Accounting Policy
Resources Received Free of Charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined, and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Revenue from the sale of goods is recognised when:
a) the risk and rewards of ownership have been transferred to the buyer;
b) the Army and Air Force Canteen Service retains no managerial involvement
or effective control over the goods;
c) the revenue and transaction costs incurred can be reliably measured; and
d) it is probable that the economic benefits associated with the transaction will flow to the
Army and Air Force Canteen Service.

Revenue from rendering of services is recognised by reference to licence agreements held with third party service contractors at the reporting date. The revenue is recognised when:
a) the amount of revenue and transaction costs incurred can be reliably measured; and
b) the probable economic benefits associated with the transaction will flow to the
Army and Air Force Canteen Service.

Receivables for goods, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Interest revenue is recognised using the effective interest method as set out in AASB 139.

Revenue from Government
Funding received or receivable from the Department of Defence is recognised as Revenue from
Government unless the funding is in the nature of an equity injection or a loan.