AAS 31 Financial Reporting by Governments requires accrual-based general purpose financial reports showing assets, liabilities, revenues, expenses and cash flows, for each government. Reporting under this framework is intended to provide a consolidated overview of the financial performance and financial position of the Government.
There are three main general purpose statements required by AAS 31. These are:
- a statement of financial performance, which includes an operating result;
- a statement of financial position, which shows net assets; and
- a statement of cash flows, which includes net increase/decrease in cash held.
In addition to these financial statements, notes to the financial statements are required. These notes include a summary of accounting policies, disaggregated information and other disclosures required by Australian Accounting Standards.
A full set of AAS financial statements and accompanying notes prepared for the general government sector can be found in Part 3, including a note to disclose the anticipated impacts of the Australian Equivalents to International Financial Reporting Standards for the Australian Government from 2005-06. 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 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 and Indigenous Business Australia as at the time of publication. Final 2004-05 audit opinions for these two agencies will be included in their respective annual reports and in the Australian Government Consolidated Financial Statements for the year ended 30 June 2005 which will be released at a later time.