Section 1: Agency overview and resources
1.1 Strategic direction statement
The Office of the Australian Accounting Standards Board (AASB) is an Australian Government agency under the Australian Securities and Investments Commission Act 2001.
The functions of the AASB are to:
- develop a conceptual framework for the purpose of evaluating proposed accounting standards and international standards;
- make accounting standards under section 334 of the Corporations Act 2001 for the purposes of the corporations legislation;
- formulate accounting standards for other purposes;
- participate in and contribute to the development of a single set of accounting standards for world‑wide use; and
- facilitate the Australian economy by reducing the cost of capital, enabling Australian entities to compete effectively overseas, leaving accounting standards that are clearly stated and easily to understand, and to maintain investor confidence in the Australian economy (including its capital markets).
The vision of the AASB is to build on its reputation as a leading national standard setter and be recognised as a global centre of excellence, delivering a truly distinctive contribution to the development of high quality financial reporting standards.
The mission of the AASB is to develop and maintain high quality financial reporting standards for all sectors of the Australian economy and contribute, through leadership and talent, to the development of global financial reporting standards and be recognised as facilitating the inclusion of the Australian community in the activity of global standard setting.
Key priorities during 2013‑14 include:
- issue Australian consultative documents incorporating International Accounting Standards Board (IASB) exposure drafts and discussion papers to encourage Australian constituents to be involved in the process and provide the AASB with information for making its own comments to the IASB;
- ensure that changes to International Financial Reporting Standards (IFRS) are processed expeditiously and are communicated to Australian constituents;
- work closely with the New Zealand Financial Reporting Standards Board to converge reporting requirements across the Tasman, consistent with the Outcome Proposals agreed in August 2009 (as amended in 2011) by the Australian and New Zealand Prime Ministers;
- continue to implement the new differential reporting framework, (Reduced Disclosure Requirements);
- actively pursue an agenda relevant to the public sector and the not‑for‑profit private sector, whilst maintaining a transaction neutral approach;
- participate in ongoing projects of the International Public Sector Accounting Standards Board (IPSASB) with a view to promoting and improving the IPSASB's output;
- issue a revised Standard on financial reporting by superannuation plans; and
- work closely both in the Asia Oceania and global arenas to promote Australian thought leadership and influence.
1.2 Agency resource statement
Table 1.1 shows the total resources for AASB.
Estimate of prior year amounts available in 2013‑14 $'000 |
+ | Proposed at Budget 2013‑14 $'000 |
= | Total estimate 2013‑14 $'000 |
Actual available appropriation 2012‑13 $'000 |
||
---|---|---|---|---|---|---|---|
Ordinary annual services | |||||||
Departmental | |||||||
Prior year departmental appropriation | 1,485 | 4 | - | 1,485 | - | ||
Departmental appropriation3 | - | 3,815 | 1 | 3,815 | 3,810 | ||
Receipts from other sources (s31) | - | 788 | 2 | 788 | 808 | ||
Total ordinary annual services | A | 1,485 | 4,603 | 6,088 | 4,618 | ||
Departmental non-operating | |||||||
Equity injections | 3,188 | 4 | - | 3,188 | - | ||
Total other services | B | 3,188 | - | 3,188 | - | ||
Total net resourcing for AASB (A+B) | 4,673 | 4,603 | 9,276 | 4,618 |
1. Appropriation Bill (No. 1) 2013‑14.
2. Receipts under section 31 (s31) of the Financial Management and Accountability Act 1997.
3. Includes $0.08 million in 2013‑14 for the departmental capital budget (also refer to Table 3.2.5).
4. Estimated adjusted balance carried from previous year for annual appropriations.
1.3 Budget measures
Budget measures relating to the AASB are summarised below.
Program | 2012‑13 $'000 |
2013‑14 $'000 |
2014‑15 $'000 |
2015‑16 $'000 |
2016‑17 $'000 |
|
---|---|---|---|---|---|---|
Expense measures | ||||||
Targeted savings — public service efficiencies 1 | 1.1 | (17) | ( 26) | (23) | (22) | (20) |
Total expense measures | (17) | (26) | (23) | (22) | (20) |
1. This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13.
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The AASB's outcome is described below, specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of the AASB.
