This section analyses the financial performance of AMFRTF for the year ended 2020
1.1A: Employee Benefits
Wages and salaries
Total employee benefits
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.
Consultants expenses - website
1.1D: Write-Down and Impairment of Assets
Impairment of assets
Total write-down and impairment of assets
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
Total losses from loan re-measurement
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
1.2A: Loans Revenue
Members fund maintenance contribution
Total loans revenue
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.
Interest revenue is recognised using the effective interest method.
1.2C: Resources Received Free of Charge
Total 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. Refer also to note 3.1.
1.2D: Other Income
Military Army Shop contributions
Total other income
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
Total reversals of previous asset write-downs and impairments