Attachment B

Budget financial statements

The budget financial statements consist of an operating statement, balance sheet, cash flow statement and statement of other economic flows (reconciliation of net worth) for the Australian Government general government sector. The budget financial statements are based on GFS standards with the exception of the divergences discussed in Attachment A.

Table 13: Australian Government general government sector operating statement

1. The term fiscal balance is not used by the ABS.

Table 14: Australian Government general government sector balance sheet

1. In 2005-06 equity includes the valuation of the Telstra shareholding, which is valued at the average of the daily share price over a 90-day period.
2. Net worth is calculated as total assets minus total liabilities.
3. Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table 15: Australian Government general government sector cash flow statement^(a)

Table 15: Australian Government general government sector cash flow statement^(a)
(continued)

1. A positive number denotes a cash inflow, a negative sign denotes a cash outflow.
2. The acquisition of assets under finance leases decreases the underlying cash balance. The disposal of assets previously held under finance leases increases the underlying cash balance.
3. The term underlying cash balance is not used by the ABS.

Table 16: Australian Government general government sector statement of other
economic flows (reconciliation of net worth)

1. Adjustments in opening net worth arise from a change in 2004-05 outcomes for the Australian Taxation Office and the Department of Defence and the impact of moving to new international accounting standards.
2. Revaluations of equity reflects changes in the market valuation of commercial entities, including for 2005-06 a change in the value of the Telstra shareholding which is valued at the average daily share price over a 90-day period. This line also reflects any equity revaluations at the point of disposal or sale.
3. Largely reflects revaluations of assets and liabilities.

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