Outcome 1: The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions
Outcome 1 strategy
The key strategies to achieve Outcome 1 are:
- to make accounting standards under section 334 of the Corporations Act 2001 for the purposes of the financial reporting requirements of the Corporations legislation;
- to formulate accounting standards for the purposes of financial reporting by Australian entities that are not subject to the reporting requirements of the Corporations legislation; and
- to participate in, and contribute to, the development of a single set of accounting standards for world‑wide use.
The AASB will continue its role in the development of legally enforceable accounting standards, the development of accounting standards for non Corporation's legislation entities and the development of global accounting standards.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1.
Outcome 1: The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions | 2012‑13 Estimated actual expenses $'000 |
2013 ‑14 Estimated expenses $'000 |
---|---|---|
Program 1.1: Australian Accounting Standards Board | ||
Departmental expenses | ||
Departmental appropriation | 4,537 | 4,521 |
Expenses not requiring appropriation in the budget year | 191 | 239 |
Total expenses for Outcome 1 | 4,728 | 4,760 |
2012‑13 | 2013‑14 | |
Average staffing level (number) | 22 | 24 |
Contributions to Outcome 1
Program 1.1: Australian Accounting Standards Board
Program objective
The objectives of the AASB are to:
- ensure Australian for‑profit entities complying with Australian Accounting Standards would also be complying with the IFRS;
- to the extent feasible, ensure transactions are accounted for in the same way by all entities — that is, to the extent feasible, ensure Australian Accounting Standards are transaction neutral, which requires consideration by the AASB of how each IFRS might affect not‑for‑profit entities in the public and private sectors;
- maintain and enhance Australia's reputation as a leading national accounting standard setter in the interests of making an important contribution to setting high‑quality global standards. This also involves establishing and maintaining working relationships with other national standard setters (particularly in the Asia‑Oceania region), the IASB and the IPSASB;
- drive improvements in financial reporting, particularly on issues not being dealt with internationally, including those relating to not‑for‑profit entities in the public and private sectors when a purely transaction neutral approach does not prove feasible;
- have consistent interpretations of requirements and encourage other jurisdictions to do the same through relationships with other standard setters;
- have an up‑to‑date and easy‑to‑use website and report on AASB decisions and projects on a timely basis; and
- develop staff with expertise in standard setting through ongoing education and graduate and secondment programs.
Program expenses
There are no significant changes to estimates across the forward years.
2012‑13 Revised budget $'000 |
2013‑14 Budget $'000 |
2014‑15 Forward year 1 $'000 |
2015‑16 Forward year 2 $'000 |
2016‑17 Forward year 3 $'000 |
|
---|---|---|---|---|---|
Annual departmental expenses | |||||
Departmental items | 4,728 | 4,760 | 4,794 | 4,827 | 4,780 |
Total departmental expenses | 4,728 | 4,760 | 4,794 | 4,827 | 4,780 |
Program deliverables
The AASB has the following deliverables:
- promulgate each IFRS and IFRS amendment developed by the IASB into Australian Law;
- promulgate each standard to apply on a transaction neutral basis to the extent feasible and develop specific standards to deal with not‑for‑profit entity issues where necessary;
- prepare and publish accounting standards, compiled versions of standards and exposure drafts;
- participate in international standard setting and other research projects;
- maintain close relationships with equivalent organisations in other jurisdictions; and
- develop personnel with experience in standard setting.
Program key performance indicators
The AASB has the following key performance indicators:
- accounting standard and standard amendments to be developed by the IASB are in accordance with Australian legislative drafting protocols and Federal Register of Legislative Instruments requirements;
- regular consultation and liaison with a broad range of Australian constituents;
- accounting standards or compilations are lodged on the Federal Register of Legislative Instruments and are published on the AASB website within three days of finalisation;
- responses are made to all significant IASB and IPSASB exposure drafts;
- host and/or attendance at meetings of the IASB's Accounting Standards Advisory Forum, the International Forum of Accounting Standard‑Setters and the Asian‑Oceanian Standard‑Setters Group and participate in the work of the Trans‑Tasman Accounting and Auditing Standards Advisory Group; and
- develop opportunities for accounting professionals, including recent graduates and secondments.
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of the agency finances for the budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, program expenses and special accounts.
3.1 Explanatory tables
3.1.1 Movement of administered funds between years
The AASB does not have any administered funds.
3.1.2 Special accounts
The AASB does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
The AASB does not have any Australian Government Indigenous Expenditure.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
There are no material differences between agency resourcing and financial statements.
