Reserve Bank of Australia Annual Report – 1984 Financial Statements Accounting Policies

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS – 30 JUNE 1984

Note 1 Accounting policies

The financial statements have been based on the forms prescribed by the Reserve Bank regulations, supplemented by additional information including notes which form part of those statements. These notes state the basis of valuing major assets including, where applicable, the principles adopted in converting to Australian currency assets and liabilities denominated in foreign currencies. Except where otherwise stated, the statements are prepared on the historical cost basis of accounting. Income and expenditure are generally brought to account on an accrual basis.

A number of changes in accounting practices have operated from 1 July 1983 directed at bringing all realised gains and losses into the profit and loss account. Previously capital and windfall gains and losses were taken direct to Reserves and identified in the Notes to the accounts. Note 2 details the effect of these changes on earnings for the current and previous years.

The assets of the Reserve Bank Officers' Superannuation Fund are held by the Bank in accordance with the Reserve Bank (Officers' Superannuation) Rules made pursuant to Section 70 of the Reserve Bank Act, but are not included in these statements. The Bank's contributions to the Fund in accordance with the Rules are included in staff costs under aggregate operating earnings (Note 2).