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Financial position

2020

2019

$

$

2.1 - Financial Assets

2.1A - Cash and cash equivalents

Cash on hand or on deposit

2,954,180

3,580,232

Total cash and cash equivalents

2,954,180

3,580,232

Accounting policy

Cash is recognised at its nominal amount. Cash and cash equivalents include:

a)

cash on hand;

b)

demand deposits in bank accounts with an original maturity of 3 months or less that are

readily convertible to known amounts of cash and subject to insignificant risk of changes in

value; and

c)

cash in everyday accounts.

2.1B - Trade and other receivables

Trade and services receivables

Goods and services

910,849

1,159,609

Accrued Interest

1,116

7,887

Accrued Income

88,977

25,714

Total trade and other receivables

1,000,942

1,193,210

All receivables are expected to be recovered in no more than 12 months. Settlement terms for receivables is usually within 30 days of invoice date (2019: 30 days).

Trade and other receivables aged as follows:

Not due

657,214

33,601

Overdue by:

0 to 30 days

207,366

843,734

31 to 60 days

118,341

278,538

61 to 90 days

-

37,337

more than 90 days

18,021

-

Total trade and other receivables

1,000,942

1,193,210

Accounting policy

Trade and other receivables that have fixed or determinable payments and that are not quoted in an active market are classified as 'receivables'. Receivables are measured at amortised cost using the effective interest method less impairment.

2.2 Non-Financial Assets

2.2A - Reconciliation of the opening and closing balances for Property, Plant and Equipment and Intangibles

Reconciliation of the opening and closing balances of property, plant, equipment and intangibles for 2020

Furniture and Fittings

$

Leasehold Improvements

$

Plant and Equipment

$

Building ROU$

Capital WIP $

Total property plant and equipment

$

Computer software

$

Website

$

Total intangibles

$

Total

$

As at 1 July 2019

Gross book value

221,714

2,064,841

422,374

-

12,860

2,721,789

10,637

117,200

127,837

2,849,626

Accumulated depreciation, amortisation and impairment

(96,400)

(1,168,972)

(219,177)

-

-

(1,484,549)

(2,674)

(36,968)

(39,642)

(1,524,191)

Total as at 1 July 2019

125,314

895,869

203,197

-

12,860

1,237,240

7,963

80,232

88,195

1,325,435

Recognition of right of use asset on initial application of AASB 16

-

-

-

5,803,411

-

5,803,411

-

-

-

5,803,411

Adjusted total as at 1 July 2019

125,314

895,869

203,197

5,803,411

12,860

7,040,651

7,963

80,232

88,195

7,128,846

Additions

Purchase

83,778

226,001

42,988

36,353

389,120

-

14,900

14,900

404,020

Transfer to/from WIP

-

12,860

-

(12,860)

-

-

-

-

-

Depreciation and amortisation

(18,309)

(104,228)

(75,066)

(904,428)

-

(1,102,031)

(3,510)

(31,653)

(35,163)

(1,137,195)

Total as at 30 June 2020

190,783

1,030,502

171,119

4,898,983

36,353

6,327,740

4,453

63,479

67,932

6,395,672

-

Total as at 30 June 2020 represented by

-

-

-

Gross book value

305,493

2,303,702

465,362

5,803,411

36,353

8,914,320

10,637

132,100

142,737

9,057,057

Accumulated depreciation, amortisation and impairment

(114,709)

(1,273,200)

(294,243)

(904,428)

-

(2,586,580)

(6,184)

(68,621)

(74,805)

(2,661,385)

Total as at 30 June 2020 represented by

190,783

1,030,502

171,119

4,898,983

36,353

6,327,740

4,453

63,479

67,932

6,395,672

2.2 Non-Financial Assets

2.2A - Reconciliation of the opening and closing balances for Property, Plant and Equipment and Intangibles

Reconciliation of the opening and closing balances of property, plant, equipment and intangibles for 2019

