Note 4 Revenue From Contracts With Customers
Note 4A: Revenue from contracts with customers
Sale of goods
Total sale of goods
Rendering of services
Total rendering of services
Total revenue from contracts with customers
Note 4B: Other Revenue
Marketing revenue and commissions
Resources received free of charge - Defence facilities
Total other revenue
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 entity 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.
Note 4C: Interest
Interest revenue is recognised using the effective interest method.
Note 4D: Revenue from Government
ATO non-repayable Job Keeper
Total revenue from Government
Revenue from Government
Revenue from Government for grant funding is recognised when AAFCANS obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to AAFCANS and the amount of the grant can be reliably measured. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant will be deferred until those conditions are satisfied.
In FY2021 AAFCANS recognised $927k in revenue received from the ATO. This related to Job Keeper payments received in FY2020 which AAFCANS were ultimately told by the ATO were ineligible claims. In FY2020 the cash was recognised upon receipt and a liability created for the potential repayment. During FY21 after submissions from AAFCANS, the ATO ruled that whilst AAFCANS were not eligible for these funds, they did not require repayment. Following AAFCANS policy, the revenue was recognised in FY2021 when we obtained control of the monies. These funds have been earmarked for capital projects that will benefit the welfare of both our team members and Defence members.