Federal Register of Legislation - Australian Government

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Orders/Other as made
This instrument amends the Finance Minister's Orders (Financial Statements for reporting periods ending on or after 1 July 2011) to mandate financial reporting obligations for Commonwealth entities’ annual financial statements.
Administered by: Finance
Registered 15 May 2013
Tabling HistoryDate
Tabled HR27-May-2013
Tabled Senate17-Jun-2013
Date of repeal 16 May 2013
Repealed by Division 1 of Part 5A of the Legislative Instruments Act 2003

I, PENELOPE YING YEN WONG, Minister for Finance and Deregulation, make this instrument under the relevant provisions as set out below. 

Dated 23 April 2013

PENELOPE YING YEN WONG

The relevant provisions are:

·         subsections 49(2) and 63(1) of the Financial Management and Accountability Act 1997 (FMA Act) in relation to how financial statements must be prepared by FMA Act Agencies;

·         subsection 48(1) and subclause 2(1) of Schedule 1 of the Commonwealth Authorities and Companies Act 1997 in relation to how financial statements must be prepared by Commonwealth authorities;

·         subsection 47(1) of the High Court of Australia Act 1979 in relation to how financial statements must be prepared by the High Court of Australia;

·         section 193H of the Aboriginal and Torres Strait Islander Act 2005 in relation to how the accounts and financial statements must be prepared for the Land Account;

·         subsections 50B(2) and (4) of the Defence Service Homes Act 1918 in relation to how financial statements must be prepared by the Defence Service Homes Corporation; and

·         subsections 43(1) and (3) of the Natural Heritage Trust of Australia Act 1997 in relation to how financial statements must be prepared for the Natural Heritage Trust of Australia Account.

 

 

1              Name of Orders

                These Orders are the Finance Minister’s Amendment Orders (Financial Statements for reporting periods ending on or after 1 July 2012).

Note:   These Orders relate to the preparation of financial statements.

2              Commencement

                These Orders are taken to have commenced on 1 July 2012.

3              Amendment to the Finance Minister’s Orders (Financial Statements for reporting period ending on or after 1 July 2012)

                Schedule 1 amends Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2011).


 

Schedule 1

Amendments to the Finance Minister’s Orders (Financial Statements for reporting periods ending on or after 1 July 2012)

 

[1]     Schedule 1, Division 4

          Insert after heading ‘4 Definitions’

          Note: For reporting periods ending on or after 1 July 2011 and    ending before 1 July 2012, amendments contained in Schedule 1          of these Orders are not applicable.

          For reporting periods ending on or after 1 July 2012, the list of     definitions was amended to include Standard Parameters. This           enables the term to be referenced in other Divisions.

[2]     Schedule 1, Division 4

          Insert between the definitions of Special Public Money and   Statutory Charges

Standard Parameters

A document containing specified rates and amounts to be used by an entity in the preparation of their financial statements. It is available from Finance’s website.

[3]     Schedule 1, Division 8

          Insert after heading ‘8 Authoritative Requirements’

          Note: For reporting periods ending on or after 1 July 2011 and    ending before 1 July 2012, amendments contained in Schedule 1          of these Orders are not applicable.

          For reporting periods ending on or after 1 July 2012, the list of     documents to which an entity must ‘have regard to’ in section      8.2(b)(iv) was amended to give specific reference to Standard        Parameters.

 

 

 

[4]     Schedule 1, Section 8.2(b)(iv)

          After Accounting Guidance Notes, insert

          , Standard Parameters

[5]     Schedule 1, Division 17

          Insert after heading ‘17 Approved Exemptions’

          Note: For reporting periods ending on or after 1 July 2011 and    ending before 1 July 2012, amendments contained in Schedule 1          of these Orders are not applicable.

          For reporting periods ending on or after 1 July 2012, section        17.14 has been amended to replace specific executive     remuneration thresholds with a cross reference to the executive     remuneration thresholds contained in the Standard Parameters        document (for the purpose of disclosures under Division 23).

[6]     Schedule 1, Section 17.14

          Omit everything, substitute

The Department of Defence (Defence) may exclude Star Ranked reservists not employed on a continuous full time service basis from the following disclosures:

a)         section 23.8, where their remuneration is less than the executive remuneration Table A threshold; and

b)         sections 23.14 and 23.20, where their reportable remuneration is less than the respective executive remuneration Tables B or C thresholds.

If used, this exemption must be referenced in a footnote to the disclosures.

 

 

 

 

 

[7]     Schedule 1, Section 23.1

          Insert after heading ‘23 Director/Senior Executive Remuneration’

          Note: For reporting periods ending on or after 1 July 2011 and    ending before 1 July 2012, amendments contained in Schedule 1          of these Orders are not applicable.

