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1.2 Own-Source Revenue and Gains

2020

2019

$’000

$’000

Own-Source Revenue

1.2A: Rendering of Services

Rendering of services

5,408

8,683

Total sales of goods and rendering of services

5,408

8,683

Disaggregation of revenue from contracts with customers

Major product / service line:

Service delivery

5,408

8,683

5,408

8,683

Type of customer:

Australian Government entities (related parties)

4,784

7,914

State and Territory Governments

100

66

Non-government entities

524

703

5,408

8,683

Timing of transfer of goods and services:

Over time

4,673

7,905

Point in time

735

778

5,408

8,683

Accounting Policy

Revenue from the rendering of services is recognised when performance of specific service obligations, that are required and enforcebale under a contract or agreement made between the Commission and the customer, sufficiently allow the Commission to determine when they have been satisfied.

The principal activities from which the Commission generates its revenue include, service fees and direct cost recoveries from the supply of domestic and international human rights technical assistance programs, development of education resources and delivery of training services, provision of shared corporate services and accommodation, and interest earned on short-term bank deposits.

The Commission predominantly provides services to its customers under agreed terms and conditions contained in contracts or agreements made between the two parties. The nature, timing of satisfaction of performance obligations, and any significant payment terms are specified in the agreed terms and conditions, milestones and payment schedules.

The transaction price is the total amount of consideration to which the Commission expects to be entitled in exchange for transferring promised services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. No consideration from contracts is excluded in the transaction price. In the event that a change is required to any of the terms and conditions contained in a contract or agreement, including transaction price, a Contract Variation is agreed between the parties. The Commission has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Commission's performance completed to date under the original contract or subequent variations to the contract.

Where performance obligations are satisfied over time, revenue is recognised monthly in arrears following a reveiw costs incurred for the delivery of service obligations for the project(s) and activities related to the customer contract. Costs incurred are primarily recurring in nature, and the customer simultaneously receives and effectively gains control of the services as the Commission perfroms its obligations.

Revenue for perfomance obligations satisfied at a point in time is recognised in accordance with specified milestones for the performance of obligations in the contract, for example "acceptance of a final report by the customer". Customer contracts with performance obligations satisfied at a point in time are short-term and include agreed dates for completion of milestones and transferral of any deliverable(s), this also indicates when a customer obtains control of outputs from the promised services. Milestone completion is confirmed with relevant contract manager prior to revenue recognition.

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.

2020

2019

$’000

$’000

1.2B: Interest

Deposits

40

198

Total interest

40

198

2020

2019

$’000

$’000

1.2C: Other Revenue

Operating lease

Sub lease rental income

1,152

1,083

Total rental income

1,152

1,083

1.2D: Other Revenue

Resources received free of charge

Remuneration of auditors

46

46

Conference support

0

50

Other

0

7

Total other revenue

46

103

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.

Gains

1.2E: Other Gains

Gain on reduction of prior year provisions

0

32

Other - Sale of assets

1

1

Total other gains

1

33

Accounting Policy

Other Gains

Gains on the reduction of prior year provisions are recognised at their nominal value as gains, when, and only when, the original provision for services has been determined to no longer be required.

Sale of Assets

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

1.2F: Revenue from Government

Attorney-General's Department:

Corporate Commonwealth entity payment item

16,538

16,709

Total revenue from Government

16,538

16,709

Accounting Policy

Revenue from Government

Funding received from the Attorney-General's Department (received by the Commission as a corporate Commonwealth entity) is recognised as Revenue from Government unless the funding is in the nature of an equity injection or a loan.