, an agency may elect to make an abbreviated disclosure that includes all of the following:

(a)        whether the special appropriation  is administered or departmental;

(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 remaining available.

104.5           The responsible agency is to include the relevant details of its special appropriations in the following elements of its financial statements:

(a)        for administered special appropriations:

(i)            administered expenses as part of the schedule of administered items;

(ii)         administered assets and liabilities as part of the schedule of administered items;

(iii)       administered cash flows as part of the schedule of administered items;

(iv)        administered reconciliation table in accordance with section 85.5;

(v)          appropriation Tables C, D, E and F in subdivision 104B (as appropriate); and

(vi)        where applicable, full disclosure of the relationship between the responsible agency and the agency paying moneys from the Consolidated Revenue fund (CRF).

(b)       for departmental special appropriations:

(i)            departmental revenues and expenses as part of the income statement;

(ii)         departmental assets and liabilities as part of the balance sheet;

(iii)       departmental cash flows as part of the cash flow statement;

(iv)        appropriation Tables C, D, E and F in subdivision 104B (as appropriate); and

(v)          where applicable, full disclosure of the relationship between the responsible agency and the agency paying moneys from the CRF.

104.6           The amounts shown in the lines of the table for the annual Appropriation Acts (and limited special appropriations legislation) must be the same as the amounts set out in those Acts.

View image in the official sourceView image in the official source

104.7           Where there are material variances between the cash payments for the reporting period and the amount appropriated, or otherwise authorised, agencies must provide an explanation of those variances below the relevant table.

104.8           The availability of any un-drawn non-operating appropriations must be disclosed in the notes to the financial statements.

104.9           The amounts shown in the lines for the Budget Estimates for unlimited special appropriations legislation must use the latest estimates from the 2009‑10 budget papers, and be based on an agency’s estimate of payments where eligibility is established.

104.10       Special appropriations under sections 28 and 39 of the Financial Management and Accountability Act 1997 (FMA Act) are to be reported by the agency making the payment from the CRF. Additional disclosure is required by Tables D and E in sections 104.19 and 104.22 respectively.

104.11       Where an agency, that is not the responsible agency, has paid money out of the CRF from a special appropriation or an annual appropriation:

(a)        the responsible agency must disclose the name of the agency to which it has given authority to act as its agent and apply the reporting requirements outlined in this division; and

(b)       the agency that has paid money out of the CRF against an appropriation must disclose the name of the responsible agency and apply the reporting requirements outlined at section 104.12.

104.12       An agency paying moneys out of the CRF on behalf of a responsible agency against a special appropriation or annual appropriation must include relevant details of the appropriation as a separate note in its financial statements as follows:

(a)        full disclosure of the relationship between the agency paying from the CRF and each responsible agency; and

(b)       for each special appropriation or annual appropriation, the amount of receipts, subsequent payments from the CRF and the resulting balance of any moneys held using Table G in section 104.25.

104.13       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 appropriation.

104B Appropriations Tables

104.14       Items in sections 104.15 and 104.16 must be recorded on a cash basis, except for items marked with an asterisk (*). These items must be reported on an accrual basis.

104.15       The information contained in the following table:

Table A Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations

must be reported for:

(a)        Administered expenses by outcome and payments to CAC Act bodies; and

(b)       Total departmental outputs.

The sequence and mandatory line items, if applicable, are:

| (a)          Balance brought forward from previous period (Appropriation Acts) | | Appropriation Act: | | (b)         Appropriation Act (No. 1) 2008‑2009 as passed | | (c)          Appropriation Act (No. 3) 2008‑2009 as passed | | (d)         Appropriation Act (No. 5) 2008‑2009 as passed | | (e)          Other annual appropriation acts as passed | | (f)           Departmental appropriations reduced (Appropriation Act section 10) | | (g)          Administered appropriations reduced (non CAC) (Appropriation Act section 11) | | (h)         CAC Act body payment items reduced (Appropriation Act section 12) | | (i)            Advance to the Finance Minister (Appropriation Act section 14) | | (j)           Advance to the Finance Minister recovered (2007‑08 only) | | (k)         Flexible funding pool receipts (Appropriation Act section 15) | | FMA Act: | | (l)            Repayments to the Commonwealth (FMA Act section 30) | | (m)       Appropriations to take account of recoverable GST (FMA Act s30A) | | (n)         Relevant agency receipts (FMA Act section 31) | | (o)          Adjustment of appropriations on change of agency function (FMA Act section 32): | | (p)         Total appropriation available for payments | | (q)         Cash payments made during the year (GST inclusive) | | (r)          Appropriations credited to special accounts  (GST exclusive) | | (s)           Balance of authority to draw cash from the Consolidated Revenue Fund for ordinary annual services appropriations and as represented by:             <br>(i)           Cash at bank and on hand <br>(ii)         *Departmental appropriations receivable<br>(iii)       *Undrawn, unlapsed administered appropriations<br>(iv)       Adjustments under section 101.13 of the Finance Minister’s Orders not reflected above<br>Total as at 30 June | | (t)           Reduction in administered items | | (u)         Total administered items appropriated 2008‑2009 | | (v)          Less administered items required by the agency as per Appropriation Act section 11:<br>(i)           Appropriation Act (No. 1) 2008‑2009<br>(ii)         Appropriation Act (No. 3) 2008‑2009<br>(iii)       Appropriation Act (No. 5) 2008‑2009<br>(iv)       Other annual appropriation acts<br>(v)         Total administered items required by the agency | | (w)        Total reduction in administered items  - effective 2009‑2010 |