3.2.2 Analysis of budgeted financial statements
The budgeted financial statements have been prepared on an Australian Accounting Standards basis.
The AASB is budgeting for a break‑even operating result for 2013‑14 after adding back non‑appropriated depreciation and amortisation expenses.
3.2.3 Budgeted financial statements tables
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
EXPENSES | |||||
Employee benefits | 3,398 | 3,697 | 3,742 | 3,818 | 3,930 |
Supplier | 1,169 | 854 | 841 | 805 | 740 |
Depreciation and amortisation | 157 | 205 | 207 | 199 | 105 |
Finance costs | 4 | 4 | 4 | 5 | 5 |
Total expenses | 4,728 | 4,760 | 4,794 | 4,827 | 4,780 |
LESS: | |||||
OWN-SOURCE INCOME | |||||
Revenue | |||||
Sale of goods and rendering of services | 308 | 288 | 295 | 302 | 309 |
Other revenue | 500 | 500 | 500 | 500 | 500 |
Total revenue | 808 | 788 | 795 | 802 | 809 |
Gains | |||||
Other gains | 34 | 34 | 34 | 34 | 34 |
Total gains | 34 | 34 | 34 | 34 | 34 |
Total own-source income | 842 | 822 | 829 | 836 | 843 |
Net cost of (contribution by) services | 3,886 | 3,938 | 3,965 | 3,991 | 3,937 |
Appropriation revenue | 3,729 | 3,733 | 3,758 | 3,792 | 3,832 |
Surplus (deficit) attributable to the Australian Government | (157) | (205) | (207) | (199) | (105) |
Note: Impact of Net Cash Appropriation Arrangements | |||||
2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
20116-17 $'000 |
|
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations | - | - | - | - | - |
plus depreciation/amortisation expenses previously funded through revenue appropriations | (157) | (205) | (207) | (199) | (105) |
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income | (157) | (205) | (207) | (199) | (105) |
Prepared on Australian Accounting Standards basis.
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
ASSETS | |||||
Financial assets | |||||
Cash and equivalents | 402 | 402 | 402 | 402 | 402 |
Trade and other receivables | 4,213 | 4,066 | 3,941 | 3,886 | 3,903 |
Total financial assets | 4,615 | 4,468 | 4,343 | 4,288 | 4,305 |
Non-financial assets | |||||
Infrastructure, plant and equipment | 421 | 334 | 196 | 74 | 99 |
Inventories | 13 | 34 | 39 | 34 | 12 |
Intangibles | 3 | 3 | 3 | 3 | 3 |
Other | 23 | 23 | 23 | 23 | 23 |
Total non-financial assets | 460 | 394 | 261 | 134 | 137 |
Total assets | 5,075 | 4,862 | 4,604 | 4,422 | 4,442 |
LIABILITIES | |||||
Provisions | |||||
Employees | 1,380 | 1,403 | 1,380 | 1,438 | 1,498 |
Other | 141 | 145 | 149 | 154 | 158 |
Total provisions | 1,521 | 1,548 | 1,529 | 1,592 | 1,656 |
Payables | |||||
Suppliers | 81 | 63 | 63 | 62 | 51 |
Other | 428 | 329 | 216 | 89 | 77 |
Total payables | 509 | 392 | 279 | 151 | 128 |
Total liabilities | 2,030 | 1,940 | 1,808 | 1,743 | 1,784 |
Net assets | 3,045 | 2,922 | 2,796 | 2,679 | 2,658 |
EQUITY | |||||
Contributed equity | 281 | 363 | 444 | 526 | 610 |
Asset Revaluation Reserve | 33 | 33 | 33 | 33 | 33 |
Retained surpluses or accumulated deficits | 2,731 | 2,526 | 2,319 | 2,120 | 2,015 |
Total equity | 3,045 | 2,922 | 2,796 | 2,679 | 2,658 |
Current assets | 4,641 | 4,494 | 4,369 | 4,314 | 4,331 |
Non-current assets | 434 | 368 | 235 | 108 | 111 |
Current liabilities | 886 | 892 | 869 | 927 | 974 |
Non-current liabilities | 1,144 | 1,048 | 939 | 816 | 810 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
OPERATING ACTIVITIES | |||||
Cash received | |||||
Goods and services | 308 | 288 | 295 | 302 | 309 |
Appropriations | 3,783 | 3,790 | 3,752 | 3,781 | 3,857 |
Other | 731 | 573 | 632 | 565 | 500 |
