Treasurer's Annual Financial Statements 06-07 and 05-06
12. Treasurer's Annual Financial Statements 06-07 and 05-06
Mr Elferink to for Treasurer
- On Page 25 of the 2005-06 TAFS the Actual Audited Total Revenue for the year 2005-06 is determined to be $3,001,613,000. On the 2006-07 TAFS (page 27) the 2005-06 Actual Audited figure appears as $3,036,930,000. The difference is $35,317,000.
1. By what mechanism does a finalised and audited figure change from one year to the next when it reflects the same reporting period.
Answered on 28/10/2008
By way of background it is worth noting that under Australian Accounting Standards where there has been a change in accounting policy between years it is a requirement that previous year comparatives are restated to provide consistency with current year disclosures. This is so that readers of the financial statements can compare the previous year’s numbers on the same basis as that applying to current year disclosures.
Where this occurs the financial statements are required to disclose this change of treatment so that readers are fully informed of the impact of the restatement.
In this instance Territory Housing, a government business division, had previously been included in the public non financial corporation sector because of its commercial focus in the provision of the delivery of public housing services. In line with the change in treatment announced in the May 2007 Budget, Territory Housing was reclassified within the general government sector on the basis of its added responsibilities for indigenous housing policy and the management of public housing in remote communities.
This change in sector is the reason for the restatement of the 2005-06 comparatives in the TAFS so as to bring them in line with the reclassification in 2006-07. This change in classification was fully scrutinised by audit and is clearly disclosed on page 11 in the Overview section and page 46 (note 1 (d) comparatives) in the audited section of the 2006-07 TAFS.
Other recent examples of the changes to comparatives include the transition to International Financial Reporting Standards from 1 July 2005 that resulted in a restatement of the 2004-05 comparatives in the 2005-06 TAFS. A similar restatement has been made to the 2006-07 comparatives in the yet to be tabled 2007-08 TAFS following the adoption of the new accounting standard AASB 1049 by the Territory that harmonises accounting standards with the Government Finance Statistics format.