Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:41
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 41
Character Range: 9596–10626

41                    A government or other entity may initially incur, and then settle, obligations in respect of the wages, salaries and other costs of the employees of a government department during the reporting period.  Similarly, other expenses of operating the government department during the reporting period, such as building occupancy expenses, may be incurred and settled by the government or other entity.  In such cases, the government department does not recognise a liability when the expenses are initially incurred.  Rather, the government department recognises income equivalent to the fair value of the employee services or other assets it receives, and recognises expenses of the same amount to reflect that the economic benefits represented by those employee services or other benefits have been consumed by the government department.  For employee services, this normally occurs when the services are provided, but in some instances the costs of these services forms part of the cost of acquiring an asset.