Appendix B: Budget financial statements

The budget financial statements consist of an operating statement, balance sheet, cash flow statement and statement of other economic flows (reconciliation of net worth) for the Australian Government general government sector. The budget financial statements are based on GFS standards with the exception of the divergences discussed in Appendix A.

Table B1: Australian Government general government sector operating statement

1. The term fiscal balance is not used by the ABS.

Table B2: Australian Government general government sector balance sheet

1. For 2005‑06 and the forward years, the netting of assets — investments, loans and placements — and liabilities — government securities — has been removed so that both lines are now reported on a gross basis.
2. Equity includes the valuation of the Telstra shareholding, which is valued at the average of the daily share price over a 90-day period, except in the sale years where the valuation is based on the expected sale price.
3. Net worth is calculated as total assets minus total liabilities.
4. Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table B3: Australian Government general government sector cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. The acquisition of assets under finance leases decreases the underlying cash balance. The disposal of assets previously held under finance leases increases the underlying cash balance.

Table B4: Australian Government general government sector statement of
other economic flows (reconciliation of net worth)

1. Decrease in net worth arising from a change in recognition of family tax benefits and other expenses from a cash to an accrual basis.
2. Revaluations of equity reflect changes in the market valuation of commercial entities, including a change in the value of the Telstra shareholding which is valued at the average daily share price over a 90-day period, except in the sale years where the valuation is based on the expected sale price. This line also reflects any equity revaluations at the point of disposal or sale.
3. Largely reflects revaluation of assets and liabilities and Australian Equivalents to International Financial Reporting Standards adjustments.

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