Australian Government
Department of Finance and Deregulation
SUMMARY OF SIGNIFICANT CHANGES
TO THE FINANCE MINISTER’S ORDERS FOR FINANCIAL REPORTING
(INCORPORATING POLICY AND GUIDANCE) AND PRIMA FORMS OF FINANCIAL
STATEMENTS APPLYING TO 2012-13
The purpose of this document is to provide entities with an overview of the significant changes
to the Finance Minister’s Orders for Financial Reporting (FMOs) and PRIMA Forms of
Financial Statements. Additionally, it offers guidance to assist entities in identifying which of
these changes may constitute a change in accounting policy, as required by AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors, and thus might require
disclosure (whilst considering materiality and the entity’s own circumstances).
Reference
Change in
accounting
policy1
Changes
Finance Minister’s Orders
General

Rather than create new orders, the 2012-13, changes were
implemented by amending the Finance Minister’s Orders (Financial
Statements for reporting periods ending on or after 1 July 2011)
through the Finance Minister’s Amendment Orders (Financial
Statements for reporting periods ending on or after 1 July 2012).

No impact.
This means that the FMOs package (incorporating Orders, Policy
and Guidance) published by Finance retains the reference Finance
Minister’s Orders (Financial Statements for reporting periods ending
on or after 1 July 2011). The amendments have been incorporated
into the package.
4 Definitions

Added definition of Standard Parameters.

No impact.
1
Disclaimer: These changes have been assessed by Finance as likely to constitute a change in accounting policy in
accordance with the principles of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors to
assist entities in preparing and presenting their financial statements. However, entities will need to consider whether
the changes actually constitute a change in accounting policy for their own individual circumstances then work
through the potential reporting implications whilst considering materiality. Hence, not all of the likely changes in
accounting policy might apply to an entity or require disclosure.
■ Added or new section ■ Amended, clarified or moved ■ Removed
Page 1
8 Authoritative
Requirements

Added specific reference to Standard Parameters in section
8.2(b)(iv), being the list of documents an entity must “have regard
to” in preparation of their financial statements.

No impact.
17 Approved
Exemptions

Amended Department of Defence exemption (section 17.14) to
replace specific executive remuneration thresholds with a cross
reference to the Standard Parameters document. This is consistent
with the approach taken in Division 23 Director/Senior Executive
Remuneration.

No impact.
23 Director/
Senior
Executive
Remuneration

General edits:

Replaced specific descriptions of requirements for Tables A, B and
C, as well as director disclosures, with explicit references to Part K
of the FMOs.

Replaced specific references to the executive remuneration
thresholds for Tables A, B and C, now located in Standard
Parameters, with cross references to this document.

Amended definitions of Reportable Allowances, Reportable
Remuneration and Reportable Salary and the subheading for
Table C to ensure consistent use of terminology.

Amended the definition of Executive Remuneration to reference
AASB 119 Employee Benefits rather than AGN 2007/2 (Revised)
Identification of Executive Remuneration.




No impact.

Amended the definition of Contributed Superannuation regarding
the requirements for defined benefit schemes and defined
contribution schemes and to remove the need to separate salary
sacrificed superannuation from total amounts salary sacrificed, with
consequential amendments to the definitions of Reportable
Remuneration and Reportable Salary.

Impact: Entities are required to prepare Tables B and C on this
basis. This has no impact on Total Reportable Remuneration for
individuals disclosed (and hence the band within which they are
captured), it is simply a change to how this figure is disaggregated.
PRIMA Forms of Financial Statements
Statement of
Comprehensive
Income

Added subheadings to other comprehensive income as required by
AASB 101 Presentation of Financial Statements.
Impact: Entities are now required to split the presentation of other
comprehensive income into two categories, being those items
subject to, or not subject to, subsequent reclassification to net cost of
services.
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
Note 17 Senior
Executive
Remuneration

The executive remuneration threshold is to be increased from
$150,000 to $180,000. This change will be formalised by the
amount shown in the Standard Parameters document (to be
published early July).
Impact: Entities will be required to prepare Tables A, B and C of
the Senior Executive Remuneration note on this basis (noting it is
only a minimum disclosure threshold for the purposes of Table C).
■ Added or new section ■ Amended, clarified or moved ■ Removed
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