Notes to the financial statements
Note 40: Assets held in trust
Assets held in trust are moneys that are not held on account of the Australian
Government or for the use or benefit of the Australian Government. These funds are
held by the Australian Government in a trustee capacity and are generally subject to
trust law.
Assets held in trust are not recognised in the primary statements. Details pertaining to
assets held in trust can be found in the audited financial reports of individual
Australian Government controlled entities.
Assets held in trust that do not stand to the credit of a Special Account are held by the
following Australian Government controlled entities (primarily entities subject to the
CAC Act).
Commonwealth controlled entity
Australian Government Solicitor
Australian Securities and
Investments Commission
Australian Securities and
Investments Commission
Comcare
Commonwealth Scientific and
Industrial Research Organisation
Commonwealth Scientific and
Industrial Research Organisation
Indigenous Business Australia
Various entities
Description of special public
money account
Solicitor trust accounts
Monies held under reg. 7.6.02AA
of the Corporations Regulations
Monies held under section 1284(1) of
the Corporations Act
Comcare Beneficiaries Trust
Account (BTA)
Elwood and Hannah Zimmerman
Trust Fund
Schlinger Trust
Aboriginal and Torres Strait
Islander Commission Funds
Other trust moneys held for various
purposes
Total assets held in trust
172
Balance
2012
$m
5
2011
$m
16
12
17
2
2
1
1
5
5
2
2
4
3
3
34
2
48
Note 41: 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 2010. The amounts may
differ to the aggregates observed during the compilation process and reported by the ABS in the 2011–12 Government Finance
Statistics publication, which will not be published until 2013.
173
Public non-financial
corporations
2012
2011
$m
$m
Public financial
corporations
2012
2011
$m
$m
Eliminations and
netting
2012
2011
$m
$m
2011
$m
(39,151)
(46,624)
(72)
(450)
635
(108)
(461)
1,059
(118)
(4,390)
Australian
Government
2012
$m
2011
$m
453
1,060
1,229
(1,267)
(764)
(39,430)
(45,706)
-
-
-
-
-
-
(450)
635
(108)
(461)
1,059
(118)
(5,495)
-
-
-
-
-
-
(4,390)
(5,495)
2,768
2,908
-
-
-
-
-
-
2,768
2,908
(1,545)
(40,696)
(2,107)
(48,731)
(205)
(241)
(446)
(518)
(1)
(137)
(138)
315
5
(1,021)
(1,016)
44
10
(464)
(454)
775
200
1,262
1,462
195
(9)
601
592
(172)
(1,545)
(40,975)
(2,107)
(47,813)
(a) Determined in accordance with the ABS GFS manual as at 1 July 2010.
(b) Financial statements treat the profit between the cost and sale of circulating coin (seigniorage) as revenue whereas ABS GFS manual treats circulating coin as a
liability and the cost to produce the coins as an expense.
(c) Financial statements treat acquisitions of defence weapons platforms as capital expenditure recognised as an asset on the balance sheet. Depreciation expense on
assets is recorded in the operating statement. The ABS GFS manual as at 1 July 2010 treats acquisitions of defence weapons platforms and explosive ordnance as
an expense at the time of acquisition and so do not appear as an asset on the balance sheet and no depreciation or consumption is recorded in the operating
statement.
Notes to the financial statements
Note 41(a): Reconciliation to GFS net
operating balance(a)
Net result from transactions - net
operating balance reported in Statement
of Comprehensive Income
Convergence differences:
Unwinding of concessional interest costs
Concessional interest costs
Seigniorage(b)
Defence weapons and inventory
- net acquisition(c)
Defence weapons and inventory - depreciation
and consumption
Movement in deferred tax assets and deferred
tax liabilities
Dividends to GGS from other sector
Total convergence differences
GFS Net operating balance
General
government
2012
$m
Note 41(b): Reconciliation to GFS total
change in net worth(a)
Total change in net worth before transactions
with owners in their capacity as owners
as reported in Statement of Comprehensive
Income
Convergence differences:
Relating to net operating balance
Relating to other economic flows
Relating to transactions with owners
Total convergence differences
GFS Total change in net worth
General
government
2012
$m
Public non-financial
corporations
2012
2011
$m
$m
2011
$m
(152,344)
(48,772)
(1,025)
(1,545)
6,564
5,019
(147,325)
(2,107)
(887)
(2,994)
(51,766)
(446)
(167)
1,638
1,025
-
Public financial
corporations
2012
2011
$m
$m
Eliminations and
netting
2012
2011
$m
$m
Australian
Government
2012
$m
2011
$m
539
1,861
(4,633)
(1,841)
4,021
(153,349)
(48,845)
(138)
(1,872)
1,471
(539)
-
(1,016)
176
(1,021)
(1,861)
-
(454)
5,551
(464)
4,633
-
1,462
996
(617)
1,841
592
(3,606)
(1,007)
(4,021)
(1,545)
7,569
6,024
(147,325)
(2,107)
(814)
(2,921)
(51,766)
-
-
(a) Determined in accordance with the ABS GFS manual as at 1 July 2010.
