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Part C - The main statements

Australian System of Government Finance Statistics: Concepts, Sources and Methods
Reference period
2015
Released
23/12/2015
Next release Unknown
First release

15.8.

For publication purposes, the GFS framework is divided into a number of separate statements, each of which focuses on analytical aggregates or balances of particular user attention. These statements are the:

  • Statement of operations;
  • Statement of sources and uses of cash,
  • Balance sheet;
  • Statement of stocks and flows;
  • Statement of total changes in net worth;
  • Summary statement of explicit contingent liabilities and implicit contingent liabilities;
  • Statement of stocks and flows of financial assets and liabilities by source;
  • Gross public sector debt and other liabilities at market value by level of government subsector;
  • Net public sector debt and other liabilities at market value by level of government subsector; and 
  • Debt instruments at market value by maturity.

15.9.

A brief description of the structure of these statements is provided below.

The statement of operations

15.10.

The statement of operations presents details of transactions in GFS revenues, GFS expenses and the net acquisition of non-financial assets. In a broad conceptual sense, GFS revenues are defined as transactions that increase net worth and GFS expenses as transactions that decrease net worth. Net acquisition of nonfinancial assets equals gross fixed capital formation, less depreciation, plus changes in inventories and other transactions in non-financial assets. An example outline of the statement of operations and the main relationships within it is provided in Table 15.1 below.

Table 15.1 - The statement of operations (example outline)
Transactions affecting net worth:$
Revenue 
Taxation revenue
Current grants and subsidies
Sales of goods and services
Interest income
Dividend income (including tax equivalents)
Other revenue
Total
 
Expenses 
Gross operating expenses
Depreciation
Employee expenses
Other operating expenses
Total
Nominal superannuation interest expenses
Other interest expenses
Other property expenses
Current transfers
Grant expenses
Subsidy expenses
Other current transfers
Capital transfers
Grant expenses
Other capital transfers
Total
 
Net Operating Balance 
Net acquisition of non-financial assets 
Gross fixed capital formation
less Reductions in non-financial assets due to depreciation
plus Change in inventories
plus Other transactions in non-financial assets
Total
 
GFS Net Lending(+)/Borrowing(-) 

 

15.11.

Two important analytical balances are derived in the statement of operations. Transactions in revenues less transactions in expenses equals the Net Operating Balance. The subsequent deduction of transactions in the net acquisition of non-financial assets results in the GFS Net Lending (+) / Borrowing (–), which is also equal to the net result of transactions in financial assets and liabilities.

15.12.

The Net Operating Balance is a summary measure of the on-going sustainability of government operations. It is conceptually intended to be equivalent to the national accounting concept of Savings plus Capital Transfers, but in practice a reconciliation to the ASNA measure will be required to account for some differences in methodology and valuation used in the Australian GFS.

15.13.

GFS Net Lending (+) / Borrowing (–) is a summary measure which in essence indicates the extent to which government is either putting financial resources at the disposal of other sectors in the economy or utilising the financial resources generated by other sectors. It may therefore be viewed as an indicator of the financial impact of government activity on the rest of the economy. It is conceptually equivalent to the national accounting concept of Net Lending, but in practice GFS Net Lending (+) / Borrowing (–) will differ due to the different treatment and valuation of some component items.

The statement of sources and uses of cash

15.14.

The statement of sources and uses of cash identifies how cash is generated and applied in the GFS. Cash is classified as arising from operating, investing and financing activities of government. An example outline of the statement of sources and uses of cash is presented in Table 15.2 below.

Table 15.2 - The statement of sources and uses of cash (example outline)
Cash flows from operating activities:$
Revenue cash flows
 Taxes received
 Grants and subsidies received
 Receipts from sales of goods and services
 Interest received
 Other receipts
 Total
Expense cash flows
 Compensation of employees
 Purchases of goods and services
 Grants paid
 Subsidies paid
 Interest paid
 Other payments
 Total
Net cash flows from operating activities 
Net cash flows from transactions in non-financial assets 
 Sales of non-financial assets
 Purchases of new non-financial assets
 Purchases of second-hand non-financial assets
 Total
Expenditure cash flows 
Net cash flows from transactions in financial assets for policy purposes 
Net cash flows from investments in financial assets for liquidity management purposes
 
Net cash flows from financing activities 
 Advances received (net)
 Borrowing (net)
 Deposits received
 Other financing (net)
 Total
Net change in the stock of cash 
Cash surplus (+)/Cash deficit (-)
Supplementary information Acquisition of non-financial assets under finance lease 
Cash surplus (+) / Cash deficit (-) (including the acquisition of non-financial assets under finance leases. 