          For reporting periods ending on or after 1 July 2012, the     following sections have been amended as follows:

(i)                 sections 23.2, 23.3 and 23.22 contain minor edits;

(ii)               sections 23.8, 23.14, 23.20 and 23.24 now explicitly reference Part K of the Finance Minister’s Orders for consistency;

(iii)             sections 23.6(b) and 23.15(a) have been updated  to replace specific executive remuneration thresholds for the purpose of disclosures under Division 23 with a cross reference to the executive remuneration thresholds contained in the Standard Parameters document;

(iv)              definitions of reportable allowances, reportable remuneration, reportable salary contained in section 23.1 as well as the subheading for Table C have been updated to ensure consistent use of terminology;

(v)                definition of executive remuneration in section 23.1 was updated to reference AASB 119 rather than AGN 2007/2 (Revised); and

(vi)              definition of contributed superannuation contained in section 23.1 was updated to provide clarity regarding the requirements for defined benefit schemes and defined contribution schemes and to remove the need to separate salary sacrificed superannuation from total amounts salary sacrificed, with consequential amendments to the definitions of reportable remuneration and reportable salary, also contained in section 23.1.

 

 

 

 

 

[8]     Schedule 1, Section 23.1

          omit from the definition of Contributed superannuation

          Used for the ‘contributed superannuation’ column in Table B and         Table C, and is equal to the actual superannuation contributions
          as per the individual’s payslips during the reporting period,          including employer contributions and any salary sacrificed   superannuation. If actual superannuation contributions are not      shown on payslips, they must still be disclosed in Tables B and C.

          substitute

          For individuals that are in a defined contribution scheme (e.g.,
          PSSap), ‘contributed superannuation’ should include the defined                    contribution amounts. This amount is typically located on the
          individuals’ payslips.

 

For individuals that are in a defined benefit scheme (e.g., PSS and CSS), ‘contributed superannuation’ should include the Notional Employer Contribution Rate (NECR) amount, Employer Productivity Superannuation Contribution (also known as the Productivity Component) and any Additional Lump Sum Contribution paid during the financial reporting period.

[9]     Schedule 1, Section 23.1

          omit from the definition of Executive remuneration

          As defined in Accounting Guidance Note No. 2007/2 (Revised) –         Identification of Executive Remuneration.

          substitute

          Includes all senior executive ‘employee benefits’ (as defined in    AASB 119).

 

 

 

 

 

[10]   Schedule 1, Section 23.1

          omit from the definition of Reportable allowances

          ‘allowances’ column

          substitute

          ‘reportable allowances’ column

[11]   Schedule 1, Section 23.1

          omit from the definition of Reportable remuneration

          ‘total’ column

          substitute

          ‘total reportable remuneration’ column

[12]   Schedule 1, Section 23.1

          omit from the definition of Reportable remuneration

          Reportable remuneration does not include amounts from the        ‘lump sum’ item on the individual’s payment summary.

[13]   Schedule 1, Section 23.1

          omit from the definition of Reportable salary

          ‘salary’ column

          substitute

          ‘reportable salary’ column

 

 

 

 

 

 

 

[14]   Schedule 1, Section 23.1

          omit from the definition of Reportable salary

          (a) gross payments;

          substitute

          (a) gross payments (excluding bonuses);

[15]   Schedule 1, Section 23.1

          omit from the definition of Reportable salary

          less any bonuses paid in the financial reporting period.

          substitute

          plus any salary sacrificed amounts.

[16]   Schedule 1, Section 23.2

          omit

          they

          substitute

          the individual

[17]   Schedule 1, Section 23.3

          omit

          Entities are

          substitute

          An entity is

 

 

 

 

 

 

[18]   Schedule 1, Section 23.6(b)

          omit

          $150,000

          substitute

          the executive remuneration Table A threshold (as specified in the          Standard Parameters document)

[19]   Schedule 1, Section 23.8

          omit everything after

          disclose

          substitute

          Table A in accordance with Part K.

[20]   Schedule 1, Section 23.14

          omit everything, substitute

          Entities must disclose Table B in accordance with Part K.

[21]   Schedule 1, Division 23

          omit

          Table C: Other highly paid staff

          substitute

          Table C: Average annual reportable remuneration paid to other   highly paid staff during the reporting period

 

 

 

 

 

 

 

[22]   Schedule 1, Section 23.15(a)

          omit

          $150,000 or more for the financial reporting period;

          substitute

          equal to or greater than the executive remuneration Table C          threshold (as specified in the Standard Parameters document);

[23]   Schedule 1, Section 23.20

          omit everything after

          disclose

          substitute

          Table C in accordance with Part K.

[24]   Schedule 1, Section 23.22

          after

          or

          insert

          a

[25]   Schedule 1, Section 23.24

          omit everything, substitute

Entities must disclose director disclosures in accordance with Part K.