The FRC monitors financial reporting and auditing issues relevant to the public sector through its FRC Public Sector Advisory Group (PSAG) (formerly the Public Sector Working Group), comprising of members of the FRC and the public sector.
The PSAG was established in 2019 following the release of AASB Research Report No 6: Financial Reporting Requirements Applicable to Public Sector Entities and AASB Discussion Paper: Improving Financial Reporting for Australian Public Sector, which found that financial reporting in the public sector appears to be more complex than necessary to meet user needs.
In 2020‑21, the PSAG oversaw the independent post‑implementation review of AASB 1049 Whole of Government and General Government Financial Sector Reporting, which was completed in late 2021.
Other work to date
The PSAG also:
- consulted with stakeholders regarding the potential for a third tier of reporting requirements for public sector entities and provided input to the FRC and AASB on a possible framework and design
- monitors domestic and international developments regarding public sector sustainability reporting and sustainability‑related financial disclosures and provided feedback and input to various governing bodies.
2023 focus area
Areas of focus for the PSAG for 2023 include:
- talent attraction and retention in the public sector
- public sector sustainability reporting
- audit quality and audit themes in the public sector
- simplified financial reporting for the public sector.