15.15.

The statement of sources and uses of cash contains four derived items, including one key analytical balance. These are net cash inflows from operating activities; GFS Cash Surplus (+) / GFS Cash Deficit (-) (this is a key analytical balance); the net cash inflow from financing activities; and the net increase / decrease in cash held. A summary of the four derived items of the statement of sources and uses of cash can be found in Table 15.3 below.

Table 15.3 - Summary of balancing items from the statement of sources and uses of cash
Balancing itemFormula
Net Cash Inflow from Operating ActivitiesRevenue cash flows minus Expense cash flows
GFS Cash Surplus (+) / GFS Cash Deficit (-)
****This is the key analytical balance****
Revenue cash flows minus Expense cash flows plus Net cash outflow from investments in non-financial assets
Net Cash Inflow from Financing ActivitiesNet incurrence of liabilities minus Net acquisition of financial assets in cash
Net Change in the Stock of CashGFS Cash Surplus(+) / GFS Cash Deficit(-) add Net Cash Inflow from Financing Activities

 

The balance sheet

15.16.

The balance sheet shows assets, liabilities and GFS Net Worth. An example outline of the balance sheet is presented in Table 15.4 below.

Table 15.4 - The balance sheet (example outline)
Assets$
Non-financial assets 
 Non-financial produced assets
 Inventories
 Valuables
 Other produced assets
 Land
 Mineral and energy resources
 Other non-produced assets
 Total
 
Financial assets 
 Currency and deposits
 Advances
 Other loans and placements
 Debt securities
 Equity including contributed capital
 Other financial assets
 Total
 
Total 
Liabilities 
 Currency and deposits
 Advances
 Other loans and placements
 Debt securities
 Provisions for defined benefit superannuation
 Provisions for other employee entitlements
 Other liabilities
 Total
 
Net worth (excluding shares and other contributed capital) 
Equity including contributed capital 
Net worth 
Memorandum items 
 Implicit transfers
 Total arrears
 Interest on arrears
 Non-performing loan assets at market value
 

 

15.17.

Assets represent instruments or entities over which ownership rights are enforced by institutional units and from which economic benefits may be derived by holding them, or using them, over a period of time. Assets are distinguished between non-financial and financial.

15.18.

Liabilities represent obligations to provide economic value to other institutional units. The classification of liabilities and financial assets needs to be symmetrical for consolidation purposes.

15.19.

GFS Net Worth is defined as assets less liabilities less shares and other contributed capital. For the general government sector, Net Worth is simply assets less liabilities since shares and other contributed capital are zero. For listed public corporations, shares and other contributed capital are recorded at current market values and for those which are unlisted, it is set equal to the value of assets less liabilities. The GFS Net Worth for unlisted public corporations is therefore zero.

The statement of stocks and flows

15.20.

The statement of stocks and flows shows the opening balances of assets and liabilities, the related flows during the reporting period and the closing balances. The preferred valuation basis for all stocks and flows is current market prices. An example outline of the statement of stocks and flows is provided in Table 15.5 below.

Table 15.5 - The statement of stocks and flows (example outline)
 Opening StocksTransactionsRevaluationsOther Volume ChangesClosing Stocks
Assets     
Non–financial assets     
Non-financial produced assets
Inventories
Valuables
Other produced assets
Land
Mineral and energy resources
Other non-produced assets
Total
     
Financial assets     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Other financial assets
Total
     
Total     
Liabilities     
Currency and deposits
Advances
Other loans and placements
Debt securities
Provisions for defined benefit superannuation
Provisions for other employee entitlements
Other liabilities
Total
     
Net worth (excluding shares and other contributed capital)     
Equity including contributed capital     
GFS Net worth     
Net debt     
Net financial worth     

 

15.21.

