Accounting Policies

Accounting Policies

SUMMARY

The Accounting Policies Policy defines approved Accounting Policies, and defines authority for making and amending Accounting Policies. This policy is supported by the Accounting Policies Register.

POLICY

1     PURPOSE

The purpose of this Policy, including its Appendix, is to:

  • define approved Accounting Policies; and
  • define authority for making and amending Accounting Policies.

2     BACKGROUND

Consistent application of approved Accounting Policies is essential to produce financial statements that are compliant with applicable legislation and relevant to users.

3     SCOPE

This Policy applies to all officers and directors, members, employees, consultants and contractors of Macquarie University and its Controlled Entities.

4     DEFINITIONS

Commonly defined terms are located in the University Glossary. The following definitions apply for the purpose of this Policy:

Accounting Policies: specific accounting rules governing the financial recognition, valuation, presentation and disclosure of financial transactions.

Accounting Policies Register: the register in Appendix 1 of this Policy.

Controlled Entities: as defined in the Controlled Entities Policy.

Group: Macquarie University and its Controlled Entities.

5     POLICY STATEMENT

  1. The University and all its controlled entities (the “Group”) must adhere to the Accounting Policies stipulated in Accounting Policies Register in the production of their individual and consolidated external financial accounts.
  2. Accounting Policies are made in accordance with:
    1. Currently applicable Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB);
    2. Public Finance and Audit Act, Public Finance and Audit Regulations, and the Higher Education Support Act; and
    3. mandatory requirements of the Financial Statement Guidelines for Australian Higher Education Providers, as issued by the Australian Government.
  3. Macquarie University is a not-for-profit entity and Accounting Policies are selected on that basis.
  4. Approved Accounting Policies are detailed in the Accounting Policies Register.
  5. Authority to make changes to the Accounting Policies Register is detailed in the table below:

Type of Accounting Policy change

Authority to approve change

Changes driven by new Accounting Standard issued by AASB where no choice of accounting in involved

Compliance with AASBs is mandatory, therefore no further ‘approval’ is required.

The Vice-President, Finance and Group Chief Financial Officer will:

  • advise the Audit and Risk Committee of   any material changes to financial statements well in advance of the   implementation date; and
  • approve changes to the Accounting Policies Register to comply with the new Accounting Standard.

Changes driven by ability to choose an option stipulated in an Accounting Standard

If the option available will have a material impact on the financial performance or presentation of the financial statements, Audit and Risk Committee approval is required, on recommendation from the Vice-President, Finance and Group Chief Financial Officer.

If the option is immaterial to the financial performance or presentation of the financial statements, the Vice-President, Financial and Group Chief Financial Officer has authority to approve changes to the Accounting Policies Register.

Clarification or refinement of narrative of an existing Accounting Policy that does not change the financial impact of the Policy.

The Vice-President, Finance and Group Chief Financial Officer may approve changes to the Accounting Policies Register.

6     RELEVANT LEGISLATION

  1. Australian Accounting Standards and Interpretations as issued by the Australian Accounting Standards Board
  2. Public Finance and Audit Act 1983
  3. Public Finance and Audit Regulations 2015
  4. Higher Education Support Act 2003

7     KEY RELATED DOCUMENTS

Appendix 1: Accounting Policies Register

8     NOTES

8.1

Contact Officer

Director – Financial Control and Treasury

8.2

Implementation Officer

Director – Financial Control and Treasury

8.3

Approval Authority / Authorities

Audit and Risk Committee

8.4

Date Approved

3 December 2018

8.5

Date of Commencement

3 December 2018

8.6

Date for Review

December 2021

8.7

Documents Superseded by this Policy

Nil

8.8

Amendment History

4 July 2019 - Amendment to position title: ‘Chief, Financial Officer’ updated to ‘Vice-President, Finance and Group Chief Financial Officer’ with effect from 6 June 2019.

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