## 1. ABOUT THIS REPORT

The Department of Jobs, Precincts and Regions (DJPR) was established on 1 January 2019 as a government department of the State of Victoria. It is an administrative agency acting on behalf of the Crown. These annual financial statements represent the audited general purpose financial statements for the six month period ended 30 June 2019. As DJPR was established on 1 January 2019, there are no prior year comparatives. A description of the nature of its operations and its principal activities is included in the Report of operations, which does not form part of these financial statements.

#### Basis of accounting preparation and measurement

These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basis is specifically disclosed in the note associated with the item measured on a different basis. The accrual basis of accounting has been applied in preparing these financial statements, whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of DJPR. Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions to or distributions by owners have also been designated as contributions by owners. Transfers of net assets arising from administrative restructures are treated as distributions to or contributions by owners. Transfers of net liabilities arising from administrative restructures are treated as distributions to owners. Judgements, estimates and assumptions are required to be made about financial information being presented. The significant judgements made in the preparation of these financial statements are disclosed in the notes where amounts affected by those judgements are disclosed. Estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in applying Australian Accounting Standards (AAS) that have significant effects on the financial statements and estimates are disclosed in the notes under the heading: ‘Significant judgements or estimates’. These financial statements cover DJPR as an individual reporting entity and include all the controlled activities of the department. The Rural Assistance Commissioner agency has been consolidated into DJPR's financial statements pursuant to a determination made by the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (FMA). This agency is reported in aggregate and is not controlled by DJPR. Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date on which control commenced. Where control ceases during a financial period, the entity’s results are included for that part of the period in which control existed. Where entities adopt dissimilar accounting policies and their effect is considered material, adjustments are made to ensure consistent policies are adopted in these financial statements. In preparing consolidated financial statements for DJPR, all material transactions and balances between consolidated entities are eliminated.

#### Statement of compliance

These general purpose financial statements have been prepared in accordance with the FMA and applicable AASs which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049).

12

DJPR Annual Report 2018–19