104.16       The information contained in the following table:

Table B Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations

Must be reported for:

(a)        State, ACT, NT and local government items;

(b)       New Administered Expenses related to each outcome;

(c)        Equity injections;

(d)       Loans;

(e)        Previous years’ outputs;

(f)         Administered assets and liabilities; and

(g)        CAC Act body payment items.

The sequence and mandatory line items, if applicable, are:

| (a)          Balance brought forward from previous period (Appropriation Acts) | | Appropriation Act: | | (b)         Appropriation Act (No. 2) 2008-2009 | | (c)          Appropriation Act (No. 4) 2008-2009 | | (d)         Appropriation Act (No .6) 2008-2009 | | (e)          Other annual appropriation acts | | (f)           Administered appropriations reduced (non CAC) (Appropriation Act sections 12 & 13) | | (g)          Departmental appropriations reduced (Appropriation Act section 13) | | (h)         CAC Act body payment items reduced (Appropriation Act section 14) | | (i)            Advance to the Finance Minister (Appropriation Act section 15)) | | (j)           Advance to the Finance Minister recovered  (2007‑08 only) | | FMA Act: | | (k)         Repayments to the Commonwealth (FMA Act section 30) | | (l)            Appropriations to take account of recoverable GST (FMA Act s30A) | | (m)       Adjustment of appropriations on change of agency function (FMA Act section 32): | | (n)         Total appropriations available for payments | | (o)          Cash payments made during the year (GST inclusive) | | (p)         Appropriations credited to special accounts  (GST exclusive) | | (q)         Balance of authority to draw cash from the Consolidated Revenue Fund for other than ordinary annual services appropriations and as represented by:<br>(i)           Cash at bank and on hand<br>(ii)         *Appropriation receivable<br>(iii)       *Undrawn, unlapsed administered appropriations<br>(iv)       Adjustments under section 101.13 of the Finance Minister’s Orders not reflected above<br>Total | | (r)          Reduction in administered items | | (s)           Total administered items appropriated 2008‑2009 | | (t)           Less administered items required by the agency as per Appropriation Act section 11:<br>(i)                 Appropriation Act (No. 2) 2008‑2009<br>(ii)               Appropriation Act (No. 4) 2008‑2009<br>(iii)            Appropriation Act (No. 6) 2008‑2009<br>(iv)             Other annual appropriation acts<br>(v)               Total administered items required by the agency | | (u)         Total reduction in administered items  - effective 2009‑2010 |

104.17       Entities must report the information contained in the following table:

Table C Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount)

| (a)          Particulars of legislation providing appropriation (including purpose):<br>(i)            Cash payments made during the year<br>(ii)         Appropriations credited to special accounts<br>(iii)       Repayments to the Commonwealth (net) (FMA Act section 30)<br>(iv)        Total charged to appropriation<br>(v)          Estimated actual |

104.18       Agencies must disclose separately in Table C (section 104.17) for each Act, current as at reporting date. Entities must disclose, in the heading or by way of footnote:

(a)        whether the special appropriation is administered or departmental; and

(b)       the outcome with which it is associated.

Agencies must disclose all unlimited special appropriations in this format, excluding those unlimited special appropriations required to be disclosed under Tables D and E in sections 104.19 and 104.22 respectively.

104.19       Agencies must report the information contained in the following table:

Table D Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Refund Provisions)

| (a)          Particulars of legislation providing appropriation (including purpose):<br>(i)            Cash payments made during the year<br>(ii)         Appropriations credited to special accounts<br>(iii)       Refunds received (net) (FMA Act section 30)<br>(iv)        Total charged to special appropriation<br>(v)          Budget Estimate (listing each other legislative provision that refunds have been made under)<br>(vi)        Budget Estimate (FMA Act section 28) |

104.20       Where an agency  has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid, that agency may make the following statement in the notes to their financial statements, in place of disclosing Table D in section 104.19: For the periods 2007-08 and 2008-09, (agency) has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid.

