Note 14A: Reconciliations to ABS GFS measures
The following tables provide a reconciliation of key fiscal aggregates on the face of the financial statements where the amounts
reported differ from the corresponding key fiscal aggregates measured under the ABS GFS manual as at 1 July 2013(a).
(a)
Reconciliation to GFS net operating balance
General
Public non- financ ial
Government
c orporations
2015
2014
2015
2014
$m
$m
$m
$m
Public financ ial
c orporations
2015
2014
$m
$m
Eliminations and
netting
2015
2014
$m
$m
Australian
Government
2015
2014
$m
$m
165
Notes to the financial statements
Ne t re sult from tra nsa c tions - ne t
ope ra ting ba la nc e re porte d in
S ta te me nt of Compre he nsive Inc ome
(37,415)
(40,587)
(1,788)
(1,398)
957
9,456
(2,575) (1,730)
(40,821)
(34,259)
Conve rge nc e diffe re nc e s:
Unwinding of c onc essional interest c osts(b)
(47)
(146)
(47)
(146)
Conc essional interest c osts(b)
860
1,061
860
1,061
Seigniorage(c )
(111)
(112)
(111)
(112)
Defenc e weapons platforms and inventory(d)
Under ABS GFS Manual applic able to 2013- 14
(1,712)
(1,712)
Under ABS GFS Manual applic able to 2014- 15
162
162
Movement in deferred tax assets and deferred
tax liabilities
111
8
8
1
(119)
(9)
Issue and surrender of free c arbon permits(e)
Capital grant to the RBA(e)
8,800
- (8,800)
Dividends to GGS from other sec tors(f)
(110)
(222)
(2,198)
(1,319)
2,308
1,541
Tota l c onve rge nc e diffe re nc e s
864
7,891
1
(214)
(2,190) (10,118)
2,189
1,532
864
(909)
G FS Ne t ope ra ting ba la nc e
(3 6 , 5 5 1) (3 2 , 6 9 6 )
(1, 7 8 7 ) (1, 6 12 ) (1, 2 3 3 )
(6 6 2 )
(3 8 6 )
(19 8 )
(3 9 , 9 5 7 )
(3 5 , 16 8 )
(a) Under AASB 1049, the financial statements are reconciled to the ABS GFS manual effective at the beginning of the comparative reporting period (1 July 2013).The amounts
reported may differ to the aggregates subsequently reported by the ABS in the 2014-15 GFS publication because of changes in methodology, differences in interpretation
and/or updated information availability subsequent to the release of the financial statements.
(b) The financial statements discount concessional loans by a market rate of a similar instrument whereas the ABS GFS manual does not discount as no secondary market is
considered to exist.
(c) The financial statements treat the profit between the cost and sale of circulating coin (seigniorage) as revenue whereas the ABS GFS manual treats circulating coin as a
liability and the cost to produce the coins as an expense.
(d) For 2014-15, this impact reflects the difference between depreciation reported in the financial statements and the consumption of fixed capital reported for statistical purposes.
(e) The 2013-14 financial statements treated a capital payment to the RBA as a capital grant expense for the GGS and revenue for the PFC sector. The ABS GFS manual treats
this as an equity injection which would not appear on the operating statement.
(f) The financial statements treat dividends to the GGS as a distribution to owners whereas the ABS GFS manual treats dividends to owners as an expense.
