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Australian Competition and Consumer Commission Annual Report 2019-20

Notes to the financial statements

1. Financial Performance

This section analyses the financial performance of the Commission for the year ended 30 June 2020.

1.1 Expenses

1.1 Expenses	2020	2019
	$’000	$’000
1.1A: Employee benefits
Wages and salaries	121,287	102,364
Superannuation
Defined contribution plans	13,856	11,334
Defined benefit plans	7,294	6,979
Leave and other entitlements	17,147	15,537
Separation and redundancies	169	1,041
Other employee benefits	685	574
Total employee benefits	160,438	137,829

Accounting Policy Accounting policies for employee related expenses is included in the People and Relationships section.

	2020	2019
1.1B: Suppliers	$’000	$’000
Goods and services supplied or rendered
Legal expenses	31,600	25,939
Consultants and contracted services	32,003	23,358
Information technology and communications	12,243	10,568
Property operating expenses	4,953	4,331
Travel expenses	4,219	5,759
Employee related expenses	2,226	2,344
Information management expenses	2,695	2,995
Other administration expenses	2,618	3,448
Total goods and services supplied or rendered	92,557	78,742

Other suppliers
Operating lease rentals	0	9,867
Short-term leases	468	0
Workers compensation premiums	375	288
Total other suppliers	843	10,155
Total suppliers	93,400	88,897

Accounting Policy Right-of-use assets and lease liabilities are not recognised where: a) the lease has a term of 12 months or less; or b) the underlying value of each leased asset is less than $10,000. Where these criteria are met lease payments are recognised evenly over the lease term.

1.2 Own-Source Revenue

1.2 Own-Source Revenue	2020	2019
	$’000	$’000

Own-Source Revenue
International development funding	1,388	1,561
Reimbursement of legal costs	766	1,070
Secretariat Services - National Competition Council	851	850
Seminars	424	444
Sublease rental income	193	1,003
Finance income	84	0
Resources received free of charge (Remuneration of auditors)	115	115
Other revenue	1,111	385
Total sale of goods and rendering of services	4,932	5,428

Accounting Policy Revenue from rendering of services is recognised progressively as the services are provided to the customer where it can be demonstrated that: a) the customer simultaneously receives and consumes the services as they are provided; b) the services create an asset that the customer controls as the asset is created; or b) the services have no alternative use to the ACCC and an enforceable right to payment exists for work completed to date. The amount of revenue recognised is determined by reference to progress made in satisfying any obligations that exist. Where the criteria is not met to recognise revenue over time, revenue is recognised at a point in time once any performance obligations are satisfied and control has transferred to the customer. 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. Sublease income Where a sublease is classified as an operating lease, sublease rental income is recognised on a straight-line basis over the term of the lease. Where a sublease is classified as a finance lease, finance income is recognised over the lease term, based on a pattern reflecting a constant rate of return on the Commissions net investment in the lease.

2. Financial Position

This section analyses the Commission's assets used to conduct its operations and the operating liabilities incurred as a result.

Employee related information is disclosed in the People and Relationships section.

2.1 Financial Assets


2.1 Financial Assets	2020	2019
	$’000	$’000
Trade and other receivables
Goods and services	3,694	881
Appropriation receivable	50,700	57,642
GST receivable	2,001	1,814
Net investment in sublease	7,411	0
Accrued revenue	36	0
Total trade and other receivables (net)	63,842	60,337

Sublease Arrangements
The Commission has one sublease in Sydney that meets the criteria for recognition as an operating lease that is set to expire during the 2020-21 financial year. Remaining undiscounted lease payments in relation to this lease are $0.1m. The Commission has a sublease in Canberra that meets the criteria for recognition as a finance lease. Maturity analysis of the remaining payments is outlined below.

	2020	2019
Maturity analysis of finance lease receivables	$’000	$’000
Within 1 year	799	0
One to two years	849	0
Two to three years	1,028	0
Three to four years	1,068	0
Four to five years	1,109	0
More than 5 years	2,863	0
Total undiscounted lease payments receivable	7,716	0
Unearned finance income	(305)	0
Net investment in sublease	7,411	0


Accounting Policy Trade receivables are recognised where the right to consideration from the customer is unconditional, with only the passage of time required before payment is due. Accrued revenue is recognised where the Commission has provided services to the customer, but does not have the unconditional right to invoice the customer at reporting date. Trade and other receivables that are not provided at below market rates and held for: - the purpose of collecting contractual cash flows; and - receiving payments that are solely principal and interest are subsequently measured at amortised cost using the effective interest rate method, adjusted for any impairment allowance. Trade receivables are assessed for impairment at the end of each reporting period. The Commission applies the simplified approach for trade and other receivables by recognising impairment equal to the lifetime expected credit losses. Credit terms for goods and services are 30 days (2019: 30 days) Sublease receivables are recognised where the Commission has transferred substantially all the risks and rewards of the head lease to a sub lessee. Sublease receivables are recognised equal to the lease payments receivable under the sublease, discounted using the same rate applied when calculating the lease liability for the head lease.

