Revenue from the sale of services is recognised when control has been transferred to the user. AFSA has assessed that the timing for transfer of its services is at a point in time for all its revenue streams.
The following is a description of principal activities from which the AFSA generates its revenue:
Operation of the Personal Property & Security Register (PPSR) - Revenue generated by AFSA is from the use of the PPSR such as registering a security or interest, amending an existing registration and searches of the register. A contract exists between the party applying for additions to, amendment of and searches of the register. The performance obligation is for the Registrar to action those requests by either registering the interest, amending the existing interest or providing the results of the search of the register. This performance obligation is satisfied once successful payment of the relevant fee has been made, therefore the revenue is recognised at this point in time.
The transaction price is determined by the Personal Property Securities (Fees) Determination 2005.
Personal Insolvency Reporting Service – Revenue generated by AFSA is from the use, by way of searches, of the National Personal Insolvency Index (NPII). The index is a publicly available and permanent electronic record of all personal insolvency proceedings in Australia.
Receivables for goods and services, 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.