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Financial Performance

Financial Performance

This section analyses the financial performance of AMFRTF for the year ended 2019

1.1: Expenses

2019

2018

$

$

1.1A: Employee Benefits

Wages and salaries

168,732

143,273

Total employee benefits

168,732

143,273

Accounting Policy

AMFRTF receives resources free of charge in the form of staffing suport from the Department of Defence. These amounts are recorded within wages and salaries expenses and the associated revenue is recorded at note 1.2C.

1.1B: Suppliers

General expenses

366

865

Consultants expenses - website

7,304

15,166

Audit fees

21,540

21,591

Insurance expense

2,597

2,404

Printing

709

2,376

Computer expenses

1,185

-

Bank charges

1,739

1,620

Legal fees

10,164

-

Total suppliers

45,604

44,022

1.1C: Grants

Grants

3,843

22,419

Total grants

3,843

22,419

1.1D: Write-Down and Impairment of Assets

Impairment of assets

10,684

6,971

Total write-down and impairment of assets

10,684

6,971

Accounting Policy

Competitive Neutrality

The AMFRTF was established to provide benefits to eligible persons and does not carry out Government business activities on a commercial basis nor operate in a competitive, or potentially competitive, environment. Therefore it is not required to make Australian Income Tax Equivalent payments to the Government.

Bad and Doubtful Debts

Bad debts are provided for or written off during the period in which they are identified according to the impairment requirements of AASB 9 Financial Instruments.

1.1E: Losses from Loan Re-measurement

Losses from initial recognition of loans at fair value

428,934

423,432

Total losses from loan re-measurement

428,934

423,432

Accounting Policy

Loans issued by the AMFRTF are classified as financial assets and initially measured at their fair value. The difference between the notional value of a loan and its fair value on the date of issue is recognised as a loss in the Income Statement. Subsequently, loans are carried at amortised cost. Refer also to note 2.1B.

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1.2: Own-Source Revenue

2019

2018

$

$

Own-Source-Revenue

1.2A: Sale of Goods and Rendering of Services

Members fund maintenance contribution

147,646

141,781

Bad and doubtful debt recoveries

-

-

Military Army Shop contributions

18,538

13,141

Total sale of goods and rendering of services

166,184

154,922

Accounting Policy

Revenue from the sale of goods is recognised when:
a) the risks and rewards of ownership have been transferred to the buyer;
b) the AMFRTF retains no managerial involvement or effective control over the goods;
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear 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 account. Impairment of any debts is reviewed at end of the reporting period.

Other Types of revenue

A charge is recovered from loan applicants to help defray administrative expenses and to provide growth in the AMFRTF. These member contributions are recognised as income in the year the loan is made and form part of the outstanding loan amount.

1.2B: Interest

Investments

49,746

43,119

Loan interest

432,389

408,610

Bank accounts

2,972

5,009

Total interest

485,107

456,738

Accounting Policy

Interest revenue is recognised using the effective interest method.

1.2C: Resources Received Free of Charge

Salaries

168,732

132,489

Total resources received free of charge

168,732

132,489

Accounting Policy

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.

1.2D: Other Revenue

Donations

1,295

275,933

Miscellaneous

2,209

544

Total Other Revenue

3,504

276,477