All relevant officials, particularly chief financial officers and finance teams, in Commonwealth entities that are transferring assets and/or liabilities to or from another Commonwealth entity.
Transfers of assets and/or liabilities may be treated as contributions by and distributions to owners:
- when part of a business transfer which constitutes a restructure of administrative arrangements under AASB 1004 Contributions (AASB 1004) and RMG 118 Accounting for machinery of government changes (RMG 118), or
- through formal designation under AASB 1004, AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities (Interpretation 1038) and this RMG.
Transfers of assets and/or liabilities that:
- are contributions by or distributions to owners, are accounted for through the statement of financial position, as adjustments to assets, liabilities and equity
- are not contributions by or distributions to owners, are recognised as revenues and/or expenses in the statement of comprehensive income.
For ease of reference and presentation, the Resource Management Guide (RMG) uses ‘entities’ to mean Commonwealth entities, as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
- outlines the criteria for certain transfers of assets and/or liabilities to wholly owned Commonwealth entities, to be designated as ‘contributions by owners’ in accordance with AASB 1004 and Interpretation 1038
- outlines at Appendix A the overall process for assessing whether transfers of assets and liabilities may be accounted for as contributions by or distributions to owners, whether as restructures of administrative arrangements under AASB 1004 and RMG 118 or through designation under AASB 1004, Interpretation 1038 and this RMG
- outlines at Appendix B guidance on common asset and liability transfers.
This guide replaces Deeming or designating transfers of assets and liabilities as ‘contributions by owners’ (equity) (RMG 123), dated July 2020.
Related resources including links, glossary terms and relevant sections of the PGPA Act and Rule are located in the right hand menu.