Total cash received | 4,822 | 4,651 | 4,679 | 4,648 | 4,666 |
Cash used | |||||
Employees | 3,431 | 3,675 | 3,766 | 3,760 | 3,870 |
Suppliers | 1,223 | 919 | 919 | 899 | 718 |
Other | - | - | - | - | 53 |
Total cash used | 4,654 | 4,594 | 4,685 | 4,659 | 4,641 |
Net cash from (used by) operating activities | 168 | 57 | (6) | (11) | 25 |
INVESTING ACTIVITIES | |||||
Cash used | |||||
Purchase of property, plant and equipment | 135 | 139 | 75 | 71 | 109 |
Total cash used | 135 | 139 | 75 | 71 | 109 |
Net cash from (used by) investing activities | (135) | (139) | (75) | (71) | (109) |
FINANCING ACTIVITIES | |||||
Cash received | |||||
Contributed equity | 81 | 82 | 81 | 82 | 84 |
Total cash received | 81 | 82 | 81 | 82 | 84 |
Net cash from (used by) financing activities | 81 | 82 | 81 | 82 | 84 |
Net increase (decrease) in cash held | 114 | - | - | - | - |
Cash and cash equivalents at the beginning of the reporting period | 286 | 400 | 400 | 400 | 400 |
Cash and cash equivalents at the end of the reporting period | 400 | 400 | 400 | 400 | 400 |
Prepared on Australian Accounting Standards basis.
Retained surpluses $'000 |
Asset revaluation reserve $'000 |
Other reserves $'000 |
Contributed equity/ capital $'000 |
Total equity $'000 |
|
---|---|---|---|---|---|
Opening balance as at 1 July 2013 | |||||
Balance carried forward from | |||||
previous period | 2,731 | 33 | - | 281 | 3,045 |
Adjusted opening balance | 2,731 | 33 | - | 281 | 3,045 |
Comprehensive income | |||||
Surplus (deficit) for the period | (205) | - | - | - | (205) |
Total comprehensive income recognised directly in equity | (205) | - | - | - | (205) |
Transactions with owners | |||||
Contributions by owners | |||||
Appropriation (departmental capital budget) | - | - | - | 82 | 82 |
Total transactions with owners | - | - | - | 82 | 82 |
Estimated closing balance as at 30 June 2014 | 2,526 | 33 | - | 363 | 2,922 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
NEW CAPITAL APPROPRIATIONS | |||||
Capital budget - Bill 1 - DCB | 81 | 82 | 81 | 82 | 84 |
Total new capital appropriations | 81 | 82 | 81 | 82 | 84 |
Provided for: | |||||
Purchase of non-financial assets | 81 | 82 | 81 | 82 | 84 |
Total Items | 81 | 82 | 81 | 82 | 84 |
PURCHASE OF NON-FINANCIAL ASSETS | |||||
Funded by capital appropriation - DCB | 135 | 139 | 75 | 71 | 109 |
TOTAL | 135 | 139 | 75 | 71 | 109 |
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
Total purchases | 135 | 139 | 75 | 71 | 109 |
Total cash used to acquire assets | 135 | 139 | 75 | 71 | 109 |
Prepared on Australian Accounting Standards basis.
Buildings $'000 |
Other infrastructure, plant and equipment $'000 |
Intangibles $'000 |
L&B, IP&E held for sale $'000 |
Total $'000 |
|
---|---|---|---|---|---|
As at 1 July 2013 | |||||
Gross book value | - | 1,204 | 99 | - | 1,303 |
Accumulated depreciation/amortisation and impairment | - | 783 | 86 | - | 869 |
Opening net book balance | - | 421 | 13 | - | 434 |
Capital asset additions | |||||
By purchase - appropriation ordinary annual services | - | 94 | 45 | - | 139 |
Total asset additions | - | 94 | 45 | - | 139 |
Other movements | |||||
Depreciation/amortisation expense | - | 181 | 24 | - | 205 |
Total other movements | - | 181 | 24 | - | 205 |
As at 30 June 2014 | |||||
Gross book value | - | 1,298 | 144 | - | 1,442 |
Accumulated depreciation/amortisation and impairment | - | 964 | 110 | - | 1,074 |
Closing net book balance | - | 334 | 34 | - | 368 |
Prepared on Australian Accounting Standards basis.