decommissioning and makegood Renewable The issuance and registration of The issuance and registration of AAS Energy RECs is considered to be an RECs is considered to be Certificates administrative function and does government financial transactions (RECs) not result in the recognition of resulting in the recognition of assets or liabilities and, assets, liabilities, revenue and consequently, no revenues or expenses. expenses are recognised. Dividends paid Treated as an equity distribution. Dividends are treated as an ABS GFS by public Equity distributions are treated as expense. corporations a distribution of profits, as opposed to an expense. Dividends paid Dividends are recognised in the Dividends are recognised when AAS by the Reserve year profit was earned. the Treasurer makes a Bank of Australia determination. Interest expense Interest expense will be recorded Interest expense will be recorded AAS measurement on a contractual (debtor) rate on a market (creditor) rate basis. National Funding contributions by the state Funding contributions by the state AAS Disability and territory governments to NDIS and territory governments to NDIS Insurance are treated as sales of goods and are treated as grants revenue. Scheme (NDIS) services revenue. revenue In-kind disability services provided In-kind disability services provided by the States and Territory by the States and Territory Governments are treated as sales Governments are treated as other of goods and services revenue. revenue. Table B13: Major differences between AAS and ABS GFS (continued) AAS treatment ABS GFS treatment Treatment adopted Issue Commercial tax effect Corporations in the PNFC Deferred tax assets and ABS GFS accounting assets and PFC sectors record tax liabilities are reversed so and liabilities expenses on a commercial that corporations record tax basis. expenses on a consistent basis to the Australian Taxation Office. Fiscal aggregate differences Net worth of PNFC Calculated as assets less Calculated as assets less AAS and PFC sectors liabilities. liabilities less shares and contributed capital. Net financial worth of Calculated as financial assets Calculated as financial AAS PNFC and PFC less liabilities. assets less total liabilities sectors less shares and contributed capital. Classification differences Prepayments Treated as a nonfinancial Treated as a financial ABS GFS asset.
decommissioning and makegood Renewable Energy Certificates (RECs) The issuance and registration of RECs is considered to be an administrative function and does not result in the recognition of assets or liabilities and, consequently, no revenues or expenses are recognised. The issuance and registration of RECs is considered to be government financial transactions resulting in the recognition of assets, liabilities, revenue and expenses. AAS Dividends paid by public corporations Treated as an equity distribution. Equity distributions are treated as a distribution of profits, as opposed to an expense. Dividends are treated as an expense. ABS GFS Dividends paid by the Reserve Bank of Australia Dividends are recognised in the year profit was earned. Dividends are recognised when the Treasurer makes a determination. AAS Interest expense measurement Interest expense will be recorded on a contractual (debtor) rate basis. Interest expense will be recorded on a market (creditor) rate AAS National Disability Insurance Scheme (NDIS) revenue Funding contributions by the state and territory governments to NDIS are treated as sales of goods and services revenue. In-kind disability services provided by the States and Territory Governments are treated as other revenue. Funding contributions by the state and territory governments to NDIS are treated as grants revenue. In-kind disability services provided by the States and Territory Governments are treated as sales of goods and services revenue. AAS Table B13: Major differences between AAS and ABS GFS (continued) Issue AAS treatment ABS GFS treatment Treatment adopted Commercial tax effect accounting assets and liabilities Corporations in the PNFC and PFC sectors record tax expenses on a commercial basis. Deferred tax assets and liabilities are reversed so that corporations record tax expenses on a consistent basis to the Australian Taxation Office. ABS GFS Fiscal aggregate differences Net worth of PNFC and PFC sectors Calculated as assets less liabilities. Calculated as assets less liabilities less shares and contributed capital. AAS Net financial worth of PNFC and PFC sectors Calculated as financial assets less liabilities. Calculated as financial assets less total liabilities less shares and contributed capital. AAS Classification differences Prepayments Treated as a nonfinancial asset. Treated as a financial ABS GFS
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