Divergences between state and commonwealth government financial reporting and GFS may occur because of conceptual determinations and timing recognition differences, to ensure alignment with economic activity as measured across ABS macroeconomic statistics.
These differences primarily impact:
- measures of government subsidies and other support payments to businesses and households
- non-employee expenses
- change in inventories.
Following the introduction of several Australian Accounting Standards Board (AASB) standard changes from 1 July 2019, divergences between economic statistics publications and government financial reporting due to accounting standard changes relate to:
- Leases (AASB 16)
- Revenue recognition (AASB 15 & 1058)
- Service Concession Arrangements (AASB 1059).
GFS outputs are consistent with the historical treatments, which has resulted in increased divergences between economic statistics publications and government financial reporting.