2.2 Non-Financial Assets

2.2A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

	Leasehold improvements ¹	Plant and equipment	Computer software ²	Total
	$’000	$’000	$’000	$’000

As at 1 July 2019
Gross book value	18,312	5,198	11,688	35,198
Accumulated depreciation, amortisation and impairment	(2,419)	(1,759)	(6,064)	(10,242)
Total as at 1 July 2019	15,893	3,439	5,624	24,956
Recognition of right-of-use assets on adoption of AASB 16	59,312	0	0	59,312
Adjusted Total as at 1 July 2019	75,205	3,439	5,624	84,268

Additions
Purchase	5,524	1,477	1,111	8,112
Internally developed	0	0	14,026	14,026
Right-of-use assets	13,734	0	0	13,734
Depreciation (right-of-use assets)	(11,694)	0	0	(11,694)
Depreciation and amortisation (other assets)	(2,979)	(1,726)	(1,305)	(6,010)
Other movements of right-of-use assets	18	0	0	18
Disposals
Other disposals/write-downs (gross book value)	(258)	(50)	(1,289)	(1,597)
Other disposals/write-downs (accumulated depreciation)	258	37	1,284	1,579
Total as at 30 June 2020	79,808	3,177	19,451	102,436

Total as at 30 June 2020 represented by
Gross book value	96,641	6,625	25,536	128,802
Accumulated depreciation, amortisation and impairment	(16,833)	(3,448)	(6,085)	(26,366)
Total as at 30 June 2020	79,808	3,177	19,451	102,436

1. Right-of-use assets are disclosed as part of leasehold improvements. 2. The carrying amount of computer software includes $2.1m purchased software and $17.3m internally generated software. Leasehold improvements, plant and equipment may be sold or disposed in 2019-20 coinciding with the termination of some lease arrangements.

Accounting Policy Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Assets are initially measured at their fair value plus appropriate transaction costs. Asset recognition Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position. Right-of-use assets arising from leasing arrangements are capitalised on the commencement date based on the initial lease liability less any lease incentives received. These assets are accounted for as a separate asset class to corresponding assets owned outright, but are disclosed as part of leasehold improvements. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Commission where an obligation to restore the property to its original condition exists. These costs are included in the value of the Commission's leasehold improvements with a corresponding provision for restoration. The Commission's intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Revaluations Right-of-use assets continue to be carried at cost after initial recognition. All other property, plant and equipment is carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates for each class of depreciable asset are based on the following useful lives:
Asset class - 2020 and 2019 Leasehold improvements - Lease term Right-of-use assets - Lease term Furniture and fittings - 10 years Office equipment - 5 years Computer hardware - 3 to 5 years Computer software - 3 to 7 years

Accounting Policy (continued)

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

A write-down and impairment loss of $0.02m (2019:$0.43m) for non-financial assets was recognised in the Statement of Comprehensive Income.

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use.

Fair Value Measurement

The ACCC engaged the valuation services of Jones Lang LaSalle (JLL) to conduct an independent valuation of the tangible non-financial asset classes. An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Comprehensive valuations are carried out at least once every three years with the previous valuation of all tangible property, plant and equipment conducted at 30 June 2018.

The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows:

Physical depreciation and obsolescence - assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the Depreciated Replacement Cost approach. Under the Depreciated Replacement Cost approach the estimated cost to replace the asset is calculated and then adjusted to take into account physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration. For all leasehold improvement assets, the consumed economic benefit / asset obsolescence deduction is determined based on the term of the associated lease.

The ACCC's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. There have been no transfers during the year (2019: nil).

Contractual commitments for the acquisition of property, plant and equipment and intangible assets
The Commission has contractual commitments for the acquisition of leasehold improvements of $0.7m (2019: $0.5m), commitments for intangible assets of $2.1m (2019: $3.4m) and no commitments for property plant and equipment (2019: $0.1m).

