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5. Financial performance

(a) Revenue

June 2019
$’000

June 2018
$’000

Revenue from continuing operations

Facilities and services charges

9,228

17,831

Lease income

10,435

322

Total

19,663

18,153

Revenue recognition

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaced AASB 118 Revenue, AASB 111 Construction Contracts and related interpretations. Under AASB 15, revenue is recognised when a customer obtains control of the goods or services. Determining the timing of the transfer of control – at a point in time or over time – requires judgement.

The following table summarises the Company’s approach to each relevant revenue stream:

Revenue stream

Recognition

Applicable accounting standard

Facilities and services charges

The charge is made up of a capital charge, depreciation charge and priority access fee. In the prior year the capital and depreciation charges related to ASC Pty Ltd (ASC) and ASC AWD Shipbuilder Pty Ltd (AWD). This arrangement continued for invoicing to ASC; however, a new licence was signed with AWD and this income has now been captured under AASB 117 Leases.

AASB 15

Capital charge

Revenue is recognised based on a percentage of the depreciated historic cost of critical infrastructure assets that have not been funded by a program or project.

Depreciation charge

Revenue is recognised based on the depreciation of critical infrastructure assets provided by the Company.

Priority access fee

Annual priority access fee revenue is recognised on a straight-line basis over the period to which the charge relates.

Lease income

Annual commercial property rental charges are recognised on a straight-line basis over the period to which the charge relates.

New lease agreements were signed with AWD and Luerssen with effective dates, for purposes of access charges, of 1 July 2018. These leases are classified as operating leases and the income has been accounted for under AASB 117.

AASB 117

(b) Other income and expense items

Items included in profit before tax

June 2019

June 2018

$’000

$’000

Depreciation

Buildings

14,735

11,747

Plant and equipment

6,237

3,720

20,972

15,467

Finance costs

Net finance income / (expense)

331

(189)

Accounting Policy

Item

Policy

Depreciation

Accounting policies for depreciation and amortisation are described in Note 8(a).

Net finance income / (expense)

Net finance income / (expense) incurred during the financial year are taken to profit and loss.