Reconciliation to GFS total change in net worth
General
Public non- financ ial
Government
c orporations
2015
2014
2015
2014
$m
$m
$m
$m
Tota l c ha nge in ne t worth be fore
tra nsa c tions with owne rs in the ir
c a pa c ity a s owne rs a s re porte d in
S ta te me nt of Compre he nsive Inc ome
Conve rge nc e diffe re nc e s:
Relating to net operating balanc e
Relating to c hange in treatment of
defenc e weapons and inventory (a)
Relating to other ec onomic flows
Relating to transac tions with owners
Tota l c onve rge nc e diffe re nc e s
G FS Tota l c ha nge in ne t worth
Public financ ial
c orporations
2015
2014
$m
$m
Eliminations and
netting
2015
2014
$m
$m
Australian
Government
2015
2014
$m
$m
(47,253)
(54,423)
(2,154)
(1,105)
6,153
10,116
(1,296)
(9,165)
(44,550)
(54,577)
864
7,891
1
(214)
(2,190)
(10,118)
2,189
1,532
864
(909)
43,760
7,016
51,640
4,387
(5,213)
2,678
(5 1, 7 4 5 )
(2,554)
4,707
2,154
-
(1,692)
3,011
1,105
-
(1,965)
(1,998)
(6,153)
-
1,321
(1,319)
(10,116)
-
1,806
(2,709)
1,286
(10 )
9,333
(1,692)
9,173
8
43,760
4,303
48,927
4,377
3,749
2,840
(5 1, 7 3 7 )
166
(a) Consistent with AASB 1049, the Australian Government elected not to apply Chapter 2 Amendments to Defence Weapons Platforms of the ABS publication Amendments to
Australian System of Government Finance Statistics, 2005 (ABS Catalogue No. 5514.0) — published on the ABS website on 5 April 2011 — until the 2014-15 reporting period.
The 2013-14 comparatives are prepared on the previous basis.
Notes to the financial statements
(b)
(c)
Reconciliation to GFS net lending / (borrowing)
General
Public non- financ ial
Government
c orporations
2015
2014
2015
2014
$m
$m
$m
$m
Public financ ial
c orporations
2015
2014
$m
$m
Eliminations and
netting
2015
2014
$m
$m
Australian
Government
2015
2014
$m
$m
167
Ne t le nding/ (borrowing) a s re porte d in
S ta te me nt of Compre he nsive Inc ome
(40,121)
(44,437)
(4,717)
(5,818)
974
8,739
(2,594) (1,778)
(46,458)
(43,294)
Conve rge nc e diffe re nc e s:
Relating to net operating balanc e
864
7,891
1
(214)
(2,190) (10,118)
2,189
1,532
864
(909)
Defenc e weapons and inventory
- net ac quisition(a)
4,461
4,461
Defenc e weapons and inventory - deprec iation
and c onsumption(a)
(2,749)
(2,749)
Auc tion sales of spec trum(b)
(1,965)
(1,965)
Tota l c onve rge nc e diffe re nc e s
(1,101)
9,603
1
(214)
(2,190) (10,118)
2,189
1,532
(1,101)
803
G FS Ne t le nding/ (borrowing)
(4 1, 2 2 2 ) (3 4 , 8 3 4 )
(4 , 7 16 ) (6 , 0 3 2 )
(1, 2 16 ) (1, 3 7 9 )
(4 0 5 ) (2 4 6 )
(4 7 , 5 5 9 )
(4 2 , 4 9 1)
(a) The 2013-14 comparatives show acquisitions of defence weapons platforms and inventory as an expense.
(b) The financial statements recognise the disposal of spectrum licences at the point of issue whereas the ABS GFS manual recognises spectrum licences at the time of auction
and the proceeds from their sale at the point of auction, reflected on the balance sheet as a receivable.