	2020	2019
	$’000	$’000
2.2B: Other non-financial assets
Prepayments	1,627	1,785
Lease incentive asset	0	2,585
Leasehold rights	0	238
Total other non-financial assets	1,627	4,608

2.3 Payables

2.3 Payables	2020	2019
	$’000	$’000
2.3A: Suppliers
Trade creditors and accruals	17,309	12,198
Unearned revenue	345	840
Total suppliers	17,654	13,038

Accounting Policy Unearned revenue relates to money that has been received from customers in advance of the services being rendered. Accounting policies for revenue recognition are disclosed in Note 1.2.

	2020	2019
	$’000	$’000
2.3B: Other payables
Lease incentives	0	15,017
Operating lease payment increases	0	5,138
Wages and salaries	2,805	1,426
Superannuation	340	147
Salary sacrifice payable	168	209
Total other payables	3,313	21,937

2.4 Leases

2.4 Leases	2020	2019
	$’000	$’000
Interest Bearing Liabilities
Leases	75,076	0
Total interest bearing liabilities	75,076	0

Accounting Policy Liabilities arising from leasing arrangements are initially recognised at the present value of any fixed lease payments that are not paid at that date, discounted using either: - the interest rate implicit in the lease; or - zero coupon bond yields released quarterly by the Department of Finance (if the implicit rate cannot be readily determined).
Following initial recognition lease liabilities are increased for accrued interest and decreased for any lease payments made. Lease liabilities are also remeasured where there has been a change in the underlying lease payments or lease term. Any adjustment to the liability is first recognised as an adjustment to the corresponding right-of-use asset. If the adjustment would reduce the carrying value of the right-of-use asset below zero, the remaining adjustment is recognised in the Statement of Comprehensive Income.

2.5 Other Provisions

2.5 Other Provisions

	Provision for litigation	Provision for makegood	Total
	$’000	$’000	$’000

As at 1 July 2019	6,173	771	6,944
Additional provisions made	25,050	238	25,288
Amounts used	(5,621)	(224)	(5,845)
Amounts reversed	(552)	(11)	(563)
Total as at 30 June 2020	25,050	774	25,824

The Commission currently has 6 agreements (2019:7) for the leasing of premises which have provisions requiring it to restore the premises to their original condition at the conclusion of the lease.

3. Assets and Liabilities Administered on Behalf of Government

This section analyses the assets used to conduct operations and the operating liabilities the Commission does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting

3.1 Administered - Financial Assets

3.1 Administered - Financial Assets	2020	2019
	$’000	$’000
Trade and other receivables
Fines and costs	49,136	37,798
Total trade and other receivables (gross)	49,136	37,798
Less impairment allowance	(11,583)	(14,828)
Total trade and other receivables (net)	37,553	22,970

Credit terms for fines and costs were within 30 days or as stipulated by court judgements (2019: 30 days).

4. Funding

This section identifies the Commission's funding structure.

4.1 Appropriations


4.1A: Annual appropriations ('recoverable GST exclusive')	2020	2019
	$'000	$'000
Ordinary Annual Services	259,215	228,941
Capital Budget²	14,602	10,104
Equity Injections	1,100	1,100
Section 74 Receipts	14,621	7,444
Total Appropriation	289,538	247,589
Appropriation Applied (current and prior years)³	296,972	222,590
Variance	(7,434)	24,999
1. No portion of the 2019-20 annual appropriations have been withheld under section 51 of the PGPA Act and quarantined for administrative purposes. 2. Departmental Capital Budgets are appropriated through Appropriation Acts (No.1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. 3. Appropriation applied includes use of both current and prior year appropriation funding. The variance in 2019-20 primarily relates to a use of prior year capital appropriations for current year acquisitions.

4.1B: Unspent annual appropriations ('recoverable GST exclusive')
	2020	2019
Departmental	$'000	$'000
Appropriation Act (No. 4) 2017-18	0	10,000
Appropriation Act (No. 1) 2018-19	0	20,014
Appropriation Act (No. 2) 2018-19	0	1,100
Appropriation Act (No. 3) 2018-19	990	26,528
Supply Act (No. 2) 2019-20	459	0
Appropriation Act (No. 1) 2019-20	23,362	0
Appropriation Act (No. 2) 2019-20	641	0
Appropriation Act (No. 3) 2019-20	25,248	0
Total Departmental	50,700	57,642
In addition to the unspent appropriations disclosed above, at 30 June 2020 the Commission had cash and cash equivalents of $1.164m (2019: $1.656m).

