When you look at a statement of performance expectations for a Crown entity, you will see forecast financial statements for that year. These statements are made using generally accepted accounting practice. You can think of generally accepted accounting practice as a set of rules that accountants follow to make sure financial statements are accurate and fair.

The forecast financial statements must include important information, such as the assumptions that were made when creating the forecasts. This means the people making the forecasts have to explain what they based their predictions on. They also have to provide any extra information that is needed to get a clear picture of how the Crown entity is likely to perform financially.

You can find more information about how this rule was created by looking at the Crown Entities Amendment Act 2013, which added this requirement to the Crown Entities Act.