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Notes to the financial statements: Overview

The basis of preparation

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The Financial Statements have been prepared in accordance with:

  • Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015; and
  • Australian Accounting Standards and Interpretations—Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the operating result or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

New accounting standards

All new and revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a material effect, on the APSC’s financial statements.

Accounting judgements and estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

  • cash on hand and
  • cash held by outsiders

Inventories

Inventories held for distribution are valued at cost, adjusted for any loss in service potential.

Contingent assets and liabilities

The APSC had no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2017 (2016: nil).

Taxation

The APSC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST except:

  • where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  • for receivables and payables.

Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Contingent assets and liabilities

The APSC had no quantifiable or unquantifiable administered contingent assets or liabilities as at 30 June 2017 (2016: nil).

Breach of section 83 of the Constitution

The possibility of breaches of section 83 of the Constitution for the APSC’s administered payments was investigated and confirmed in prior years. In order to reduce the risks of non-compliance to an acceptable low level, changes were made to the Remuneration Tribunal Act 1973 which were enacted on 28 May 2013.

Reviews conducted by drawing entities identified that no payments (2016: No payments) were made without legal authority in contravention of section 83 of the Constitution for payments reported under the Remuneration Tribunal Act 1973.

Events after the reporting period

After 30 June 2017, a lease for office accommodation for $9.7 million over 5 years was transferred to the Department of Social Services. This transfer took effect from 21 August 2017. There were no other subsequent events that had the potential to affect the ongoing structure and financial activities of the APSC for either departmental or administered activities.