It is important that financial statements comply with Australian Accounting Standards and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 and that they are presented in a manner that is easy for users to read and navigate. The following are practical suggestions for enhancing the readability of disclosures.
Financial summary
Q: Would a brief financial summary in the annual report help end users to understand your financial results?
☐ Yes ☐ No
Note: Such a summary is to accompany, but not form part of, the financial statements.
Contents Page
Q: Would grouping similar notes assist user's navigation (for example, employee information or funding)?
☐ Yes ☐ No
Note: While PRIMA forms contain an example of grouping, the appropriate order and grouping of notes varies between entities. Presentation of primary statements, administered schedules or the notes.
Q: Are subheadings for groupings (such as funding subheading for appropriations and special accounts notes) correct, clear, concise and in plain-English?
☐ Yes ☐ No
Q: Does the order of notes align with the most relevant items for your entity and end users (most important first), for assessing financial performance?
☐ Yes ☐ No
Presentation of primary statements, administered schedules or the notes
Q: For notes supporting primary statements or schedules that only include a few line items, would it be better to include these at the face of the statement or schedule, rather than including them as separate notes?
☐ Yes ☐ No
Q: Would combining line items in face statements/administered schedules (where appropriate) be helpful for users?
☐ Yes ☐ No
Q: Where there is flexibility in presenting disclosures in the primary statements/schedules or notes (for example, under AASB 1055 Budgetary Reporting), has the merits of both alternatives been considered?
☐ Yes ☐ No
Accounting policies
Q: Has each accounting policy description been reviewed to ensure they:
- do not include superfluous information (such as a description for a policy for finance leases if the entity does not have finance leases)
- are written in plain-English and relevant to end users?
☐ Yes ☐ No
Q: Would it help end-users if accounting policy text is co-located with relevant disclosures, rather than as a separate note (for example, information on key assumptions and estimates)?
☐ Yes ☐ No
Q: Are disclosures specific to a particular reporting period and are they still relevant? If so, is the level of detail appropriate (for example, breaches of section 83 of the Constitution and budgetary reporting)?
☐ Yes ☐ No
Formatting
Q: Does the format of each numerical table assist readability and accessibility for users?
☐ Yes ☐ No
Q: Is the orientation (portrait or landscape) appropriate for users?
☐ Yes ☐ No
Q: Does the font (including its size) support readability and accessibility?
☐ Yes ☐ No
Q: Would the removal of zero line items improve readability?
☐ Yes ☐ No
Q: Would combining line items that are not material, with other line items (unless required by accounting standards) be helpful to users?
☐ Yes ☐ No
Q: Would it be more helpful to include comparatives beside current year amounts, or in a separate table? Can a graph be used to present information rather than a table?
☐ Yes ☐ No
Q: Would combining tables improve presentation or save space (for example, combining some tables for PPE and intangibles; combining some appropriation reporting requirements)?
☐ Yes ☐ No
Q: Would co-locating departmental and administered information improve presentation?
☐ Yes ☐ No
Note: There are also practical considerations to ensure clear delineation between departmental and administered items and for readability, where departmental rounding differs to administered rounding.
