Minor updates have been made to RMG-118 to clarify the guidance. For questions regarding these updates, please contact Accounting Policy.
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 applies to all relevant officials, particularly chief financial officers and finance teams, in Commonwealth entities involved in implementing machinery of government (MoG) changes.
For ease of reference and presentation, this guide uses 'entities' to mean Commonwealth entities as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Key points
This guide outlines the accounting requirements for the implementation of MoG changes, particularly:
- assets, liabilities, revenues and expenses transferring between entities when control of these passes from one entity to the other
- entities’ agreement of annual appropriation transfer amounts, in accordance with section 75 of the PGPA Act.
The scope of this guide is aligned with AASB 1004 Contributions (AASB 1004) paragraphs 54-59 ‘Restructure of administrative arrangements’. For the purposes of paragraphs 54–59 of AASB 1004, section 26(2)(a) of the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) defines ‘government department’ as any government controlled entity.
This RMG excludes transfers of assets and liabilities that are not restructures of administrative arrangements. Appendix A in RMG-123 Designating transfers of assets and liabilities as ‘contributions by owners' (equity) (RMG-123) outlines the steps involved in assessing whether any transfer of assets and liabilities between government entities should be accounted for as contributions by and distributions to owners, either as a restructure of administrative arrangements or otherwise.
Resources
Related resources including guidance, glossary terms and relevant sections of the PGPA Act, Rule and other legislation are located in the right-hand menu.
Key information to assist you