The statement of stocks and flows records the opening stocks, transactions, revaluations and other volume changes, and closing stocks of each of the categories described above. Transactions in financial assets represent acquisitions of financial assets less liquidation of such assets (e.g. debtors’ repayment of the financial claims represented by the assets). Acquisition of financial assets includes making deposits of cash with financial institutions, making advances to other units of the public sector or to private sector entities, making investments in other units, and purchasing shares or making other forms of capital contribution to public and private sector corporations for policy or liquidity management purposes. Revaluations occur most often for financial assets, such as shares and securities, that are traded on financial markets or are subject to exchange rate fluctuations. Other volume changes that may have an effect on financial assets include the writing off of bad debts by a creditor. Only write-offs that are not made by mutual agreement between creditor and debtor are treated as other volume changes (those made with mutual agreement are treated as capital transfer expenses).

The statement of total changes in net worth

15.22.

The statement of total changes in net worth shows the net operating balance, the change in net worth due to other economic flows, total other economic flows and the total change in net worth. An example outline of the statement of total changes in net worth is provided in Table 15.6 below.

Table 15.6 - The statement of total changes in net worth (example outline)
Transactions affecting net worth:$
Revenue
Expenses
 
Net Operating Balance 
Change in net worth due to other economic flows: 
Financial assets 
Holding gains and losses
Other change in the volume of financial assets
 
Non-financial assets 
Holding gains and losses
Other changes in the volume of non-financial assets
 
Liabilities 
Holding gains and losses
Other changes in the volume of liabilities
 
Total other economic flows 
Total change in net worth 

 

15.23.

The statement of total changes in net worth combines the results of the statement of operations and the statement of stocks and flows in one statement. This statement serves to highlight the total changes in net worth of government, and explains the sources of changes in assets and liabilities from one reporting period to another in terms of transactions in revenue and expense and other economic flows.

The statement of contingent liabilities

15.24.

The statement of contingent liabilities records one-off guarantees, other explicit contingent liabilities not elsewhere classified, and implicit contingent liabilities. An example outline of The statement of contingent liabilities is provided in Table 15.7 below.

Table 15.7 - The statement of contingent liabilities (example outline)
One-off Guarantees$
 Publicly guaranteed debt
 Other one-off guarantees
 Total
 
Other explicit contingent liabilities not elsewhere classified 
 Legal claims
 Indemnities
 Uncalled share capital
 Total
 
Total explicit contingent liabilities 
Implicit contingent liabilities 
Present value of implicit obligations for future social security benefits
Other implicit contingent liabilities not elsewhere classified
 

 

15.25.

The statement of contingent liabilities records the explicit and some implicit contingent liabilities. Contingent liabilities are obligations that do not arise unless a particular, discrete event(s) occurs in the future. These contingencies create fiscal risks and may arise from deliberate public policy or from unforeseen events.

The statement of stocks and flows of financial assets and liabilities by source

15.26.

The statement of stocks and flows of financial assets and liabilities by source shows the opening balances of financial assets and liabilities, the related flows during the reporting period and the closing balances by source. The preferred valuation basis for all stocks and flows is current market prices. An example outline of the statement of stocks and flows of financial assets and liabilities by source is provided in Table 15.8 below.

Table 15.8 – The statement of stocks and flows of financial assets and liabilities by source (example outline)
 Opening StocksTransactionsRevaluationsOther Volume ChangesClosing Stocks
Financial Assets     
Domestic Bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Other financial assets
Total
     
Non-bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Other financial assets
Total
     
Total     
Foreign Bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Other financial assets
Total
     
Non-bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Other financial assets
Total
     
Total     
Liabilities     
Domestic Bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Provisions for defined benefit superannuation
Provisions for other employee entitlements
Other liabilities
Total
     
Non-bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Provisions for defined benefit superannuation
Provisions for other employee entitlements
Other liabilities
Total
     
Total     
Foreign Bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Provisions for defined benefit superannuation
Provisions for other employee entitlements
Other liabilities
Total
     
Non-bank     
Currency and deposits
Advances
Other loans and placements
Debt securities
Equity including contributed capital
Provisions for defined benefit superannuation
Provisions for other employee entitlements
Other liabilities
Total
     
Total     

 

15.27.

