This section details the financial performance of ANSTO.

Accounting Policy

Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefits are measured as the total net present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The provision for employee entitlements encompasses annual leave and long service leave that ANSTO has a present obligation to pay resulting from employee services provided up to reporting date. The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied when leave is taken, including employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The Enterprise Agreement provides under the heading General Leave for an employee entitlement which combines sick leave, carer's leave and leave for 'other' prescribed purposes. No provision has been made for general leave as all such leave is 'non-vesting’.

The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. ANSTO recognises a provision for termination when it has developed a detailed formal plan for the termination and has informed those employees affected that it will carry out the termination.

Superannuation

ANSTO’s staff are members of the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap), or other superannuation funds held outside of the Australian Government that provide retirement, death and disability benefits to employees. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

ANSTO makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. ANSTO accounts for contributions as if they are contributions to a defined contribution scheme.

The staff of the subsidiaries are members of various defined contribution schemes and receive the Superannuation Contribution Charge.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final week of the year.

ANSTO is exempt from income tax. Unbooked deferred tax assets in relation to un-recouped tax losses including timing difference in ANSTO Inc., is $574,727 (2019: $718,299) and ANM is $54,523,570 (2019: $45,159,363). The total deferred tax assets recognised as at 30 June 2020 in relation to controlled entities are: $283,178 (2019: $518,188), from PETTECH Solutions Pty Ltd at $283,178 (2019: $518,188), ANM at $nil (2019: $nil) and ANSTO Inc. at $nil (2019: $nil).

Accounting Policy

ANSTO is exempt from all forms of Australian taxation except fringe benefits tax (FBT) and the goods and services tax (GST). ANSTO is not exempt from any foreign taxation laws relative to its overseas operations.

Revenues, expenses, assets and liabilities are recognised net of GST except:

• where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
• for receivables and payables.

Subsidiaries

ANSTO's subsidiaries are subject to normal taxation.

ANSTO Inc. is a USA company and is subject to US tax laws. No deferred tax asset has been recognised at 30 June 2020 (2019: $nil) in relation to ANSTO Inc. as the directors do not believe it is probable that sufficient profits will be generated to utilise the tax losses.

No deferred tax asset has been recognised at 30 June 2020 (2019: $nil) in relation to ANM as the directors do not believe it is probable that sufficient profits will be generated to utilise the tax losses in a reasonable time frame.

In respect of the subsidiaries, current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by reporting date.

Deferred income tax is provided on all temporary differences at reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

The PETTECH Solutions Pty Ltd directors believe it is probable that sufficient profits will be generated to utilise the tax losses available.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available in the foreseeable future against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised, except:

• when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at reporting date. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

1.2 Revenue

Accounting Policy

Sales of goods and rendering of services

ANSTO recognises revenue for the transfer of promised goods and services to customers in an amount that reflects the consideration expected for the exchange of those goods and services.

The following is a description of the principal activities, and their respective revenue recognition treatment, from which ANSTO generates its revenue:

• Revenue from radioisotope sales is recognised once the products are dispatched from ANSTO’s premises;
• Revenue for service & contract research is recognised upon completion of the service and research to be provided;
• Silicon irradiation revenue is recognised once the product has undergone the irradiation process;
• Revenue from land management is recognised in the period the tenancy relates too; and
• Revenue from training courses is recognised in the period the training course held.

In all revenue streams for contracts with customers there are no contractual performance obligations that trigger revenue recognition. This removes the judgemental aspect of the timing and amount of revenue to be recognised. As a result the implementation of AASB 15 has had no financial impact to ANSTO.

Receivables for goods and services are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at reporting date. Allowance is made when collectability of the debt is no longer probable.

Grant revenue

Government grants and funding are recognised when ANSTO obtains control over the contribution. There are two types of grants being reciprocal grants and non-reciprocal grants.

For reciprocal grants, this is recognised in profit or loss on a systematic basis over the periods in which ANSTO recognises as expenses the related costs for which the grants are intended to compensate. Where the grants also include funds that relate to future related costs for which the grants are intended to compensate, this portion is recognised as revenue in advance.

For non-reciprocal grants, ANSTO is deemed to have assumed control when the grant is receivable or received. Government grants that are receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to ANSTO with future related costs, are recognised in profit or loss in the period in which they become receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

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 i.e. whether they have been generated in the course of the ordinary activities of ANSTO. Contributions of assets at no cost or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition.