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This section analyses the financial performance of the Australian Prudential Regulation Authority for the year ended 30 June 2020.
1.1A: Employee benefits
Wages and salaries
Defined benefit plans
Defined contribution plans
Leave and other entitlements
Separation and redundancies
Other employee benefits
Total employee benefits
Accounting policies for employee-related expenses are detailed in section 4: People and relationships.
Professional services & consultants
Information, communication and technology
Training and conferences
Total services rendered
Operating lease rentals 1
Workers compensation expenses
Total other suppliers
1 APRA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.
Short-term leases and leases of low value assets
APRA has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). Correspondingly, payments under an operating lease (minimum lease payments) are expensed on a straight-line basis which is representative of the pattern of benefits received.
1.1C: Finance costs
Interest on lease liabilities 2
Adjustment to discount on restoration provisions
Bond rate movement
Total finance costs
2 APRA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.
The above lease disclosures should be read in conjunction with the accompanying notes 2.2 and 2.4.
1.2 Own-source revenue and gains
Own source revenue and gains
1.2A: Other revenue
Licence fees from finance sector entities
Resources received free of charge
Superannuation trustee application fees
Fees from foreign bank representative offices
Total other revenue
Rendering of services and other revenue
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
the probable economic benefits associated with the transaction will flow to APRA.
The stage of completion of contracts at the reporting date is determined by how the proportion of costs incurred to date relate to the estimated total cost of the transaction.
Revenue and receipts from sources other than an Appropriation Act are classified as Section 74 receipts.
Receivables for services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is no longer probable.
Resources received free of charge
Resources received free of charge are recognised as revenue or gains 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. The resources received free of charge by APRA are audit services from the Australian National Audit Office (ANAO) of $240,000 (2019: $240,000) and some research work valued at $400,000 in 2019.
1.2B: Revenue from Government
Total revenue from Government
Revenue from Government
Amounts appropriated for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when APRA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.
Appropriations receivable are recognised at their nominal amounts.