Register / AASB 1049 Whole of Government and General Government Sector Financial Reporting / AASB 1049 paragraph 14(f)
Classify dividends and interest in the government cash flow statement
The optional treatment description is rewritten. Dividends paid are financing cash flows. A public sector not-for-profit other than a higher education provider may put interest paid either in financing or in operating, and may put receipts of interest and dividends either in investing or in operating. The ABS GFS format drives the operating classification.
Why the paragraph exists
The paragraph reconciles the AASB 107 permission with the GFS presentation, which is the format a government actually publishes.
In practice
Classify dividends paid as financing and show the interest lines under the GFS format. The paragraph explains how the AASB 107 permission is limited by paragraph 13.
Keep the GFS basis note with the statement. A reader comparing the accounting statement and the GFS statement needs to see why the classifications differ.
The mistake to avoid
The common mistake is to treat the paragraph as a free choice for every government entity, when it describes an optional treatment that paragraph 13 limits.
Who it binds
A government applying AASB 1049, including entities in the PNFC and PFC sectors within the whole of government.
What to do before the date
- Confirm the entity falls in this group: Government (AASB 1049).
- Put the requirement into the financial statements preparation plan: classify dividends and interest in the government cash flow statement.
- Open a workpaper for the first evidence item: The published government cash flow statements with dividends and interest classifications identified.
Evidence an auditor will ask for
Dates
| Date | What it means | Applies to |
|---|---|---|
| 2027-12-31 | The instrument commences for this paragraph | government |
| 2028-01-01 | First annual periods beginning on or after this date apply the Standard | government |
Commencement and application are separate tests.
Cross-references
- AASB 1049 paragraph 13
- AASB 107 paragraphs 33A and Aus34D.1
- ABS GFS Manual
Record note
The paragraph describes an optional treatment that paragraph 13 limits. It does not create a new free choice.
Questions
What does AASB 1049 paragraph 14(f) require in practice?
Classify dividends paid as financing and show the interest lines under the GFS format. The paragraph explains how the AASB 107 permission is limited by paragraph 13.
What is the common mistake under AASB 1049 paragraph 14(f)?
The common mistake is to treat the paragraph as a free choice for every government entity, when it describes an optional treatment that paragraph 13 limits.
What evidence should be kept?
At least: The published government cash flow statements with dividends and interest classifications identified.; The policy note that explains the GFS basis and the interaction with AASB 107 paragraph Aus34D.1. The kit carries each one as a row with an owner column to complete.
Source
This page is our statement of the paragraph, cited so you can check it. Read F2026L01162 on legislation.gov.au.
Source pointer: AASB 1049 paragraph 14(f). Record retrieved 2026-10-20.