Australian Accounting Standards reporting framework, including AAS 31

The AAS reporting framework, being the AEIFRS and AAS 31, requires the preparation of accrual-based general purpose financial reports showing government assets, liabilities, income, expenses and cash flows. Reporting under this framework is intended to provide a consolidated overview of the financial performance and financial position of the Government.

There are four main general purpose statements that must be prepared in accordance with the AAS framework. These are:

• an income statement, which includes an operating result;
• a balance sheet, which shows net assets;
• a statement of changes in equity, which shows movements in equity; and
• a cash flow statement, which includes net increase/decrease in cash held.

In addition to these general purpose statements, notes to the financial statements are required. These notes include a summary of accounting policies, disaggregated information and other disclosures required by AAS.

A full set of AAS financial statements and accompanying notes prepared for the general government sector can be found in Part 3. These statements are derived from audit cleared financial statements for the material agencies within the general government sector, with the exception of the Department of Defence, Defence Materiel Organisation, the Department of Education Science and Training and Indigenous Business Australia, for which audit opinions are pending. The statements also include audit cleared financial statements from the majority of the 100 or so small general government sector agencies. Nevertheless, the financial statements in this report include the financial results for the Department of Defence, Defence Materiel Organisation, the Department of Education Science and Training and Indigenous Business Australia as at the time of publication. Final 2005-06 audit opinions for these four agencies will be included in their respective annual reports and in the Australian Government Consolidated Financial Statements for the year ended 30 June 2006 which will be released at a later time.