AASB 1049
Australian Accounting Standard Board 1049 Whole of Government and General Government Sector Financial Reporting is the principal accounting standard applicable to the Commonwealth and State governments in the preparation of their financial reports. From 2008-09 onwards, Australian Accounting Standard Board 1049 has replaced Australian Accounting Standard 31 Financial Reporting by Government.
Accrual recording
A recording method in which revenues, expenses, lending, and borrowing are recorded as they are earned, accrued, or incurred regardless of when payment is made or received.
Chain volume measure
These measures are annually reweighted chain Laspeyres indexes referenced to the current price values in a chosen reference year.
Contribution to growth in GDP
The contributions to growth for a given aggregate 'A' is calculated as:
100 x ( \((PY^A _t – PP^A_t) \over PP^A_t)\) ) x (\(PP^A _t \over PP^{GDP}_t\) )
Where:
- \(PY^A_t \) is the quantity of an aggregate in the current period, in previous period prices
- \(PP^A_t\) is the quantity of an aggregate in the previous period, in previous period prices
- \(PP^{GDP}_t\) is the current price value of GDP in the previous period.
Additivity for contributions to growth exists for the years where the statistical discrepancy is zero, effectively 1995-96 onwards, by using GDP expressed in the prices of the previous year.
For the period 1986-87 to 1994-95, where the statistical discrepancy is not zero, the result is close to additive but not exact because the statistical discrepancy cannot be expressed in prices of the previous year.
Quarterly contribution to growth estimates will not add to GDP growth due to the existence of a statistical discrepancy between the three quarterly measures of GDP.
Consolidation
The process of elimination of all within-sector asset-liability positions, and all transactions between two units of the same sector. Consolidation can be applied to the statistics of any group of units of analytical interest.
Control not further defined (n.f.d.)
The control not further defined (n.f.d.) sector contains units where jurisdiction is shared between two or more governments, or classification of a unit to a jurisdiction is otherwise unclear. The main type of units currently falling into this category is public universities.
Current grant expenses
Voluntary transfers intended to finance the current activities of the recipient. Includes grants for current purposes to foreign governments for aid projects and from one level of government to another (e.g., Commonwealth to State).
Current prices
Estimates are valued at the prices of the period to which the observation relates. For example, estimates for this financial year are valued using this financial year’s prices.
Depreciation
The accounting process of systematically allocating the cost less estimated residual value of an asset over its expected life.
General government sector
Institutional sector comprising all government units and non-profit institutions controlled and mainly financed by government.
GFS net lending/borrowing (NLB)
The financing requirement of government, calculated as the GFS net operating balance less the net acquisition of non-financial assets. A positive result reflects a net lending position, and a negative result reflects a net borrowing position.
GFS net operating balance (NOB)
This is calculated as GFS revenue minus GFS expenses. It is equivalent to the change in net worth arising from transactions and this measure reflects the sustainability of government operations.
GFS net worth
The total stock of assets less liabilities and shares / contributed capital. For the general government sector, net worth is assets less liabilities since shares / contributed capital is zero. This measure reflects the contribution of governments to the wealth of Australia.
Government final consumption expenditure
The SNA concept that refers to government use of goods and services for the satisfaction of individual or collective human needs or wants.
Grants and subsidies received
Cash and other benefits received from voluntary transfers by government and other entities.
Gross Domestic Product (GDP)
Is the total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production but before deducting allowances for the consumption of fixed capital. Gross domestic product, as here defined, is 'at market prices'. It is equivalent to gross national expenditure plus exports of goods and services less imports of goods and services.
Gross fixed capital formation
The value of acquisitions of new and existing produced assets, other than inventories, less the value of disposals of new or existing produced assets, other than inventories.
Financial Intermediation Services Indirectly Measured (FISIM)
Measures the service implicitly provided by financial intermediaries, such as banks, on deposit and loan facilities. It is measured as the difference between the interest rates on loans and deposits and a pure or reference rate of interest, multiplied by the level of loans and deposits, respectively.
Intangibles
Patents, copyrights, mineral concessions, and similar non-physical non-financial assets. In the ASNA, expenditures on these assets are capitalised and therefore not recorded as consumption expenditure.
Interest expense
Nominal interest on unfunded superannuation and other interest payable. Nominal interest on unfunded superannuation is the imputed interest accrued during the period on unfunded superannuation liabilities.
Interest income
Income accrued by owners of financial assets such as deposits, securities other than shares, loans, and accounts receivable in return for providing funds to other entities.
Jurisdiction
The public sector units over which the Commonwealth Government or an individual state or territory government has direct control or, in the case of local government authorities, the government which administers the legislation under which the authority was established.
Levels of Government
The public sector comprises all organisations owned or controlled by any of the three levels of government within the Australian political system; national (which includes Commonwealth and multi-jurisdictional), state and local. In this release, statistics including all three levels are called 'All Levels of Government'. The multi-jurisdictional sector is not shown separately but is included in the calculation of All Levels of Government tables.
Operating statement
The operating statement presents details of transactions in GFS revenues, GFS expenses and the net acquisition of non-financial assets for an accounting period. GFS revenues defined as transactions that increase net worth and GFS expenses as transactions that decrease net worth. Net acquisition of non-financial assets equals gross fixed capital formation, less depreciation, plus changes in inventories plus other transactions in non-financial assets. Two key GFS analytical balances in the operating statement are GFS Net Operating Balance (NOB) and GFS Net Lending (+) / Borrowing (-).
Public non-financial corporations
Resident government-controlled corporations and quasi-corporations engaged in the production of market goods and/or non-financial services.
Sales of goods and services
Revenue from the direct provision of goods and services by general government and public corporations.
Seasonal adjustment
Seasonal adjustment is used to remove the effects of seasonal factors.
Seasonal adjustment - chain volume measures
Seasonally adjusted chain volume estimates are calculated from seasonally adjusted estimates expressed in the prices of the previous year. These estimates are benchmarked to annual original estimates so that they sum to the corresponding annual original figures.
Taxation revenue
In GFS, some Commonwealth Government taxation revenue is recorded using the tax liability method, under which revenue is measured when a liability to pay tax arises from an assessment process. Within the national accounts, tax revenue is recorded when the taxpayer performs the underlying economic activity that gives rise to a tax liability.