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Accounting Policies Policy

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Section 1 - Purpose

(1) The purpose of this Policy, including Appendix 1: Accounting Policies Register, is to:

  1. define approved Accounting Policies; and
  2. define authority for making and amending Accounting Policies.

Background

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

Scope

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

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Section 2 - Policy

(4) The University and all its controlled entities (the “Group”) must adhere to the Accounting Policies stipulated in Appendix 1: Accounting Policies Register in the production of their individual and consolidated external financial accounts.

(5) 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 1983, Public Finance and Audit Regulations 2015, and the Higher Education Support Act 2003; and
  3. mandatory requirements of the Financial Statement Guidelines for Australian Higher Education Providers, as issued by the Australian Government.

(6) Macquarie University is a not-for-profit entity and Accounting Policies are selected on that basis.

(7) Approved Accounting Policies are detailed in the Appendix 1: Accounting Policies Register.

(8) Authority to make changes to the Appendix 1: 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 Resources will:
  1. advise the Audit and Risk Committee of any material changes to financial statements well in advance of the implementation date; and
  2. approve changes to the Appendix 1: 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 Resources.
If the option is immaterial to the financial performance or presentation of the financial statements, the Vice-President, Finance and Resources has authority to approve changes to the Appendix 1: 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 Resources may approve changes to the Appendix 1: Accounting Policies Register.
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Section 3 - Procedures

(9) Nil.

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Section 4 - Guidelines

(10) Nil.

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Section 5 - Definitions

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

  1. Accounting Policies: specific accounting rules governing the financial recognition, valuation, presentation and disclosure of financial transactions.
  2. Accounting Policies Register: the register in Appendix 1: Accounting Policies Register of this Policy.
  3. Controlled Entities: as defined in the Controlled Entities Policy.
  4. Group: Macquarie University and its Controlled Entities.