Document ID: chunk:federal_register_of_legislation:F2022C01123:reg:27:p7
Version: federal_register_of_legislation:F2022C01123
Segment Type: reg
Provision Reference: reg 27 (pt 7/15)
Character Range: 57269–60300

specified in the Appropriation Acts - at the later of:
           (i) the commencement date of the Appropriation Act; and
           (ii) the commencement of the financial period the appropriation relates to (i.e., when the appropriation is effective).
  (3) Departmental appropriations (except for special appropriations) must be recognised at the amounts specified in the Appropriation Acts in the year of appropriation, adjusted, where applicable, for formal additions and reductions. For departmental appropriations:
       (a) amounts designated as contribution by owners must be recognised as equity;
       (b) loan appropriations must be recognised as increases in borrowings (they are not revenue); and
       (c) all other amounts must be recognised as revenue.
  39 Equity returns and adjustments

Guide to this section

The purpose of this section is to set out the required recognition and accounting for returns of departmental equity.

Departmental equity includes surplus revenue received by the reporting entity in a previous reporting period that is now accounted for as equity (or net assets) of the entity in the current reporting period.

Departmental equity returns generally relate to these surplus revenue amounts from prior accounting periods being returned to the OPA.

Any amounts now being transferred back to the OPA must be recognised as a return of capital through an adjustment of Departmental equity, not an adjustment to revenue on the statement of comprehensive income, as it does not relate to revenue for the current reporting period.

  (1) Departmental equity returns must be recognised as a return of capital by adjusting contributed equity (not as a reduction in, or refund of, revenue).
  (2) Departmental equity returns:
       (a) occur where an entity:
           (i) relinquishes control of funds which had been appropriation revenue or contributed equity in a previous reporting period; or
           (ii) makes a non-reciprocal transfer to the OPA other than as a dividend referred to in section 23 (liabilities relating to dividends); and
       (b) are recognised in the financial statements at the earliest of:
           (i) the date the appropriation amount is reduced as a consequence of Government policy;
           (ii) the date of effect of a Ministerial direction; and
           (iii) where (i) and (ii) are not applicable, the date of the transfer to the OPA.
  40 Formal additions and reductions

Guide to this section

The purpose of this section is to establish what qualifies as a formal addition or reduction to appropriation revenue.  This is determined by an entity losing or gaining control of an appropriation during the reporting period.

Reporting entities have to report all appropriations recognised in the reporting period in their primary financial statements.

Reporting entities also have to disclose actual appropriations received and applied in the reporting period in the appropriation disclosure notes.

It may arise when there is a formal reduction