104.21       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 agency must disclose the aggregate of all those transactions in line 1 Cash payments made during the year, Table D in section 104.19.

104.22       Agencies must report the information contained in the following table:

Table E Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (section 39 of the FMA Act)

| (a)          Amount invested brought forward from previous period | | (b)         Prior year investments redeemed in current year | | (c)          Investments made during the year | | (d)         Redemptions of current year investments (gross) | | (e)          Amount invested carried to the next period (sum of the above) | | (f)           Budget Estimate |

104.23       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 Table E in section 104.22: For the periods 2007-08 and 2008‑09, (agency) has not used section 39 of the FMA Act.

104.24       The information contained in the following table:

Table F Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount)

must be reported by appropriation type, on a cash basis, except for items marked with an asterisk (*) which must be reported on an accrual basis:

| (a)          Particulars of legislation providing appropriation (including purpose):<br>(i)            Amount brought forward from previous period<br>(ii)         Appropriation for reporting period<br>(iii)       Appropriations to take account of recoverable GST (FMA Act section 30A)<br>(iv)        Available for payments<br>(v)          Cash payments made during the year (GST inclusive)<br>(vi)        Appropriations credited to special accounts<br>(vii)     Appropriations lapsed<br> <br>(viii)   Amount available carried to the next period and as represented by:<br>CashDepartmental appropriation receivableUndrawn, unlapsed administered appropriations<br>(ix)        Total |

104.25       The information contained in the following table:

Table G Disclosure by Agent in Relation to Appropriations

must be reported for departmental and administered items for each responsible agency that the agent acts on behalf of:

| (a)          Name of legislation providing the appropriation:<br>(i)            Total receipts<br>(ii)         Total payments<br>(iii)       Balance of receipts and payments for departmental, and for administered, for each responsible agency |

Part J OTHER DISCLOSURES

120      Special Accounts

120.1           Special accounts must have a positive balance at all times. The balance represents the appropriation available to be drawn from the Consolidated Revenue Fund (CRF).

120.2           Agencies must disclose information on special accounts in accordance with this schedule for departmental and administered items, regardless of whether the relevant amounts are considered to be immaterial.

120.3           Amounts disclosed in this division are to be rounded either to the nearest dollar or the nearest $1,000, in accordance with section 13.2.

120.4           Amounts deposited in a special account from external parties must be recognised when the agency controls the funding as income/assets. These amounts are to be recognised in the income statement and balance sheet on an accrual basis.

120.5           The special account is reflected in the agency’s departmental or administered financial statements as appropriate.

120.6           Transfers of departmental appropriations (which have already been received and recognised) to a departmental special account, or administered appropriations (which have already been received and recognised) to an administered special account are not income recognised/disclosed in the financial statements, but are an internal transfer.

120.7           Agencies must make the special account disclosures as required in Table A (section 120.8) on a cash basis. Agencies can disclose each special account in a separate table or each as a new column to the table.

120.8           Agencies must report the information contained in the following table in relation to special accounts in this sequence:

Table A Special Accounts

| (a)               Balance brought forward from previous period | | (b)              Appropriation for reporting period | | (c)               Costs recovered | | (d)              GST credits (FMA Act FMA Act section 30A) | | (e)               Realised investments | | (f)                Other receipts | | (g)               Total credits | | (h)              Available for payments | | (i)                 Payments made | | (j)                Repayments debited from the special account | | (k)              Investments debited from the special account (FMA Act section 39) | | (l)                 Total debits | | (m)            Balance carried to the next period (excluding investment balances – refer Table B) and as represented by:<br>(i)            Cash – transferred to the Official Public Account<br>(ii)         Cash – held by the agency; | | (n)              Total balance carried to the next period |

120.9           Agencies must report the information contained in the following table in relation to special accounts investment of public money in this sequence:

Table B Special Accounts Investment of Public Money

| (a)               Full official title of Special Account: Investment of Public Money under section 39 of the FMA Act | | (b)              Opening balance | | (c)               Investments made:<br>(i)            From special account<br>(ii)         Other | | (d)              Investment income | | (e)               Transaction charges | | (f)                Investments realised | | (g)               Closing Balance |

120.10       Investments made through the special account are generally external to the CRF and while the amounts stand to the credit of the special account, they are not included in the balance for the purposes of disclosing in Table A Special Accounts, they are disclosed in Table B Special Accounts Investment of Public Money.

