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

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

Minister for Finance and Deregulation

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).

[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

[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.