4.1C: Special appropriations - Administered ('recoverable GST exclusive')
		Appropriation applied
		2020	2019
		$'000	$'000
Authority	PGPA Act, 2013 s.77	8	2
Type	Refund
Purpose	To provide for an appropriation where an Act or other law permits repayment of an amount received by the Commonwealth and the Finance Minister is satisfied that, apart from this section, there is no specific appropriation for the repayment.

5. People and Relationships

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

5.1 Employee Provisions

Employee Provisions	2020	2019
Employee Provisions	$'000	$'000
Leave	48,227	39,480
Separations and redundancies	0	849
Total employee provisions	48,227	40,329
Accounting Policy Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts. 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 Leave The liability for employee benefits includes provision for annual leave and long service leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Commission's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The leave liabilities have been determined by reference to the work of an actuary as at 30 June 2018. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Separation and Redundancy The Commission recognises a provision for separation and redundancies when it has committed to the terminations and having informed those employees affected that the terminations will be carried out. Superannuation The Commission'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 and other superannuation funds are defined contribution schemes. 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 Commission makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Commission 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.

5.2 Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Commission, directly or indirectly, including any director (whether executive or otherwise) of the Commission. The Commission assessed key management personnel to be the members of the Corporate Governance Board, Chief Operating Officer and Chief Finance Officer.
	2020	2019
	$’000	$’000
Short-term employee benefits	4,864	4,379
Post-employment benefits	656	580
Other long-term employee benefits	115	109
Total key management personnel remuneration expenses	5,635	5,068
The total number of key management personnel that are included in the above table is 12 (2019: 10).
The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the Commission.

6. Managing Uncertainties

This section analyses how the Commission manages financial risks within its operating environment.

6.1 Contingent Assets and Liabilities

As at 30 June 2020, the Commission has matters before the Courts alleging breaches of the Competition and Consumer Act 2010. These cases are at various stages of completion.

Departmental

In the event of an unfavourable judgement by the Courts, the Commission stands to be liable for court costs. If it had been possible to estimate the amounts of eventual payments these would have been reported as departmental liabilities. The Commission has no quantifiable contingent liabilities arising from court action to report.

The Commission is in possession of a bank guarantee in the amount of $0.1m. This bank guarantee is a contingent asset which would be exercised in the event of a default by a sublease. It is not expected that this bank guarantee will be exercised and it is due to expire 30 September 2021.

Administered

In the event of a favourable judgement by the Courts, the Commission stands to gain by way of penalties or costs awarded. Due to the inherent uncertainty of litigation it was not possible to estimate the value of case outcomes at 30 June 2020.

However, prior to these statements being authorised court judgements have demonstrated that the Commission has quantifiable administered contingent assets totalling $8.7m (2019: $0.7 million).

Accounting Policy

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

7. Other Information

7.1 Budgetary Reporting

Explanations of major variances between the actual amounts presented in the financial statements and the corresponding original budget amounts.
Departmental Activities
Operational Funding As part of 2019-20 Portfolio Additional Estimates the Commission received additional operating funding of $25.3m compared to the 2019-20 Budget. The additional resourcing has been used to deliver on the Commission's strategic priorities, as set out in the ACCC Strategic Direction Statement (Portfolio Budget Statements) and the Commission's Corporate Plan. After accounting for differences arising from application the new leasing standard (discussed further below), the additional funding has resulted in a greater use of employees and suppliers than had been anticipated at the time of establishing the 2019-20 Budget. The increased staffing levels and a decrease in the Commonwealth bond rate (used to discount leave provisions) has also resulted in a higher employee provision compared to budget. An amount of $10.0m of GST refunds has been recognised as Section 74 receipts transferred to the OPA and correspondingly drawn down as appropriation funding. Consistent with previous years, GST received from the Australian Taxation Office and swept to the OPA has not been reflected in the budgeted amounts due to its nil impact on total operating cash flows. *Affected line items:* Employee Benefits, Supplier Expenses, Revenue fromm Government, Employee Provisions, Cash Received - Appropriations, Cash Used - Suppliers, Cash Used - Employees, Cash Used - Section 74 Receipts Transferred to the OPA.
Capital Funding As part of 2019-20 Portfolio Additional Estimates the Commission received additional capital funding of $9.9m compared to the 2019-20 Budget. The additional resourcing and unspent prior year capital appropriations have been leveraged in 2019-20 to assist the Commission in delivering on a number of initiatives, including implementation of the National Consumer Data Right. *Affected Line Items:*Contributed Equity, Purchase of Non-financial Assets, Non-financial Assets.
Litigation Contingency Funding The Litigation Contingency Fund (LCF) is used to strengthen the Commission's capability to deal with major litigation and ensure sufficient reserves are available to fund legal settlements. Additional funding added to the LCF is recognised as contributed equity when received. Settlement of litigation is recognised as an expense in the Statement of Comprehensive Income once the settlement amount can be reliably estimated. Due to the complexity and uncertainty in predicting the future outcome of litigation it is not possible to accurately budget for litigation settlements. *Affected Line Items:* Contributed Equity, Settlement of Litigation, Cash Used - Settlement of Litigation, Cash Received - Contributed Equity
Appropriation Receivable The appropriation receivable represents undrawn appropriations at 30 June and is impacted on the timing of payments. The higher than budgeted supplier payable balance has reduced cash payments made during the reporting period and has resulted in a higher appropriation receivable balance as at 30 June 2020. Unused appropriations will be drawn in 2020-21 to settle outstanding liabilities and to make payments from the LCF. *Affected Line Items:* Trade and other receivables, Supplier payables

