Model Financial Statements for a Tier 3 entity

Here is the 2024 update to our model financial statements for Tier 3 public sector reporting entities. This model has been prepared using the Reporting requirements for Tier 3 Public Sector Entities (Tier 3 (PS) standard). This standard supersedes the standard Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) (PBE SFR-A(PS)) and must be applied for reporting periods that begin on or after 1 April 2024. Because Tier 3 entities may choose to apply this standard for accounting periods ending after 15 June 2023, we have prepared this model performance report using the new standard. While this model is based on a small council-controlled organisation (CCO), other public sector PBEs applying the Tier 3 standard might also find it useful.

Main updates to the model

The main updates to the model since it was last published in 2019 are summarised below. The updates primarily incorporate the most significant differences between the new Tier 3 (PS) standard and the previous PBE SFR-A(PS). They also include the transition disclosures required by the Tier 3 (PS) standard.

Page number Note number Description of change
13, 16, 22 15 We have updated the accounting policy and financial statements to reflect the new revenue recognition model under the Tier 3 (PS) standard. Revenue can now be deferred when there is a “documented expectation” instead of when there is a “use or return condition”.
27 Appendix 1 In the Tier 3 (PS) standard entities are now able to revalue their property, plant and equipment, investment property, and publicly traded financial investments without needing to apply the applicable Tier 2 Standard. We provide an example of this in Appendix 1.
9 We have increased the number of minimum categories for presentation on the face of the statement of financial performance. The Tier 3 (PS) standard includes more categories, which are more clearly defined.
11, 24 18 The Tier 3 (PS) standard requires entities to disclose more information about restricted and discretionary reserves. The enhanced disclosures will increase transparency over the resources available to an entity and its future plans.