Notes to the financial statements
Reconciliation to GFS net worth
General
Public non- financ ial
Government
c orporations
2015
2014
2015
2014
$m
$m
$m
$m
168
Ne t worth a s re porte d in Ba la nc e S he e t
(308,454)
(261,513)
Conve rge nc e diffe re nc e s:
Provision for doubtful debts(a)
25,076
25,761
Conc essionality on loans and investments(b)
9,435
8,688
Investment in other sec tor entities(c )
(707)
(3,445)
Deferred tax assets(d)
Defenc e weapons platforms and inventory(e)
Under ABS GFS Manual applic able to 2013- 14
(43,760)
Under ABS GFS Manual applic able to 2014- 15
6,844
Dividend payable
Spec ial drawing rights (SDR)
Seigniorage(f)
(3,861)
(3,750)
Deferred tax liability(d)
Auc tion sales of spec trum(g)
1,965
Shares and other c ontributed c apital(h)
Minority interests
Tota l c onve rge nc e diffe re nc e s
36,786
(14,542)
G FS Ne t worth
(2 7 1, 6 6 8 ) (2 7 6 , 0 5 5 )
Public financ ial
c orporations
2015
2014
$m
$m
Eliminations and
netting
2015
2014
$m
$m
(40,159) (36,166)
14,846
12,293
24,802
20,651
15
(909)
13
(909)
1
(4)
8
(12)
707
913
3,445
921
648
(14,600)
(14,846)
-
537
(11,934)
(12,293)
-
(24,799) (20,647)
(24,802) (20,651)
-
(648)
39,187
40,159
-
(537)
32,337
36,166
-
Australian
Government
2015
2014
$m
$m
(308,965)
(264,735)
25,092
9,435
-
25,782
8,688
-
(43,760)
6,844
(3,861)
(3,750)
1,965
(212)
(244)
37,297
(11,320)
(2 7 1, 6 6 8 ) (2 7 6 , 0 5 5 )
(a) The financial statements treat provisions for doubtful debts as an offset to the asset in the balance sheet. The ABS GFS manual does not consider the creation of a provision
to be an economic event and therefore excludes it from the balance sheet.
(b) The financial statements discount concessional loans by a market rate of a similar instrument whereas the ABS GFS manual does not discount as no secondary market is
considered to exist.
(c) The financial statements apply AASB 13 to the valuation of the GGS’s investment in public corporations whereas the ABS GFS manual values public corporations at their net
assets unless the shares in a public corporation are publicly traded. A convergence difference arises where the application of AASB 13 results in a valuation other than net
assets.
(d) Deferred tax assets and deferred tax liabilities are reported in the financial statements whereas the ABS GFS manual does not recognise these items.
(e) Consistent with AASB 1049, the Australian Government elected not to apply Chapter 2 Amendments to Defence Weapons Platforms of the ABS publication Amendments to
Australian System of Government Finance Statistics, 2005 (ABS Catalogue No. 5514.0) — published on the ABS website on 5 April 2011 — until the 2014-15 reporting period.
The ABS GFS Manual recognises defence weapons platforms and inventory as assets at market value. Prior to the 2011 amendment, acquisitions of defence weapons
platforms were treated as an expense at the time of acquisition. The 2014-15 impact reflects the difference between the carrying value reported in the financial statements at
cost (as detailed in Note 1) and the market value calculated by the ABS for statistical purposes. The amount reported may differ to the value subsequently reported by the ABS
in the 2014-15 GFS publication because of revisions made as new information becomes available.
(f) The financial statements treat the profit between the cost and sale of circulating coin (seigniorage) as revenue whereas the ABS GFS manual treats circulating coin as a
liability and the cost to produce the coins as an expense.
(g) The financial statements recognise the disposal of spectrum licences at the point of issue whereas the ABS GFS manual recognises spectrum licences at the time of auction
and the proceeds from their sale at the point of auction, reflected on the balance sheet as a receivable.
(h) The financial statements treat shares and other contributed capital in public corporations as part of net worth whereas the ABS GFS manual deducts shares and other
contributed capital in the calculation of net worth (with net worth calculated as assets less liabilities less shares and other contributed equity).
Notes to the financial statements
(d)
Notes to the financial statements
The ABS GFS manual measures inventory at market value (rather than the lower of
cost and net realisable value). It also does not recognise the provision for
decommissioning/restoration costs. The above reconciliation has not been adjusted for
these items on the basis of materiality and information availability.
Reconciliation to GFS cash surplus/(deficit) is disclosed on the face of the cash flow
statement.
Note 14B: Reconciliation to original budget
The following tables provide a comparison of the original 2014-15 Budget to the final
actual results for the GGS. Explanations are provided for major variances, which are
typically those amounts greater than $1 billion.
The Australian Government does not present budgets at the whole of government
level, and therefore, only the GGS is presented in this note. The Budget is not audited.
169