AASB 101 Presentation of Financial Statements (AASB101) provides for additional disclosures in the notes to the financial statements where it is considered that application of Australian Accounting Standards (AAS) does not result in the fair presentation of the financial statements.

It would be extremely unusual for the application of AAS not to result in fair presentation. If an agency considers that departure from AAS is necessary to achieve fair presentation, it must consult with Treasury.

The Australian Accounting Standards (AASB 136 Impairment of Assets) define a not-for-profit entity as an entity whose principal objective is not the generation of profit. As the principal objective of an Agency is not the generation of profit, an Agency is a not-for-profit entity.

In applying the Model Statements, an Agency may find that some disclosures are not required because it does not engage in some of the transactions disclosed in the Model Statements. Such disclosures may be removed from the Agency’s financial statements without an exemption from this Treasurer’s Instruction.

Disclosures in an Agency’s financial statements providing additional information that is not contained in the Model Statements do not constitute a variation from the Model Statements.

The Model Statements are available from the Treasury Web site through the following link.

Model Departmental Financial Statements (incorporates cross references to Accounting Standards and Treasurer's Instructions) PDF

Model Departmental Financial Statements - M/S Word Template

Mandatory Presentation Format

Paragraph 88 of AASB 101 allows expenses to be classified based on either their nature or their function. The Model Statements present expenses in the Income Statement by nature. Classification of expenses by nature provides more relevant and reliable information than classification by function.

Paragraph 51 of AASB 101 allows the presentation of amounts in the Balance Sheet in order of liquidity rather than based on current/non-current classifications. The Model Statements adopt a liquidity presentation because it better reflects the operational cycle of an Agency.

Presentation of Budget Estimates

The presentation of budget information on the face of the statements is mandatory from 2006-07 onwards. Presentation of budget information enhances accountability. Budget information must be based on original budget estimates as published in the Budget Papers for the relevant year.

The Model Statements disclose details for each Output Group (as defined in the Budget Papers for the relevant year), including:

• summarised revenues and expenses for each Output Group;
• total expenses for each Output within each Output Group; and
• original budget estimates and prior year comparatives in relation to the above items.

The Model Statements include a note disclosing details of cash outflows relating to Capital Investment Program and Special Capital Investment Funds projects, including:

• total cash outflows for each project;
• original estimates and prior year comparatives for the above cash flows; and
• the classification of total cash outflows in the Statement of Cash Flows.

Additional Disclosure Requirements

The following items must be displayed separately on the face of the Income Statement:

• Revenue from Appropriations; and
• Revenue from Special Capital Investment Funds.

The Model Statements disclose, as part of the schedule of commitments, the total value of commitments relating to Capital Investment Program and Special Capital Investment Funds projects.

The Model Statements disclose balances of individual Accounts within the Special Deposits and Trust Fund comprising the balance of cash and deposits held.

The Model Statements provide a description of any material transaction or balance where that transaction or balance is unusual or specific to government. Such transactions include, but are not limited to, loan advances and equity investments. The reason for holding an equity investment must be included in the description.

Location of Specific Disclosures

The schedules of administered income and expenses, assets and liabilities and cash flows are presented as the first note to the financial statements in the Model Statements.

The structure, format and content of notes to administered schedules of income and expenses, assets and liabilities and cash flows must be consistent with the structure, format and content of the notes to the controlled financial statements.

Details for each Output Group are presented immediately following the accounting policy notes to the financial statements (Note 3).