Furniture and Fittings
$

Leasehold Improvements
$

Plant and Equipment
$

Capital WIP $

Total property plant and equipment
$

Computer software
$

Website
$

Total intangibles
$

Total
$

As at 1 July 2018

Gross book value

94,099

1,132,056

246,676

-

1,472,831

10,927

79,200

90,127

1,562,958

Accumulated depreciation, amortisation and impairment

(77,922)

(1,040,766)

(200,043)

-

(1,318,731)

(10,927)

(15,398)

(26,325)

(1,345,056)

Total as at 1 July 2018

16,177

91,290

46,633

-

154,100

-

63,802

63,802

217,902

Additions

Purchase

127,616

46,498

216,002

12,860

402,976

10,637

38,000

48,637

451,613

Lease incentives and make good provisions

-

886,288

-

-

886,288

-

-

-

886,288

Depreciation

(18,479)

(128,207)

(59,438)

-

(206,124)

(2,674)

(21,570)

(24,244)

(230,368)

Disposals

-

-

-

Disposal

(40,304)

(40,304)

(10,927)

(10,927)

(51,231)

Write down of assets

-

-

-

-

-

Total as at 30 June 2019

125,314

895,869

203,197

12,860

1,237,240

7,963

80,232

88,195

1,325,435

-

Total as at 30 June 2019 represented by

Gross book value

221,714

2,064,841

422,374

12,860

2,721,789

10,637

117,200

127,837

2,849,626

Accumulated depreciation, amortisation and impairment

(96,400)

(1,168,972)

(219,177)

-

(1,484,549)

(2,674)

(36,968)

(39,642)

(1,524,191)

Total as at 30 June 2019 represented by

125,314

895,869

203,197

12,860

1,237,240

7,963

80,232

88,195

1,325,435

Accounting policy

Assets are recorded at cost on acquisition.

ASPI acquired assets at no cost from the Department of Defence in 2001/2002. These assets were initially recognised as contributions by owners at their fair value at the date of acquisition.

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $1,000, which are expensed in the year of acquisition.

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions in property leases taken up where there exists an obligation to restore the property to its original condition. These costs are included in the value of leasehold improvements with a corresponding provision for the 'make good' recognised.

Depreciation

Depreciable property plant and equipment assets are written off to their estimated residual values over their estimated useful lives to ASPI using, in all cases, the straight line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset class

2020

2019

Furniture & Fittings

5 to 20 years

5 to 10 years

Leasehold Improvements

5 to 12 years

5 to 12 years

Building right-of-use asset

5 years

-

Plant & Equipment

4 to 10 years

3 to 10 years

Computer software

3 years

3 years

Websites

4 years

4 years

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount. No indicators of impairment were identified (2019: Nil).

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if ASPI were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Intangibles

ASPI's intangibles comprise purchased software, an internally developed database and website. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight line basis over its anticipated useful life. The useful lives of ASPI's software are 3 to 4 years (2019: 3 to 4 years). All software assets were assessed for indications of impairment as at 30 June 2020 and no idicators of impairment were identified, (2019: Nil).

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. No property, plant, equipment and intangibles are expected to be disposed in the next 12 months.

Building right-of-use asset

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by ASPI as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned. On initial adoption of AASB 16 ASPI has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset. As at 30 June 2020, no indicators of impairment were identified. Leased ROU assets continue to be measured at cost after initial recognition in the financial report.

2020

2019

$

$

2.3 - Payables

2.3A - Suppliers

Trade creditors

136,400

179,029

Accruals

39,809

190,746

Total suppliers

176,209

369,775

All suppliers are expected to be settled in no more than 12 months. Settlement terms for suppliers is usually within 30 days of invoice date (2019: 30 days).

2.3B - Other payables

Salaries and wages

101,175

178,232

Superannuation

7,313

995

GST liabilities

19,161

55,675

Lease incentive

-

666,866

Total other payables

127,649

901,768

Lease incentives balance on 1 July 2019 had been reversed on transition to the new accounting standard AASB16 Leases.

