The Financial Management Act, Annual Reporting Guidelines for 2001/02 dated 30 May 2002, were prepared and agreed to by the Department of Treasury and Finance (DTF) and the Victoria Auditor-General's Office (VAGO), on the basis that ED 105 'Statement of Financial Performance: Amendments to AASB 1018/AAS1' would be approved by the AASB.
Paragraphs 5.2(g), 5.3 and 5.6 in regard to net gains or losses on the disposal of property, plant and equipment, where not approved for inclusion at the recent AASB meeting. Therefore the Annual Reporting Guidelines need to reflect this decision, resulting in the retention of reporting as revenues 'proceeds from sale of non current assets' and as expenses 'written down value of assets sold' in the statement of financial performance.
Additionally the reissued AASB 1018 requires that AAS 5 Materiality applies to the classification of expenses. The standard requires that each material class of expenses is separately disclosed, and unclassified expenses are immaterial both individually and in aggregate (paragraph 5.2.5). Please be aware of this issue when classifying expenses into 'Other Expenses', and that 'Other Expenses' should not exceed the materiality threshold of 10% of total expenses.
Due to the discontinuance of reporting 'Income received in Advance' as per circular 17/2002, further disclosure requirements are required for entities that received a qualification on this issue in 2000/1 financial year. DHS has agreed the with VAGO the disclosure requirements that will result in unqualified audit opinions for the resolution of previous qualifications in regard to income received in advance (included in attached addendum - PDF File 22KB)
Please replace the appropriate pages in your guidelines with the attachments to this document.
For any remaining queries that you may have please contact Duncan McColl, Manager Financial Reporting on 9616-8316 or email firstname.lastname@example.org
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