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Financial Performance

Financial Performance

This section analyses the financial performance of AMFRTF for the year ended 2020

1.1: Expenses

2020

2019

$

$

1.1A: Employee Benefits

Wages and salaries

165,147

168,732

Total employee benefits

165,147

168,732

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

1,028

366

Consultants expenses - website

2,475

7,304

Audit fees

20,240

21,540

Insurance expense

2,656

2,597

Printing

733

709

Computer expenses

10,288

1,185

Bank charges

987

1,739

Legal fees

0

10,164

Total suppliers

38,407

45,604

1.1C: Grants

Grants

2,885

3,843

Total grants

2,885

3,843

1.1D: Write-Down and Impairment of Assets

Impairment of assets

0

10,684

Total write-down and impairment of assets

0

10,684

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

336,060

428,934

Total losses from loan re-measurement

336,060

428,934

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.

1.2: Own-Source Income

2020

2019

$

$

1.2A: Loans Revenue

Members fund maintenance contribution

126,195

147,646

Total loans revenue

126,195

147,646

Accounting Policy

AMFRTF charges a maintance contribution to loan recipients 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 balance. Loan interest is then recognised based on the fair value of the loan (adjusted for the maintenance contribution) using the effective interest rate method.

1.2B: Interest

Investments

35,365

49,746

Loan interest

447,502

432,389

Bank accounts

3,789

2,972

Total interest

486,656

485,107

Accounting Policy

Interest revenue is recognised using the effective interest method.

1.2C: Resources Received Free of Charge

Salaries

165,147

168,732

Total resources received free of charge

165,147

168,732

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. Refer also to note 3.1.

1.2D: Other Income

Donations

24,401

1,295

Military Army Shop contributions

0

18,538

Miscellaneous

200

2,209

Total other income

24,601

22,042

Accounting Policy

Other income is recognised when AMFRTF gains control of the amount, this is usually when the cash is received in the case of donations and contributions.

1.2E: Reversal of write-downs and impairment

Reversal of impairment losses

10,800

0

Total reversals of previous asset write-downs and impairments

10,800

0

Statement of Comprehensive income