This section analyses the financial performance of the Australian Bureau of Statistics for the year ended 2019.

1.1 Expenses

Accounting Policy

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of the reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the ABS is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will apply at the time the leave is taken, plus the ABS’s employer superannuation contribution rates and applicable on-costs, to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of the Australian Government Actuary as at 30 June 2019. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

An independent actuarial valuation of employee benefit liabilities is conducted every three years. The last review was performed by the Australian Government Actuary in June 2017.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The ABS recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The ABS’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other superannuation funds held outside the Australian Government.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The ABS makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government, and accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

Accounting Policy

Leases

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1. This amount relates to the impairment provision for some Internally Generated Software (IGSW) assets reflecting the uncertainty around the project re-commencement.

2. This amount represents the disposal of a number of IGSW assets due to technological obsolescence.

1.2 Own-Source Revenue and Gains

Accounting Policy

Rendering of services include revenue from the provision of statistical services and products.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
• the probable economic benefits associated with the transaction will flow to the ABS.

The stage of completion of contracts at the reporting date is determined by reference to the proportion of costs incurred to date when compared to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due, less any impairment allowance amount. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Refer to Note 2.1A for further detail.

1. This amount relates to the services received free of charge from the Australian National Audit Office financial statements audit, external board members, and staff secondment from the Australian Taxation Office, and Stats NZ.

2. In 2017-18 the ABS received a Comcare premium reduction and a refund of prior year lease payments.

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.

Other revenue

Other revenue includes all miscellaneous revenue such as various refunds including Comcare premium adjustments.

1.This amount includes gains on sale of assets and other gains.

Accounting Policy

Sale of assets

Gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.