120.11       Agencies that invest amounts standing to the credit of a special account must include an overview of the investment policy used.

120.12       Agencies that have special accounts that have not been used during the current year and comparative year, regardless of whether they have nil or positive balances, may make the following disclosures in the notes to the financial statements instead of preparing Tables A and B:

(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 accounts;

(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.

120.13       Where investments are made under an Act of Parliament other than section 39 of the Financial Management and Accountability Act 1997 (FMA Act), the same format as Table B in section 120.9 should be followed. The name of the relevant Act and section under which the investment is made must be noted.

120.14       Agencies must report moneys subject to trust law that stand to the credit of a special account adjacent to the special account disclosure.

120.15       Special accounts that have been determined as business operations pursuant to suborder 5.1.1 of the Financial Management and Accountability Orders 2008 are required to comply with section 7.1 of this schedule and prepare separate financial statements.

121      Reporting of Outcomes and Outputs

121.1           Entities in the general government sector must disclose outcomes and outputs related to departmental and administered items in accordance with this schedule.

121.2           Amounts disclosed in this division are to be rounded either to the nearest dollar or the nearest $1,000 in accordance with Division 13.

121.3           Outcome and output amounts disclosed must be net of refunds and adjustments.

121.4           The information in the following table:

Table A Net Cost of Outcome Delivery

must be disclosed by entities in the general government sector by outcome, for departmental and administered items:

| (a)               Expenses | | (i)                 Administered | | (ii)               Departmental | | (iii)            Total expenses | | (b)              Costs recovered  from provision of goods and services to the non-government sector | | (i)       Administered | | (ii)     Departmental | | (iii)  Total costs recovered | | (c)               Other external income | | (i)       Administered | | (ii)     Departmental | | (iii)  Total other external income | | (d)              Net cost/(contribution) of outcome |

121.5           The information in the following table:

Table B Major Classes of Departmental Income and Expenses by Output Groups and Outputs  

must be disclosed by entities in the general government sector by output, output group and outcome for income and expenses:

| (a)               Departmental expenses | | (c)               Total departmental expenses |

Funded by:

| (d)              Departmental income | | (e)               User charges | | (f)                Income from government | | (g)               Show each other relevant major class of income | | (h)              Total departmental income |

121.6           The information in the following table:

Table C Major Classes of Departmental Assets and Liabilities by Outcomes

must be disclosed by entities in the general government sector by outcome for assets and liabilities, with the exception of departmental assets and liabilities that are not reliably attributable to outcomes:

| (a)               Departmental assets | | (c)               Total departmental assets | | (d)              Departmental liabilities | | (e)               Show each relevant major class | | (f)                Total departmental liabilities |

121.7           The information in the following table:

Table D Major Classes of Administered Income, Expenses, Assets and Liabilities by Outcome

must be disclosed by entities in the general government sector by outcome, with the exception of administered assets and liabilities that are not reliably attributable to outcomes:

| (a)               Administered expenses | | (c)               Total administered expenses | | (d)              Administered income | | (e)               Show each relevant major class | | (f)                Total administered income | | (g)               Administered assets | | (h)              Show each relevant major class | | (i)                 Total administered assets | | (j)                Administered liabilities | | (k)              Show each relevant major class | | (l)                 Total administered liabilities |

121.8           Entities must attribute shared items using a basis that most accurately allocates the total cost, income, asset or liability to each output or outcome. If this basis differs from that used in preparing the Budget, additional disclosure must be included to explain the variation.

121.9           The attribution method used to apportion shared items must be reliable and must be disclosed in general terms in the text accompanying the tables.

121.10       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 income and expenses disclosed between the new and former outputs or outcomes, 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; and

(c)        report the assets and liabilities disclosed against the former outcomes as at the date of the change, and the new outcomes as at 30 June.

121.11       Outcomes are to be as specified in the Appropriation Acts and other applicable documentation relevant to the entity.

121.12       The amount in the total column for departmental and administered expenses in Table A Net Cost of Outcome Delivery must agree to the corresponding total in the entity’s income statement or schedule of administered items, respectively.

121.13       Entities must disclose the nature of other external revenue in Table A Net Cost of Outcome Delivery by major class. Where these include intra- or inter‑Government charges, such charges must be shown separately.

121.14       The amount in the total column for departmental income and expenses in Table B Major Classes of Departmental Income and Expenses by Output Groups and Outputs and for assets and liabilities in Table C Major Classes of Departmental Assets and Liabilities by Outcomes must agree to the corresponding total in the entity’s income statement and balance sheet respectively.