The statement of stocks and flows of financial assets and liabilities by source shows the opening balances, transactions, revaluations and other economic flows, and the closing balances of financial assets and liabilities by source. The source consists of a split between domestic bank or non-bank financial assets and liabilities; or foreign bank or non-bank financial assets and liabilities.

Gross public sector debt and other liabilities at market value by level of government subsector

15.28.

Gross public sector debt and other liabilities at market value by level of government subsector presents debt instruments on the gross basis at their current market value, and by level of government subsector. An example outline of gross public sector debt and other liabilities at market value by level of government subsector is provided in Table 15.9 below. Tables will be published for all Australia and for each jurisdiction.

Table 15.9 - Gross public sector debt and other liabilities at market value by level of government subsector (example outline) – Jurisdictional
 General governmentTotal general government sector¹Total public non-financial sector²Total public sector³
Debt securities    
plus Loans    
Equals L1    
plus SDRs    
plus Currency and deposits    
Equals L2    
plus Other Accounts payable    
Equals L3    
plus Insurance, superannuation and standardised guarantee schemes    
Equals L4    
plus Financial derivatives    
Equals L5    
plus Equities    
Equals L6    

Note: The columns in this table are cumulative from left to right and the rows are cumulative from top to bottom

  1. Includes all general government units within the jurisdiction (including local government units, where applicable)
  2. Includes 1 above and all PNFC units within the jurisdiction (including local government PNFC units, where applicable)
  3. Includes 2 above and all PFC units within the jurisdiction (including local government PFC units, where applicable)

15.29.

Gross public sector debt and other liabilities at market value by level of government subsector shows debt and equity instrument coverage on the gross basis at the current market value as L1 to L6, and is further identified by level of government institutional coverage. Further information on debt instruments and the presentation of debt data in ABS GFS may be found in Chapter 8 of this manual.

Net public sector debt and other liabilities at market value by level of government subsector

15.30.

Net public sector debt and other liabilities at market value by level of government subsector presents debt instruments on the net basis at their current market value, and by level of government subsector. An example outline of net public sector debt and other liabilities at market value by level of government subsector is provided in Table 15.10 below.

Table 15.10 - Net public sector debt and other liabilities at market value by level of government subsector (example outline) – Jurisdictional
 General governmentTotal general government sector¹Total public non-financial sector²Total public sector³
Debt securities    
plus Loans    
Equals L1    
plus SDRs    
plus Currency and deposits    
Equals L2    
plus Other Accounts payable    
Equals L3    
plus Insurance, superannuation and standardised guarantee schemes    
Equals L4    
plus Financial derivatives    
Equals L5    
plus Equities    
Equals L6    

Note: The columns in this table are cumulative from left to right and the rows are cumulative from top to bottom

  1. Includes all general government units within the jurisdiction (including local government units, where applicable)
  2. Includes 1 above and all PNFC units within the jurisdiction (including local government PNFC units, where applicable)
  3. Includes 2 above and all PFC units within the jurisdiction (including local government PFC units, where applicable)

15.31.

Net public sector debt and other liabilities at market value by level of government subsector shows debt instrument coverage on the net basis at the current market value as L1 to L6, and is further identified by level of government institutional coverage. Further information on debt instruments and the presentation of debt data in ABS GFS may be found in Chapter 8 of this manual.

Debt instruments at market value by maturity

15.32.

Debt instruments at market value by maturity presents debt instruments at their current market value and on the basis of remaining maturity. An example outline of debt instruments at market value by maturity is provided in Table 15.11 below. Further information on the presentation of debt instruments by maturity may be found in Appendix 2 of this manual.

Table 15.11 - Debt instruments at market value by maturity (example outline)
Debt InstrumentShort term debt by original maturityLong term debt by original maturityShort term debt by remaining maturity¹
 With payment due in one year or lessWith payment due in more than one year = Long term by remaining maturityTotal
Debt securities     
Loans     
SDRs     
Currency and deposits     
Other accounts payable     
Insurance, superannuation and standardised guarantee schemes     
Financial derivatives     
Total     
  1. Short term by remaining maturity is calculated as Short term by original maturity plus Long term by original maturity with payment due in one year or less.