Financial Management and Accountability (Financial Statements 2001-2002) Amendment Orders (Cth)

Financial Management and Accountability (Financial Statements 2001-2002) Amendment Orders

I, NICK MINCHIN, Minister for Finance and Administration, make these Orders under subsection 63 (1) of the Financial Management and Accountability Act 1997.

Dated 8 May  2002

Nick Minchin

Minister for Finance and Administration

1              Name of Orders

These Orders are the Financial Management and Accountability (Financial Statements 2001-2002) Amendment Orders.

Note   Other matters relating to Agencies are dealt with in other Orders made by the Minister under subsection 63 (1) of the Financial Management and Accountability Act 1997.

2              Commencement

These Orders commence on gazettal.

3              Financial statements for financial years ending on or after 30 June 2002

For subsection 49 (2) of the Financial Management and Accountability Act 1997, Schedule 1 sets out amendments to Schedule 1 to the Financial Management and Accountability (Financial Statements 2001-2002) Orders which prescribe the requirements for the preparation of annual financial statements for the financial year ending on 30 June 2002, or a financial year ending after that date but before 30 June 2003.

Note   Schedule 1 is identical to Schedule 1 to the Commonwealth Authorities and Companies (Financial Statements 2001–2002) Amendment Orders. The purpose of having identical requirements is to achieve uniformity in financial reporting across the Commonwealth public sector which will assist in the preparation of annual financial statements in relation to the Commonwealth by the Finance Minister under section 55 of the Financial Management and Accountability Act 1997.

Schedule 1        Annual financial statements

[1]    omit           from Schedule 1 to the Financial Management and Accountability (Financial Statements 2001-2002) Orders

14.1Subject to Policy 7 (Restructuring) land, buildings, infrastructure, plant and equipment (excluding those held as investment properties) must initially be recorded at cost of acquisition, in accordance with Australian Accounting Standard 21 (AAS 21).

14.2In accordance with the transitional provisions at paragraph 10.7(b) of Australian Accounting Standard 38 – ‘Revaluation of Non-Current Assets’, entities must continue to revalue land, buildings, infrastructure, plant and equipment at their deprival value for financial years ending on or before 30 June 2002.

[2]     insert                   in Schedule 1 to the Financial Management and Accountability (Financial Statements 2001-2002) Orders

14.1Subject to clause 14.3, agencies and authorities must continue to progressively revalue land, buildings, infrastructure, plant and equipment using the deprival basis of valuation for the financial year ending 30 June 2002  (AASB 1041 Revaluation of Non-Current Assets paragraph 8.10(b)).

14.2For financial periods beginning on or after 1 July 2002, the fair value basis must be applied to revaluations of the following asset classes in accordance with Australian Accounting Standard AASB 1041:

(a)Land;

(b)Buildings;

(c)Subject to clause 14.3, infrastructure, plant and equipment; and

(d)Heritage and cultural assets.

14.3For financial periods beginning on or after 1 July 2001, the cost basis must be applied to specialist military equipment assets.