Document ID: chunk:federal_register_of_legislation:F2022C01123:front:0:p4
Version: federal_register_of_legislation:F2022C01123
Segment Type: other
Provision Reference: 
Character Range: 8562–11741

on payments that is recoverable from the ATO;
                                 (b) GST received on taxable supplies that is payable to the ATO; and
                                 (c) payments to/refunds from the ATO of GST amounts.
Reporting entity                 an applicable entity mentioned in subsection 6(1) for which financial statements must be prepared.

  Division 3 -  Applicable entities
  6 Applicable entities

Guide to this section

The purpose of this section is to set out which Commonwealth entities need to prepare financial statements.

Those entities that are captured by the definition below are reporting entities and need to prepare financial statements in accordance with this rule.

  (1) Financial statements must be prepared for the following:
       (a) each Commonwealth entity that is not the parent entity in an economic entity; and
       (b) each economic entity, comprising the Commonwealth entity and its subsidiaries.
         Note: Financial statements are not required to be prepared under this rule for
           (a) a company for the purposes of the Corporations Act 2001; or
           (b) the subsidiary of a Commonwealth entity;
         as these are not Commonwealth entities.
  (2) Where an entity is the parent entity in an economic entity, it must either:
       (a) prepare parent entity financial statements as well as consolidated financial statements; or
       (b) disclose parent entity supplementary information as prescribed in Regulation 2M.3.01 of the Corporations Regulations 2001 in a note to the consolidated financial statements of the economic entity.

  Part 2 -  General Commonwealth entity financial reporting requirements

Guide to this Part

The purpose of this Part is to mandate the principles of financial reporting requirements for reporting entities.  Subsection 42(2) of the PGPA Act states that "the annual financial statements [of Commonwealth entities] must comply with the accounting standards [i.e. AAS] and any other requirements prescribed by the rules, and present fairly the entity's financial position, financial performance and cash flows".

  7 Authoritative requirements and materiality
  (1) As per subsection 42(2) of the PGPA Act, the financial statements of each reporting entity must comply with:
       (a) all applicable requirements of this rule, where the information resulting from applying this rule is considered material, or as specifically stated in this rule; and
       (b) applicable AAS and Interpretations issued by the AASB that apply for the reporting period.
   (2) For the purposes of paragraph (1)(a), materiality must be assessed in accord with the relevant AAS.
  8 Departmental and administered: classification and reporting

Guide to this section

The purpose of this section is to state that this rule applies to both departmental and administered reporting.

  (1) This rule applies to both departmental and administered reporting unless otherwise specified.
  (2) Reporting entities must distinguish between 'departmental' and 'administered' in the financial statements for all disclosures outlined in this rule.
  (3) The financial statements of reporting