STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
Retained earnings | Asset revaluation reserve | TOTAL EQUITY | |||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | Original Budget | |
$000 | $000 | $000 | $000 | $000 | $000 | $000 | |
Opening balance | 10,930 | 10,947 | 175 | 175 | 11,105 | 11,122 | 11,122 |
Adjustment on initial application of AASB 16 | 663 | - | - | - | 663 | - | - |
Adjusted opening balance | 11,593 | 10,947 | 175 | 175 | 11,768 | 11,122 | 11,122 |
Comprehensive income | |||||||
Deficit for the period | (305) | (17) | - | - | (305) | (17) | - |
Other comprehensive income | - | - | 910 | - | 910 | - | - |
Transfers between equity components | 16 | - | (16) | - | - | - | - |
Total comprehensive income | (289) | (17) | 894 | - | 605 | (17) | - |
Closing balance as at 30 June | 11,304 | 10,930 | 1,069 | 175 | 12,373 | 11,105 | 11,122 |
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary
All variances above $150k and 2% of the relevant category are considered significant and explained below:
Adjustment on initial application of AASB 16: was higher than budget by $663k due to the implementation of AASB 16 Leases which transferred the lease incentive liability to retained earnings.
Deficit for the period: was $305k and is primarily due to the implementation of AASB 16 Leases which replaces rent expense and the reduction of the lease incentive liability with depreciation and finance costs, resulting in a higher total expense of $255k.
Other comprehensive income: was higher than budget by $910k due to the revaluation of fixed assets.
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