174
Note 41(c): Reconciliation GFS net
lending/(borrowing)(a)
Net lending/(borrowing) as reported in
Statement of Comprehensive Income
Convergence differences:
Relating to net operating balance
Defence weapons and inventory
- net acquisition(b)
Defence weapons and inventory - depreciation
and consumption(c)
Total convergence differences
GFS Net lending/(borrowing)
General
government
2012
$m
Public non-financial
corporations
2012
2011
$m
$m
Public financial
corporations
2012
2011
$m
$m
Eliminations and
netting
2012
2011
$m
$m
2011
$m
(44,004)
Australian
Government
2012
$m
2011
$m
(51,922)
(1,997)
(767)
1,060
1,230
(1,267)
(907)
(46,208)
(52,366)
(1,545)
(2,107)
(446)
(138)
(1,016)
(454)
1,462
592
(1,545)
(2,107)
4,390
5,495
-
-
-
-
-
-
4,390
5,495
(2,768)
77
(43,928)
(2,908)
480
(51,442)
(446)
(2,443)
(138)
(905)
(1,016)
44
(454)
776
1,462
195
592
(315)
(2,768)
77
(46,131)
(2,908)
480
(51,886)
(a) Determined in accordance with the ABS GFS manual as at 1 July 2010.
(b) Financial statements treat acquisitions of defence weapons platforms and explosive ordnance as capital expenditure recognised as assets on the balance sheet. The ABS
GFS manual as at 1 July 2010 treats acquisitions of defence weapons platforms and explosive ordnance as an expense at the time of acquisition and so do not appear as an
asset on the balance sheet.
(c) Financial statements treat depreciation of defence weapons platforms and consumption of explosive ordnance as an expense in the operating statement. The ABS GFS
manual as at 1 July 2010 does not record depreciation or consumption as defence weapons platforms and explosive ordnance are expensed at the time of acquisition.
Notes to the financial statements
Note 41: Reconciliations to ABS GFS measures (continued)
Note 41: Reconciliations to ABS GFS measures (continued)
175
Note 41(d): Reconciliation to
GFS net worth(a)
Net worth as reported in Balance Sheet
Convergence differences:
Provision for doubtful debts(b)
Concessionality on loans and investments(c)
Investment in other sector entities(d)
Deferred tax assets(b)
Defence weapons platforms and inventory(e)
Dividend payable
Special drawing rights (SDR)(f)
Seigniorage(g)
Deferred tax liability(b)
Shares and other contributed capital
Minority interests
Total convergence differences
GFS Net worth
General
government
2012
$m
Public non-financial
corporations
2012
2011
$m
$m
Public financial
corporations
2012
2011
$m
$m
2011(h)
$m
(252,158)
22,369
7,035
(5,046)
(42,383)
(1)
4,570
3,509
(9,947)
(262,105)
Eliminations and
netting
2012
2011
$m
$m
(100,038)
8,544
7,931
8,791
7,952
(21,436)
19,924
8,695
(4,027)
(40,509)
4,585
(3,406)
(14,738)
(114,776)
12
(814)
337
(8,079)
(8,544)
-
7
(776)
14
504
(7,680)
(7,931)
-
9
(53)
31
(8,778)
(8,791)
-
11
(46)
19
(7,936)
(7,952)
-
5,046
867
(368)
15,891
21,436
-
Australian
Government
2012
$m
2011(h)
$m
(18,982)
(256,259)
(103,137)
4,027
822
(14)
(523)
14,670
18,982
-
22,390
7,035
(42,383)
(1)
4,570
3,509
(966)
(5,846)
(262,105)
19,942
8,695
(40,509)
4,585
(3,406)
(946)
(11,639)
(114,776)
Notes to the financial statements
(a) Determined in accordance with the ABS GFS manual as at 1 July 2010.
(b) Financial statements treat provisions for doubtful debts as part of other economic flows and included 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 operating statement and balance sheet. The write–
off from a provision is included as either a transaction or other economic flow in the ABS GFS manual.
(c) 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.
(d) The convergence difference arises because the amount of net assets (and therefore the change in carrying amount of net assets) of other sector entities determined
under GFS principles and rules differs from the carrying amount of net assets. At the general government level, the difference is also due to the valuation of some
investments in other sector entities at fair value rather than net assets.
(e) Financial statements treat acquisitions of defence weapons platforms and explosive ordnance as capital expenditure recognised as assets on the balance sheet.
Depreciation expense on defence weapons platforms and consumption of explosive ordnance is recorded in the operating statement. The ABS GFS manual as at 1
July 2010 treats acquisitions of defence weapons platforms and explosive ordnance as an expense at the time of acquisition and so do not appear as an asset on
the balance sheet and no depreciation or consumption is recorded in the operating statement.
(f) Financial statements treat SDR currency issued by the IMF as a liability whereas the ABS GFS manual as at 1 July 2010 treats as a contingent liability.
(g) 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.
(h) The amounts differ to the aggregates reported by the ABS in the GFS publication because of changes in methodology and/or updated information availability
subsequent to the release of the Consolidated Financial Statements.
Notes to the financial statements
Note 41: Reconciliations to ABS GFS measures (continued)
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 42: Audit expenses
With the exception of a small number of entities, audit services within the reporting
entity are provided by the Auditor–General. The cost of these services which include
performance and financial statement audits, totalled $74.4million (2011: $68.1 million).
This amount includes $0.7 million for the audit of the Consolidated Financial
Statements (2011: $0.7 million).
Of this, $43.8 million (2011: $38.5 million) relates to financial statement audit report
expense and $30.6 million (2011: $29.6 million) to all other Australian National Audit
Office output expenses.
176