1.1 Objectives of the Army and Air Force Canteen Service
The Army and Air Force Canteen Service is an Australian Government controlled entity. It is a not-for-profit entity. The objective and structure of the Army and Air Force Canteen Service is to provide goods and services to or for the entertainment and recreation of designated members of the ‘Defence family’.

The continued existence of the Army and Air Force Canteen Service in its present form and with its present program is dependent upon the Chiefs of Army and Air Force requiring the provision of canteen services on specified bases and providing space to operate the canteens free of charge.

1.2 Basis of Preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.
The financial statements have been prepared in accordance with:
a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR)
for reporting periods ending on or after 1 July 2015; and
b) Australian Accounting Standards and Interpretations 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.

1.3 Significant Accounting Judgements and Estimates
In the process of applying the accounting policies the entity has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:
Other issues including, depreciation and amortisation, impairment, long service leave and
calculation of licensed facilities on base have estimates in their calculations. Please refer to their individual note disclosures.

1.4 Taxation
The Army and Air Force Canteen Service is exempt from all forms of taxation except Fringe
Benefits Tax (FBT), Wine Equalisation Tax (WET) and the Goods and Services Tax (GST).
Revenues, expenses, liabilities and assets are recognised net of GST except:
a) Where the amount of GST incurred is not recoverable from the Australian Taxation office;
and
b) For receivables and payables.

1.5 New Australian Accounting Standards
No accounting standard has been adopted earlier than the application date as stated in the standard.

None of the new standards, revised standards, interpretations and amendments to standards that were issued prior to the signing of the Statement by Directors, Managing Director and Head of Finance and Commercial and were applicable to the current reporting period had a material effect on the Corporation’s financial statements.

Future Australian Accounting Standard Requirements

The following new standard, revised standards, interpretations and amendments to standards that were issued by the Australian Accounting Standards Board prior to the signing of the Statement of Directors, Managing Director and Head of Finance and Commercial are expected to have a material impact on the Corporation’s financial statements for future reporting periods.