RMG-125 has been updated for 2025-26 reporting requirements. For a summary of these changes, please see key changes to FRR RMG-116 RMG-125 and PRIMA 2024-25. For any queries, please contact Accounting Policy. In addition the updates go to streamlining and clarification of content to improve usability and focus on financial statement preparation.
RMGs are guidance documents. The purpose of an RMG is to support PGPA Act entities and companies in meeting the requirements of the PGPA framework. As guides, RMGs explain the legislation and policy requirements in plain English. RMGs support accountable authorities and officials to apply the intent of the framework. It is an official’s responsibility to ensure that Finance guidance is monitored regularly for updates, including changes in policy/requirements.
Audience
This guide will support officials in Commonwealth entities (non-corporate and corporate Commonwealth entities) who are preparing entity financial statements in compliance with the:
⇒ Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) and
⇒ the Australian Accounting Standards (AAS).
Key points
This guide:
- will assist officials with existing knowledge of FRR and AAS requirements and/or is to be read in conjunction with the FRR and AAS. It is not a training tool and does not give ‘step-by-step’ guidance for preparing financial statements
- provides general information to support the preparation of annual financial statements (for example definitions, rounding and materiality policies) and explains accounting treatments required by the FRR, including where the AAS allows choice of accounting treatments
- provides relevant references to the FRR that should be read together with the supporting guidance
- aligns with the Department of Finance (Finance) Primary Reporting and Information Management Aid forms of financial statements (PRIMA forms), which assists entities in preparing financial statements.
Entities need to apply professional judgement in preparing annual financial statements, to:
- ensure the FRR and AAS are correctly applied for their entity’s classification and unique circumstances
- present fairly the entity’s financial position, financial performance and cash flows.
Resources
Related resources including links to guidance, glossary terms and relevant sections of the PGPA Act and Rule are in the right-hand menu. The following resources are also available under Tools and templates:
- Prompts to user-focused presentation
- Disclosure of trust moneys
- Related party disclosures
- Primary reporting and information management aid (PRIMA) forms of financial statements
- Financial Statements Better Practice Guide