Application of AASB 16 Leases
The 2019-20 Budget was prepared accounting for lease transactions in accordance with AASB 117 Leases. On 1 July 2019 the Commission was required to apply the new requirements of AASB 16 Leases. The application of AASB 16 has resulted in the following major variances between actual results and amounts reported in the 2019-20 Budget:
–	The 2019-20 Budget included approximately $9.4m of lease expenses as part of supplier expenses within the Statement of Comprehensive Income. Lease expenses are no longer included in supplier expenses and are now disclosed as depreciation expense on right-of-use assets and interest expense on lease liabilities within the financial statements.
–	As at 30 June 2020 the Commission disclosed right-of-use assets of $61.4m (within leasehold improvements) and sublease receivables of $7.4m (within trade and other receivables). These amounts are not included in the 2019-20 Budget.
–	As at 30 June 2020 the Commission disclosed lease liabilities of $75.1m in accordance with AASB 16. This amount was not included in the 2019-20 Budget.
–	Other payables and other non-financial assets are lower than the 2019-20 Budget due to the derecognition of lease balances no longer reported under AASB 16.
–	Lease payments are now disclosed as payment of interest (operating activities) and principal repayments on lease liabilities (financing activities). In the 2019-20 Budget lease payments were included in supplier payments (operating activities).
–	An adjustment of $18.5m was required to opening equity to eliminate balances under AASB 117 and recognise new lease balances under AASB 16.
Further details on the application of AASB 16 can be found in the overview section.
*Affected Line Items:* Supplier Expenses, Depreciation Expenses, Trade Receivables, Other Non-financial Assets, Leasehold Improvements, Other Payables, Lease Liabilities, Other Provisions, Cash Used - Principal Payments on Lease Liabilities, Cash Used - Interest Payment on Lease Liabilities, Cash Received - Interest, Cash Received - Principal Receipts on Sublease Receivables
Administered Activities The Commission uses a historical average to budget for fees and fines revenue due to the complexity and uncertainty in predicting the future outcome of litigation. The resulting variance between budget and actual fees and fines is a favourable $163.7m in 2019-20. However, the budget did not anticipate impairments for overdue debtor balances of $26.4m resulting in a final administered outcome that is different to the budget by $137.3m. The final receivables balance is difficult to estimate as it is the balance as at the reporting date which is a factor of the penalties and court costs imposed as well as debtors' ability to pay and the timing of their payments. The receivable balance is higher at the end of the financial year in line with increased fees and fines compared to budgeted amounts.
*Affected Line Items:* Fees and fines revenue, Impairment of fees and fines, Trade and other receivables.

7.2 Aggregate Assets and Liabilities

Departmental	2020 $'000	2019 $'000
Departmental	2020 $'000	2019 $'000
Assets expected to be recovered in:
No more than 12 months	59,740	65,809
More than 12 months	109,329	25,748
Total assets	169,069	91,557
Liabilities expected to be settled in:
No more than 12 months	71,915	36,542
More than 12 months	98,179	48,780
Total liabilities	170,094	85,322

Administered	2020 $'000	2019 $'000
Administered	2020 $'000	2019 $'000
Assets expected to be recovered in:
No more than 12 months	37,182	22,085
More than 12 months	871	885
Total assets	38,053	22,970

7.3 Events After the Reporting Period