Objectives of the Independent Hospital Pricing Authority
The Independent Hospital Pricing Authority (IHPA) is a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

IHPA’s role and functions are set out in the National Health Reform Act 2011.

IHPA’s functions include, to:

• Determine the National Efficient Price and National Efficient Cost for public hospital services;
• Develop national classifications for Activity Based Funding; and
• Resolve disputes on cost-shifting and cross‑border issues.

IHPA is structured to meet the following outcome: promote improved efficiency in, and access to, public hospital services primarily through setting the national efficient price and levels of block funding for hospital activities.

The continued existence of the entity in its present form, and with its present programs, is dependent on Government policy and on continuing funding by Parliament for the entity’s administration and programs.

The basis of preparation
The financial statements are general purpose financial statements and are required by section 42 of the PGPA Act.

The financial statements have been prepared in accordance with the:

1. Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2018; and
2. Australian Accounting Standards and Interpretations — Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars, unless otherwise specified.

Significant changes affecting IHPA during 2018–19
No significant changes affecting IHPA have occurred in this reporting period.

New Australian Accounting Standards

Adoption of new Australian Accounting Standard requirements
IHPA has adopted all new, revised and amending standards and interpretations that were issued by the Australian Accounting Standards Board (AASB) prior to the sign‑off date and which are applicable to the current reporting period. The adoption of these standards and interpretations did not have a material effect, and are not expected to have a future material effect, on the financial statements

Future Accounting Standard requirements
The following new, revised and amending standards and interpretations were issued by the AASB prior to the signing of the statement by the Chief Executive Officer and Chief Financial Officer:

All other new, revised and amending standards or interpretations that have been issued by the AASB prior to sign-off date that are applicable to future reporting period(s) are not expected to have a future material financial impact on IHPA’s financial statements.

Significant accounting judgements and estimates
Except where specifically identified and disclosed, IHPA has determined that no accounting assumptions and estimates have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

Comparative figures
Comparative figures have been adjusted, where required, to conform to changes in presentation of the financial statements.

Taxation
IHPA is exempt from all forms of taxation, except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office.

Events after the reporting period
No events have occurred since the reporting date which have had a material impact on the financial statements.