5. Financial performance
(a) Revenue
|
June 2019 |
June 2018 |
|
|
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. |
Visit
https://www.transparency.gov.au/annual-reports/australian-naval-infrastructure-pty-ltd/reporting-year/2018-2019-57