Document ID: chunk:federal_register_of_legislation:F2022C01123:front:0:p7
Version: federal_register_of_legislation:F2022C01123
Segment Type: other
Provision Reference: 
Character Range: 16938–20044

of accounting treatments available for Commonwealth entities under certain AAS and prescribes the accounting treatment to be applied for those standards. This will result in a consistent approach in financial reporting across the Commonwealth and enable a whole of Government consolidation to proceed.

  12 Presentation of financial statements
  When applying AASB 101 Presentation of Financial Statements in preparation of financial statements, reporting entities must present all items of income and expense recognised in a period in a single statement of comprehensive income.
  13 Statement of cash flows
  When applying AASB 107 Statement of Cash Flows in preparation of financial statements, reporting entities must:
       (a) present a cash flow statement using the direct method in compliance with AASB 107;
       (b) present dividends paid as a component of financing activities; and
       (c) show administered cash flows to/from the Official Public Account (OPA) as adjustments to administered cash held by an entity, rather than as cash flows related to operating or other activities.
  14 Accounting for Government grants and disclosure of Government assistance
  (1) When applying AASB 120 Accounting for Government Grants and Disclosure of Government Assistance in preparation of financial statements, reporting entities that are for-profit entities must:
       (a) recognise non-monetary government grants at fair value and not at nominal amount;
       (b) present government grants related to assets as deferred income and not as a deduction to the carrying amount of the asset; and
       (c) present government grants related to income as income in the statement of comprehensive income and not deduct them from the related expense.
  (2) To the extent that receipts under the Paid Parental Leave Scheme are regarded as income, paragraph (1)(c) does not apply to these receipts.
  15 Borrowing costs
  When applying AASB 123 Borrowing Costs in preparation of financial statements, reporting entities that are not-for-profit entities must expense borrowing costs as incurred.
  16 Financial instruments
  (1) When applying AASB 7 Financial Instruments: Disclosures, AASB 9 Financial Instruments and AASB 132 Financial Instruments: Presentation in preparation of financial statements, reporting entities must apply subsections (2) to (8).
Financial liabilities
  (2) Unless otherwise required under AASB 9, an entity must use the same classification, for a financial liability that existed at the end of the last reporting period that began before 1 January 2018, as the entity used for the liability for that period.
Expected credit losses
  (3) If permitted under an AAS, entities must apply, for the following, the simplified approach for recognition of expected credit losses available under AASB 9:
       (a) trade receivables;
       (b) contract assets (subject to subsection (4));
       (c) lease receivables.
  (4) Paragraph (3)(b) applies in relation to:
       (a) the first reporting period to which AASB 15 Revenue from Contracts with Customers applies; and
       (b)