Other payables expected to be settled

No more than 12 months

127,649

339,686

More than 12 months

-

562,082

Total other payables

127,649

901,768

2.3C - Lease Liability

Lease liability

4,990,862

-

Total lease liability

4,990,862

-

ASPI has a financial lease in place for office premise at Level 2 and conference facilities on the Ground Floor of 40 Macquarie Street Barton ACT 2600. The term of the lease is for seven years commencing 12 November 2018 with annual 3% rate increases.

Lease liability expected to be settled

Within 1 year

847,976

-

Between 2 to 5 years

3,770,467

-

Greater than 5 years

372,418

-

Total lease liability

4,990,862

-

Accounting policy

From 1 July 2019, ASPI has adopted AASB 16 - Leases and recognised the full lease liability discounted using the incremental borrowing rate (IBR) method until the end of the lease on 11 November 2025. On transition to AASB 16, ASPI recognised additional right-of-use asset and additional lease liabilities. Lease incentive and straight-line payables recognised as at 1 July 2019 were cleared to retained earnings. The impact on transition is summarised below:

Right-of-use asset recognised - Building

5,803,411

Lease liabilities recognised

(5,803,411)

Lease incentives cleared

666,866

Lease straight-lining payable cleared

51,840

Balance to retained earnings

(718,760)

The following table reconciles the minimum lease commitments disclosed in the 30 June 2019 financial report to the amount of lease liabilities recognised on 1 July 2019.

Minimum operating lease commitment as at 30 June 2019

6,050,492

IBR as at 1 July 2019

(247,081)

Lease liabilities recognised at 1 July 2019

5,803,411

The following table reconciles opening and closing balances of lease liabilities

Lease liabilities recognised at 1 July 2019

5,803,411

Principal payment of lease

(812,550)

Lease liabilities balance at 30 June 2020

4,990,862

2.3D - Unearned Income

Unearned Income

642,094

1,827,388

Total unearned income

642,094

1,827,388

Accounting policy

AASB 15 - Revenue from Contracts, ASPI has adopted AASB 15 to recognise revenue received in advance as at 30 June 2020 as per the agreements, where the performance obligations have not yet been met as at 30 June 2020.

2.3E - Other provisions

Provision for restoration

445,970

448,762

Total other provisions

445,970

448,762

Other provisions expected to be settled

No more than 12 months

-

-

More than 12 months

445,970

448,762

Total other provisions

445,970

448,762

As at 1 July 2019

448,762

Unwinding of discount

(2,792)

Total as at 30 June 2020

445,970

ASPI currently has one (2019:1) agreement for the leasing of premises which have provisions requiring the restoration of the premises to their original condition at the conclusion of the lease. ASPI has made a provision to reflect the present value of this obligation.

2020

2019

$

$

2.3F - Cash Flow Reconciliation

Reconciliation of cash and cash equivalents as per statement of

financial position and cash flow statement

Cash and cash equivalents as per

Cash flow statement

2,954,180

3,580,232

Statement of financial position

2,954,180

3,580,232

Discrepancy

-

-

Reconciliation of net cost of services to net cash from

operating and financing activities

Net contribution by/(cost of) services

581,893

( 70,587)

Adjustments for non-cash items

Depreciation / Amortisation

1,137,195

230,368

Disposal and write down of non financial assets

-

51,231

Bad-debt write off

-

818

1,137,195

282,417

Cash flows from financing activities

Payment of principal and interest of lease liability

(876,608)

-

Net cash from financing activities

(876,608)

-

Movements in assets and liabilities

Assets

Decrease/(Increase) in Net receivables

192,268

(447,192)

Decrease/(Increase) in Prepayments

22,102

(30,722)

Decrease/(increase) in Non-financial assets including Building ROU

(5,083,097)

-

Liabilities

Increase/(Decrease) in Supplier payables

(193,566)

219,004

Increase/(Decrease) in Other payables

(774,119)

417,654

Increase/(Decrease) in Unearned income

(1,186,848)

709,902

Increase/(Decrease) in Lease liability

4,990,862

-

Increase/(Decrease) in Provisions

#REF!

340,264

Increase/(Decrease) in Lease Incentives

-

( 886,288)

Net cash from operating activities

654,576

534,451