(1) Each agency
operating a trading and manufacturing
activity must prepare -
(a)
quarterly profit and loss statements;
and
(b)
a balance sheet on an annual basis.
(2)
The profit and loss statement and the
balance sheet must be prepared on an accrual
accounting basis. The profit and
loss statement should include all expenses that relate to the activity, and
where necessary, include estimates of -
(a)
overheads met by the department;
(b)
depreciation
of assets;
(c)
services provided below cost by other
agencies;
(d)
provision for doubtful debts;
(e)
provision for inventory
to be written-off.
(2)
The annual profit and loss statement
and balance sheet for 2006 and any subsequent year must be prepared and
submitted to the Auditor-General in a form
suitable for audit and inclusion in the agency’s annual report.
(Finance Instructions 2005 s(37))