26Restructures of administrative arrangements

26 Restructures of administrative arrangements

Guide to this section

The purpose of this section is to set out the reporting and disclosure requirements for when a restructure of administrative arrangements has occurred.

When the Government changes the functions, outcomes and activities reporting entities are responsible for (such as via an Administrative Arrangements Order or other legislation) then the reporting entities need to report on the change in structure of the entity.

(1) Where a restructure of administrative arrangements has occurred during the reporting period as per AASB 1004 Contributions, the relevant reporting entities must: (a) disclose details of the restructure of administrative arrangements in a note in the financial statements; and (b) recognise assets and liabilities transferred at their net book value immediately prior to transfer. (1A) Where: (a) during the reporting period, a Commonwealth entity has ceased to exist, or some of a Commonwealth entity’s functions have been transferred; and (b) Division 4 of Part 2‑3 of the Public Governance, Performance and Accountability Rule 2014 applies to the entity; the relevant reporting entity must prepare financial statements in accordance with that Division.

Note: Division 4 of Part 2‑3 of the Public Governance, Performance and Accountability Rule 2014 sets out special reporting requirements that apply when:

(a) a Commonwealth entity has ceased to exist (see Subdivisions A and C of that Division); or
(b) a Commonwealth entity has not ceased to exist but some of the Commonwealth entity’s functions have been transferred (see Subdivisions B and C of that Division).

(2) For the purposes of this section, the terms: (a) ‘government department’ in AASB 1004 means any Government controlled entity; and (b) ‘legislation or other authority’ in the definition of a restructure of administrative arrangements in AASB 1004 means one of the following: (i) a decision of the Cabinet or Prime Minister; (ii) an Administrative Arrangements Order (AAO); (iii) an Act of Parliament or a Regulation under an Act; or (iv) a written agreement between the relevant portfolio minister(s) and the Finance Minister or the Prime Minister, as appropriate.