Parks Victoria - Annual Report 2009-10

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.3 Asset recognition and measurementParks Victoria only recognises assets on land it controls as the committee of management. Parks Victoriaalso manages other assets on behalf of the Crown. Those assets and any new assets constructed by ParksVictoria on behalf of the Crown are recognised in the asset register of the Department of Sustainabilityand Environment.2.4 Scope and presentation of financial statementsComprehensive operating statementIncome and expenses in the comprehensive operating statement are classified according to whether ornot they arise from ‘transactions’ or ‘other economic flows’. This classification is consistent with the wholeof government reporting format and is allowed under AASB 101 Presentation of financial statements.‘Transactions’ are those economic flows that are considered to arise as a result of policy decisions, usuallyinteractions between two entities by mutual agreement. Transactions also include flows within an entity,such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset andas the consumer of the service provided by the asset. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.‘Other economic flows’ are changes arising from market re-measurements. They include gains and lossesfrom disposals, revaluations and impairments of non-current physical assets and intangible assets; fairvalue changes of financial instruments and revaluation of certain employee benefit liabilities.The net result is equivalent to profit or loss derived in accordance with AASs.Balance sheetAssets and liabilities are presented in liquidity order with assets aggregated into financial assets and nonfinancialassets.Current and non-current assets and liabilities (those expected to be recovered or settled beyond 12months) are disclosed in the notes, where relevant.Statement of changes in equityThe statement of changes in equity presents reconciliations of each non-owner and owner equity openingbalance at the beginning of the reporting period to the closing balance at the end of the reportingperiod. It also shows separately changes due to amounts recognised in the comprehensive result andamounts recognised in other comprehensive income related to other non-owner changes in equity.Cash flow statementCash flows are classified according to whether or not they arise from operating activities, investingactivities or financing activities. This classification is consistent with requirements under AASB 107Statement of cash flows.60 Parks Victoria - Annual Report 2009-10