annual report 2012 – 13 - Australian Government Solicitor

AUSTRALIAN GOVERNMENT SOLICITORNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2013Contents1 Summary of significant accounting policies2 Segment reporting3 Economic dependency4 Events occurring after Balance Sheet date5 Income6 Expenses7 Operating expenses – other8 Income tax9 Dividends provided for and paid10 Cash, cash equivalents and investments11 Receivables12 Other current assets13 Non-current assets14 Interest bearing liabilities15 Provisions16 Payables17 Cash flow reconciliation18 Client and third party funds19 Contingent liabilities and assets20 Key management personnel remuneration21 Remuneration of auditors22 Financial instruments>1. Summary of significant accountingpolicies1.1 Objective of Australian Government SolicitorAustralian Government Solicitor (AGS) is a for-profitAustralian Government controlled entity.AGS is the leading provider of legal and related servicesto Australian Government departments and agencies.Operating on a fully commercial and competitive basis,we are one of Australia’s largest national law firms, withan office in every capital city.AGS is a statutory authority, within the Attorney-General’s portfolio, established under the Judiciary Act1903.We are subject to the reporting and accountabilityrequirements of the Commonwealth Authorities andCompanies Act 1997. AGS is also a government businessenterprise as prescribed by regulations made under theCommonwealth Authorities and Companies Act. AGS has2 shareholder ministers, the Attorney-General and theMinister for Finance and Deregulation.AGS acts primarily for Australian Governmentdepartments and agencies, and for entities in which theAustralian Government has an interest. AGS also acts forState and Territory government organisations at theirexecutive government’s request. The continued existenceof the Authority in its present form and with its presentprograms is dependent on Government policy.1.2 Basis of preparation of the financial statementsThe financial statements are general purpose financialstatements and are required by clause 1(b) of Schedule 1 tothe Commonwealth Authorities and Companies Act 1997.The financial statements have been prepared inaccordance with:• Finance Minister’s Orders (FMOs) for reporting periodsending on or after 1 July 2012• Australian Accounting Standards and Interpretationsissued by the Australian Accounting Standards Boardthat apply for the reporting period.The financial statements have been prepared on anaccrual basis and is in accordance with historical costconvention except for certain assets and liabilities at fairvalue. Except where stated, no allowance is made for theeffect of changing prices on the results or the financialposition.The financial report is presented in Australian dollars andvalues are rounded to the nearest thousand dollars unlessotherwise specified.Unless an alternative treatment is specifically required byan accounting standard or the FMOs, assets and liabilitiesare recognised in the balance sheet when and only whenit is probable that future economic benefits will flowto AGS or a future sacrifice of economic benefits willbe required and the amounts of the assets or liabilitiescan be reliably measured. However, assets and liabilitiesarising under executory contracts are not recognisedunless required by an accounting standard. Liabilities andassets that are unrecognised are reported in the scheduleof commitments and the schedule of contingencies.AGS Annual report 2012–13 65