Commonwealth Entities Financial Statements Guide (RMG 125)


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.
The Public Governance, Performance and Accountability Act 2013 (PGPA Act), or other legislation that established particular Commonwealth corporate entities, requires all Commonwealth entities to prepare financial statements that comply with the FRR and AAS.

RMG-125 has been updated for 2023-24 reporting requirements. For a summary of changes, please see Key Changes to FRR, RMG-125 and PRIMA 2023-24.

Update on Sustainability (Climate-related) reporting:

  • The Australian Accounting Standards Board (AASB) has commenced its work making Australian sustainability standards, as the International Sustainability Standards Board has now issued its standards. For further information, please refer to guidance on APS Net Zero Emissions by 2030 and the AASB website.


Related resources including appendices, glossary terms and relevant sections of the PGPA Act and Rule are located in the right hand menu. 


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