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Financial Performance

Financial Performance

This section analyses the financial performance of AMFRTF for the year ended 2021

1.1: Expenses

2021

2020

$

$

1.1A: Employee benefits

Wages and salaries received free of charge

164,374

165,147

Total employee benefits

164,374

165,147

Accounting policy

AMFRTF receives resources free of charge in the form of staffing support from the Department of Defence. The associated revenue for resources received free of charge is recorded at note 1.2C.

1.1B: Suppliers

Goods and services supplied or rendered

General expenses

298

1,028

Contract labour

42,860

-

Consultants expenses - website

2,063

2,475

Audit fees

20,680

20,240

Insurance expense

2,973

2,656

Printing

787

733

Computer expenses

-

10,288

Bank charges

25

987

Total suppliers

69,686

38,407

1.1C: Grants

Hardship grants

13,222

2,885

Total grants

13,222

2,885

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.

1.1D: Losses from Loan Re-measurement

Losses from initial recognition of loans at fair value

217,065

336,060

Total losses from loan re-measurement

217,065

336,060

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

2021

2020

$

$

1.2A: Loans Revenue

Members fund maintenance contribution

94,483

126,195

Total loans revenue

94,483

126,195

Accounting Policy

AMFRTF charges a maintance contribution fee to loan recipients to cover administrative expenses and to support growth in the AMFRTF. These contribution fees 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

22,686

35,365

Loan interest

252,647

447,502

Bank accounts

3,666

3,789

Total interest

278,999

486,656

Accounting Policy

Interest revenue is recognised using the effective interest method.

1.2C: Resources Received Free of Charge

Salaries

164,374

165,147

Total resources received free of charge

164,374

165,147

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

79,156

24,401

Military Army Shop contributions

21,192

-

Miscellaneous

-

200

Total other income

100,348

24,601

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

4,836

10,800

Total reversals of previous asset write-downs and impairments

4,836

10,800