David H.
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In this blog, we summarise Queensland Treasury’s major changes in its financial reporting requirements (FRRs) for this year. This advice is for the preparers of the financial statements for whole-of-government reporting entities, those charged with governance at those entities, and users of their financial statements.

Departments and statutory bodies, including hospital foundations, are required to comply with Queensland Treasury’s Financial Reporting Requirements for Queensland Government Agencies. The 2023–24 FRRs are now available on Treasury’s website, which includes a summary of noteworthy changes.

The FRRs and illustrative statements are good resources even if your entity doesn’t need to follow them (for example, local governments, government owned corporations, or universities). This is because they demonstrate how to apply the accounting standards in a public sector environment.

Climate reporting and climate-related risks

FRR section 1.5 Climate Related Risks and Financial Reporting has been updated for the latest international and Australian developments around climate risk reporting, as well as Queensland Treasury’s reporting requirements.

At the Queensland Audit Office’s (QAO) client technical update event in February this year, and consistent with its approach last year, Queensland Treasury explained that agencies are not to publish any sustainability or climate reports without first consulting Queensland Treasury. Nor are they to adopt sustainability/climate exposure drafts that the Australian Accounting Standards Board has issued. Or adopt other international sustainability/climate frameworks by other global organisations (including standards the International Sustainability Standards Board has issued).

Queensland Treasury’s position is that climate-related reporting will be whole-of-government led once the Australian framework has been finalised.

Our March blog article: What we covered at our 2024 client technical update event highlights that the Australian Government had issued proposed legislation on the mandatory application of climate-related financial disclosures to certain entities reporting under the Corporations Act 2001 (Corporations Act). We expect these proposals will affect many Queensland government owned corporations (GOCs) that are registered under the Corporations Act. Such entities are consulting with Queensland Treasury.

We encourage all Queensland government entities to understand the proposed reporting changes and consider the potential impacts on their financial statements and operations.

FRR section 1.5 also includes updated reference to the Queensland Government’s response and approach to climate change and climate-related risks.

Accounting policies and accounting estimates

Similar to last year, there are no new material accounting standard and policy changes that Queensland Treasury requires entities to implement this financial year.

The main change we highlighted in our client technical update was for disclosures relating to ‘significant accounting policies’ being changed to ‘material accounting policy information’.

The change requires preparers to avoid standardised ‘boilerplate’ disclosures that duplicate or summarise international financial reporting standards without tailored information. Focused financial reporting on material accounting policy information aims to provide insight into how an entity has exercised judgement in selecting and applying its accounting policies. Treasury has updated FRR section 2C for these changes.

In practice, many entities have already adopted focused financial reporting, or effective financial reporting practices that QAO and Queensland Treasury promoted. Treasury made no significant changes to the illustrative financial statements in the FRRs – Sunshine Department and Future Bay Regional Health Foundation – in part, as illustrative financial statements need to demonstrate many examples of relevant disclosures. Editorial changes are noted in the summary of noteworthy changes.

When using illustrative financial statements, entities should continue to tailor them to their situations. Tailoring might result in entities not using disclosures in the illustrative financial statements, and/or adding additional disclosures of material information. See QAO’s prior blog article on this topic:

New accounting standards affecting future financial years

FRR section 1.4 includes new or updated sections for future financial years:

  • AASB 2022-10 Amendments to Australian Accounting Standards – Fair Value Measurement of Non-Financial Assets of Not-for-Profit Public Sector Entities, which commences financial years beginning on or after 1 January 2024 (that is, 1 July 2024 for 30 June year ends).
  • AASB 17 and AASB 2022-9 Amendments to Australian Accounting Standards – Insurance Contracts in the Public Sector, which commences financial years beginning on or after 1 July 2026.

You should consider whether these changes are likely to affect your agency.

We hope this blog provides a useful overview on the latest FRR changes.


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