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26/11/2024

Financial Statements Better Practice Guide

This Department of Finance (Finance) Financial Statements Better Practice Guide (BPG) replaces the withdrawn Australian National Audit Office (ANAO) Public Sector Financial Statements Better Practice Guide.

The BPG focuses on financial statements preparation by Commonwealth entities and Commonwealth companies, as distinct from accounting treatments or disclosures for Commonwealth entities, and complements the:

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1. Introduction

The BPG focuses on financial statements preparation, as distinct from accounting treatments or disclosures.

2. Framework for preparing financial statements

Whole of Government standards and reporting requirements.

3. Knowing your entity's business

Each entity needs to be familiar with relevant requirements of the applicable financial reporting framework.

4. Planning for year-end financial statements

Effective project management underpins successful financial statements preparation processes.

5. Preparing a schedule of activities and tasks

Outlines the main activities, events and project milestones—when they are planned to start and when they are due to be completed.

6. Actioning and monitoring the plan – Financial Statements Better Practice Guide

Activities that may be required in actioning and monitoring the project plan.

7. Development processes and procedures

Maintaining good financial reporting practices throughout the year also enhances the quality of financial statements.

8. Structuring the financial statements

Aids such as pro forma or illustrative financial statements assist entities to ensure their financial statements satisfy reporting requirements.

9. Quality assurance and certifications

Putting in place review arrangements at key points during the preparation process.

10. Foundations for a smooth external audit process

The preparation of the financial statements involves applying appropriate accounting policies and financial management practices that comply with legislative and financial reporting requirements.

11. Including financial statements in annual reports

Better practice entities use an unamended electronic copy of the financial statements and auditor’s report for the purpose of being included in the annual report.

12. Project closure

Reviewing the closing process involves examining current processes and documenting responsibilities and related timeframes during the year, and at year-end.

13. Guidance and support

Support from the Department of Finance.

14. Appendices

Acronyms and abbreviations
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