121.15       The amount in the total column for each item in Table D Major Classes of Administered Income, Expenses, Assets and Liabilities by Outcomes must agree to the corresponding line item in the entity’s schedule of administered items.

122      Compensation and Debt Relief in Special Circumstances

122.1           The financial statements must include a note showing departmental and administered expenses and/or liabilities including nil and immaterial balances, as relevant to the entity, in relation to each of the following:

(a)        Act of Grace payments made under subsection 33(1) of the Financial Management and Accountability Act 1977 (FMA Act) as approved by the Finance Minister (or delegate);

(b)       waivers of amounts owing to the Australian Government, (being amounts that the entity would, but for the waiver, have been entitled to receive on behalf of the Australian Government);

(i)            pursuant to subsection 34(1) of the FMA Act; and

(ii)         pursuant to other legislation, which must be specified;

(c)        payments made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme;

(d)       payments made under approved ex-gratia programmes, the nature of which must be identified; and

(e)        payments made in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act).

122.2           The note must disclose:

(a)        the number of cases and total amount expensed during the reporting period under each of these mechanisms specified. In addition, where any of the Act of Grace cases expensed during the reporting period include periodical payments for specified periods (paragraph 33(1)(b) of the FMA Act refers), the note must separately identify the number of such cases and the total amount expensed in relation to those cases.

(b)       the number and aggregate present value amount of those cases relating to any provisions at the end of the reporting period under each of these mechanisms specified. This requirement is particularly relevant where cases under the Act of Grace mechanism include periodical payments for specified periods past the reporting date, but may also apply to any of the other mechanisms in particular circumstances.

ANNEXURE A – FORMS OF FINANCIAL STATEMENTS

Introduction

A.1 The Forms of Financial Statements (Forms) set out the prescriptive content, layout, and formatting requirements for all Australian Government entities in compiling and presenting their 2008‑09 annual financial statements in compliance with Schedule 1 and the Australian Accounting Standards and associated authoritative requirements. The Forms have been designed to meet common disclosure requirements of agencies and authorities respectively and therefore do not address all disclosure requirements.

Application

A.2 Australian Government entities are required to present all disclosures necessary to give a true and fair view of their results and financial position. Entities are permitted:

(a)         to include further disclosures as they deem appropriate to meet their stakeholders’ information needs and be reflective of their operations including those that are required by Accounting Standards addressed in A.3 as applicable;

(b)        not to include components of the Forms that are not relevant to their operations or where no activity in either the current or previous financial year has taken place;

(c)         to alter or amend the numbering of notes but not their sequencing within the presentation of the financial statements as set out within the Forms except where amendments permitted under (a), and (b) above require such components of the Forms to be inserted, deleted or added, and to ensure the contextual and logical flow of information for stakeholders;

(d)        to aggregate line items that are not significant in understanding the entity’s operations; and

(e)         to amend disclosures such that they reflect the nature of the entity, its activities, financial results and position as at the reporting date. This includes amending Note 1, so that it appropriately discloses the entity’s accounting policies.

A.3 Entities should be aware that disclosure requirements for the following Standards, legislation and reporting requirements have not been incorporated into the Forms and where relevant must be included in the financial statements of the entity.

Standards, legislation and reporting requirements not addressed include:

• Corporations Act 2001
• AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards
• AASB 2 Share-based payment
• AASB 3 Business Combinations
• AASB 4 Insurance Contracts
• AASB 6 Exploration for and Evaluation of Mineral Resources
• AASB 8 Operating Segments
• AASB 111 Construction Contracts
• AASB 112 Income Taxes with respect to tax effect accounting
•  AASB 114 Segment Reporting
• AASB 119 Employee Benefits with respect to defined benefit post employment fund disclosures
• AASB 120 Accounting for Government Grants and Disclosure of Government Assistance
• AASB 124 Related Party Disclosures
• AASB 127 Consolidated and Separate Financial Statements
• AASB 129 Financial Reporting in Hyperinflationary Economies

• AASB 133 Earnings per Share
• AASB 134 Interim Financial Reporting
• AASB 139 Financial Instruments: Recognition and Measurement with respect to hedge accounting
• AASB 141 Agriculture
• AASB 1023 General Insurance Contracts
• AASB 1038 Life Insurance Contracts
• AASB 1039 Concise Financial Reports
• AASB 1049 Whole of Government and General Government Sector Reporting
• AASB 1051 Land Under Roads
• AAS 25 Financial Reporting by Superannuation Plans

This listing is not exhaustive. Compliance with these additional disclosures is required where appropriate to present a true and fair view.

Inclusions here:

Forms of Financial Statements for:

• Not-for-Profit FMA and CAC; and
• For-Profit