Note 1. Departmental financial performance
This section analyses the financial performance of ASIC for the year ended 30 June 2020
1.1 Expenses
2020 | 2019 | |
|---|---|---|
1.1A: Employee benefits | ||
Wages and salaries | 208,968 | 167,415 |
Superannuation | ||
Defined-benefit schemes | 12,018 | 11,133 |
Defined-contribution schemes | 25,403 | 21,101 |
Leave and other entitlements | 28,047 | 28,253 |
Separation and redundancies1,2 | 920 | (867) |
Total employee benefits | 275,356 | 227,035 |
1 Separation and redundancy costs are generally calculated on the basis of two weeks pay for every year of service for each employee with a minimum of four weeks and a maximum of 48 weeks.
2 The Separation and redundancies amount of ($0.867m) is mainly attributable to a downward revision to provisions for employee restructuring (refer to Note 6.1A: Employee provisions – Restructuring provision and Note 3.4A: Other provisions – Provision for restructuring).
Accounting Policy
Accounting policies for employee related expenses are detailed in Note 6 People and relationships.
2020 $’000 | 2019 $’000 | |
|---|---|---|
1.1B: Suppliers | ||
Goods and services supplied or rendered | ||
Legal and forensic costs | 46,352 | 32,382 |
Office computer and software expenses | 29,372 | 27,896 |
Consultants and specialist services | 26,083 | 28,843 |
Property-related outgoings | 9,406 | 8,180 |
Information costs | 5,337 | 9,189 |
Travel | 4,318 | 6,260 |
Other goods and services | 3,775 | 4,354 |
Bank fees | 2,921 | 2,888 |
Learning and development | 2,780 | 3,884 |
Postage and freight | 2,693 | 2,405 |
Communications | 2,346 | 2,661 |
Recruitment | 2,079 | 1,569 |
Security | 1,696 | 2,008 |
Total goods and services supplied or rendered | 139,158 | 132,519 |
Goods supplied | 1,556 | 2,142 |
Services rendered | 137,602 | 130,377 |
Total goods and services supplied or rendered | 139,158 | 132,519 |
Other suppliers | ||
Operating lease rentals1 | – | 22,736 |
Short-term leases | 10,160 | - |
Workers compensation expense | (288) | 2,024 |
Fringe benefits tax | 258 | 189 |
Total other suppliers | 10,130 | 24,949 |
Total suppliers | 149,288 | 157,468 |
1 ASIC 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 Notes 1.1B, 1.1C and 3.4.
Accounting Policy
Short-term leases and leases of low-value assets
ASIC has elected not to recognise the ROU 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). ASIC recognises the lease payments associated with these leases as an expense on a straight-line basis over the life of the lease terms.
2020 $’000 | 2019 $’000 | |
|---|---|---|
1.1C: Finance costs | ||
Unwinding of restoration provision | 188 | 224 |
Interest on lease liability | 1,209 | – |
Total finance costs | 1,397 | 224 |
1.1D: Write-down and impairment of other assets | ||
Write-off of plant & equipment | 2 | 205 |
Total write-down and impairment of other assets | 2 | 205 |
1.2 Own-source revenue
Accounting Policy
Rendering of services
Revenue from rendering of services is recognised when the resources have been purchased. 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 ASIC.
Operating lease revenue
Operating sublease revenue is recognised as revenue on commencement of the lease under the Memorandum of Understanding. The leases terms are on a 12 month rolling basis.
2020 | 2019 | |
|---|---|---|
1.2A: Other revenue | ||
Cost recoveries1 | 8,920 | 3,648 |
Other2 | 5,983 | 2,053 |
Total other revenues | 14,903 | 5,701 |
1 Amounts recovered by ASIC for court costs, investigations, professional fees, legal costs and prosecution disbursements.
2 Other revenue includes resources received free of charge (auditors’ remuneration) of $0.348m (2019: $0.380m) and revenue from the ATO to fund ASIC’s contribution to the New Deregulation Agenda initiative announced in the 2019–20 MYEFO budget update.
Accounting Policy
Resources received free of charge
Resources received free of charge are recognised as revenue when, and only when, the 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.
2020 $’000 | 2019 $’000 | |
|---|---|---|
1.2B: Revenue from Government | ||
Appropriations: | ||
Departmental appropriations | 362,066 | 338,096 |
Departmental special appropriations3 | 41,195 | 36,217 |
Total revenue from Government | 403,261 | 374,313 |
3 A special account is a limited special appropriation that notionally sets aside an amount that can be expended for a particular purpose. $41.2m of ASIC’s 2019–20 ordinary annual appropriation has been allocated to the Enforcement Special Account, which was established to fund the costs arising from the investigation and litigation of matters of significant public interest.
Accounting Policy
Revenue from Government
Amounts appropriated for departmental appropriations for the period (adjusted for any formal additions and reductions) are recognised as revenue from Government when ASIC gains control of the appropriation. Appropriations receivable are recognised at their nominal amounts.
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https://www.transparency.gov.au/annual-reports/australian-securities-and-investments-commission/reporting-year/2019-20-37