This note outlines the basis of preparation and compliance information relating to the financial statements
- 1.1 Basis of Preparation
1.1 Basis of Preparation
This financial report of the Portable Long Service Benefits Authority (the Authority) is a general purpose financial report that consists of a Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes accompanying these statements. The general purpose financial report has been prepared in accordance with Australian Accounting Standards (AASs), Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board, and the requirements of the Financial Management Act 1994 and applicable Ministerial Directions.
The Authority is a not-for-profit entity for the purpose of preparing the financial statements. Where appropriate, those AASs paragraphs applicable to not-for-profit entities have been applied.
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, revenue and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. This financial report has been prepared on a going concern basis.
These financial statements were authorised for issue by the Governing Board of the Authority on 14 August 2019. The Authority’s reporting period is from 18 March 2019 to 30 June 2019.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
Functional and presentation currency
Items included in this financial report are measured using the currency of the primary economic environment in which the Authority operates (“the functional currency”). The financial statements are presented in Australian dollars, which is the Authority’s functional and presentation currency.
Classification between current and non-current
In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be realised or paid. The asset or liability is classified as current if it is expected to be turned over within the next twelve months, being the Authority’s operational cycle.
Unless otherwise stated, amounts in the report have been rounded to the nearest thousand dollar.
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Judgements, estimates and assumptions are required to be made about financial information being presented. The significant judgements made in the preparation of these financial statements are disclosed in the notes. Estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are made in the period in which the estimate is revised and also in future periods that are affected by the revision.
Judgements and assumptions made by management in applying AASs that have significant effects on the financial statements and estimates relate to:
- employee benefits provisions (Note 3.3)
- accrued expenses (Note 4.2)
- contingent assets and contingent liabilities (Note 6.2)
Reviewed 28 October 2019