• Deposits held – this category includes currency on issue (i.e. coins on issue from the Commonwealth Treasury and notes on issue from the Reserve Bank of Australia), which are liabilities of the government. Also included are holdings of cash balances or deposits from other public sector or private sector bodies, including trust accounts held on behalf of other public sector or private bodies. Excluded are employee superannuation trust fund balances or any trust balances held to reduce employee entitlement liability.

The statement of stocks and flows records changes in shares and other contributed capital arising from transactions, revaluations, and other volume changes

• Proceeds from advances – this item includes loans and other repayable funds received from government authorities for policy purposes rather than income generation or liquidity management purposes. The item excludes loans from non-government sources and grants and non-repayable funds received.

The statement of stocks and flows records changes in shares and other contributed capital arising from transactions, revaluations, and other volume changes

• Borrowing – this item refers to liabilities, other than advances, created through direct agreements with lenders, the sale of securities and acquisition of finance leases. The item includes: (i) finance leases, which are lease arrangements in which most of the risks and benefits of ownership rest with the lessee (all leases defined as finance leases under accounting standard AAS 17 are included as well as others where the economic effect is the same as a finance lease); (ii) loans, including bank overdrafts; long and short term loans in both Australian currency and foreign currency; credit foncier loans; and deferred payment schemes (re-purchase agreements); and (iii) securities, including promissory notes; bills of exchange; certificates of deposit; fixed term deposits; treasury notes and bonds; debentures; long term notes; net value of swaps and other derivatives in a net liability position.

The statement of stocks and flows records changes in shares and other contributed capital arising from transactions, revaluations, and other volume changes

• Accounts payable – this item includes short and long term trade debt and accounts payable, accounts and interest payable, and prepayments received.

The statement of stocks and flows records changes in shares and other contributed capital arising from transactions, revaluations, and other volume changes

• Provisions that are in the nature of liabilities – this item excludes provisions which are in the nature of reserves (e.g. provision for future losses and provision for self-insurance) and which do not meet the definition of liabilities. The item includes: (i) provisions for unfunded superannuation; (ii) provisions for other employee entitlements such as sick leave paid on resignation or retirement, recreation leave, long service leave, workers’ compensation (where benefits are paid by an employer and not a separate insurer), and accrued wages and salaries; and (iii) provisions other than those for employee entitlements, such as provisions for income tax and dividends if the underlying amounts are liabilities of the entity. The item excludes provisions for bad debts.

The statement of stocks and flows records changes in shares and other contributed capital arising from transactions, revaluations, and other volume changes

• Other liabilities – this item covers all liabilities not elsewhere classifiable.

2.185. The statement of stocks and flows records the results of transactions, revaluations and other volume changes on the value of each of the categories of liabilities described above at the end of the accounting period. Contracting of liabilities includes acceptance of deposits, receipt of advances from other government units, borrowing on financial markets and issuing securities such as bonds and notes. Revaluations of liabilities occur most often for instruments, such as securities, that are traded on financial markets or are subject to exchange rate fluctuations. Changes to liabilities from events other than transactions and revaluations are rare. It should be noted that cancellation of debt by mutual agreement between creditor and debtor is treated as a capital transfer between creditor and debtor and is not recorded as an other volume change in liabilities.

2.186. This item is relevant only for public corporations because general government units are not owned by other units and cannot have any form of equity. The item represents the market value of shares and other contributed capital and is grouped with liabilities in the analytical framework because it represents a financial claim on the assets of public corporations. Together with the value of liabilities best payday loans Walbridge OH, it is deducted from assets in the derivation of net worth. Transactions that increase shares and other capital include share issues and other receipts of capital contributions from owners. Transactions that decrease shares and other contributed capital include share redemptions in which a corporation buys back shares from shareholders (payments of dividends and other income transfers are recorded as expenses). The main instances of revaluations that affect shares and other contributed capital are changes in the market value of listed public corporation’s shares on the share market. Other volume changes that affect shares and other contributed capital are rare and are likely to be restricted to reclassifications.