Statement of Comprehensive Income

Australian Trade and Investment Commission

Statement of Comprehensive Income

for the period ended 30 June 2020

The above statement should be read in conjunction with the accompanying notes.

1. Austrade adopted AASB 16 Leases using the modified retrospective approach and as such the comparative information for 2018-19 is not restated.

2. Austrade restated 2018-19 comparatives to take up a provision for makegood, refer note 8.2A.

Budget Variances Commentary

The financial statements provide a comparison of the original budget as presented in the 2019-20 Portfolio Budget Statements (PBS) to the 2019-20 final outcome as presented in accordance with Australian Accounting Standards for the Australian Trade and Investment Commission (Austrade). The Budget is not audited.

Variances are considered to be ‘major’ based on the following criteria:

• the variance between budget and actual is greater than 10%; and
• the variance between budget and actual is greater than 2% of total expenses; or
• the variance between budget and actual is below this threshold but is considered important for the reader’s understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of Austrade.

In some instances, a budget has not been provided for in the PBS, for example non-cash items such as asset revaluations, foreign exchange and sale of asset adjustments. Unless the variance is considered ‘major’ no explanation has been provided.

Statement of Comprehensive Income

Employee benefits

Employee benefits increased due to full-time equivalent employee increasing by 26 and Austrade’s certified agreement increase of 2%.

Suppliers

Suppliers expenses decreased due to operating lease rentals expenses being included in the original budget, these are now treated under AASB 16 Leases as depreciation and amortisation.

Depreciation and amortisation

Austrade adopted AASB 16 from 1 July 2019 which resulted in increased depreciation and amortisation expenses of $26.6m for right-of-use assets, these costs were not in the original budget.

Finance costs

Austrade adopted AASB 16 from 1 July 2019 which resulted in finance costs on right-of-use assets, these costs were not in the original budget.

Revenue from Government

Austrade received a number of small increases in appropriation after the original budget, including the Bushfire Recovery Package and for a New Deregulation Agenda promoting digital innovation and client development.

Statement of Financial Position

Australian Trade and Investment Commission

Statement of Financial Position

as at 30 June 2020

The above statement should be read in conjunction with the accompanying notes.

1. Austrade adopted AASB 16 Leases using the modified retrospective approach and as such comparative information presented for 2018-19 is not restated.

2. Austrade restated 2018-19 to take up a provision for makegood, refer note 8.2A.

Budget Variances Commentary

Statement of Financial Position

Cash and cash equivalents

Cash and cash equivalents were higher than budget due to timing differences in the transfer of monies to Austrade’s offshore post bank accounts.

Trade and other receivables

Trade and other receivables were lower than budget mainly due to the reduction in the appropriation receivable, which relates to the operating loss.

Buildings

Buildings includes right-of-use assets of $78.5m, these costs were not in the original budget.

Computer software and Other intangibles

Computer software and Other intangibles in the original budget were not separated, the combined increase was mainly due Austrade’s development of internal software projects and Other intangibles in connection with the Tourism International Visitor Survey and National Visitor Survey.

Other non-financial assets

Other non-financial assets decreased compared to the original budget due to the treatment of the prepayment of lease expenses under AASB 16 Leases, these are recorded as principal repayments and reduce the Lease provision.

Other provisions

Restoration provision has been restated for 2018-19 and taken up in 2019-20, these costs were not in the original budget.

Leases

Leases are the interest bearing liability taken up from the implementation of AASB 16 Leases, these costs were not in the original budget.

Equity

Refer to Statement of Changes in Equity for budget variance explanations.

Statement of Changes in Equity

Australian Trade and Investment Commission

Statement of Changes in Equity

for the period ended 30 June 2020

Accounting Policy

Equity injections

Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Budget Variances Commentary

Statement of Changes in Equity

Statement of Changes in Equity

No comparison has been provided for the Statement of Changes in Equity as major changes between original budget and actual outcome are explained in the movements in the Statement of Comprehensive Income and the Statement of Financial Position.

Cash Flow Statement

Australian Trade and Investment Commission

Cash Flow Statement

for the period ended 30 June 2020

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Cash Flow Statement

Appropriations

Appropriations increased due to Total comprehensive loss, Austrade have reduced its Appropriation receivable.

Employees

Employee payments increased due to full-time equivalent employee increasing by 26 and Austrade’s certified agreement increase of 2%.

Suppliers

Supplier payments decreased due to adoption of AASB 16 Leases, these are now classified as Principal payments of lease liabilities.

Principal payments of lease liabilities

Principal payments of lease liabilities are due to adoption of AASB 16 Leases, these costs were not in the original budget.

GST received and Suppliers cash used

No budget for GST receivable is shown as it was offset with Suppliers cash used in the budget.

Administered Schedule of Comprehensive Income

Australian Trade and Investment Commission

Administered Schedule of Comprehensive Income

for the period ended 30 June 2020

The above schedule should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Administered Schedule of Comprehensive Income

Suppliers

The new program for International Freight Assistance Mechanism Grants (IFAM) includes payments for specialised services included in Suppliers of $33.9m, these costs were not in the original budget.

Grants

As a Government response to COVID-19 Austrade received an increase in EMDG appropriation of $49.8m and an IFAM appropriation of $55.0m, these costs were not in the original budget.

IFAM total expenditure in Suppliers ($33.9m) and Grants ($21.1m).

Administered Schedule of Assets and Liabilities

Australian Trade and Investment Commission

Administered Schedule of Assets and Liabilities

as at 30 June 2020

The above schedule should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Administered Schedule of Assets and Liabilities

Trade and other receivables

Trade and other receivables increased due to grant agreements approved at the end of financial year but not paid until July 2020, not included in the original budget.

Grants and Supplier payable

Grants and Suppliers payable increase due to the accrual of IFAM operating expenses and grants, not included in the original budget. A significant delay exists between actual flights and receiving invoices from providers by Austrade.

Administered Reconciliation Schedule

Australian Trade and Investment Commission

Administered Reconciliation Schedule

for the period ended 30 June 2020

The above schedule should be read in conjunction with the accompanying notes.

Accounting Policy

Administered Cash Transfers to and from the Official Public Account

Revenue collected by Austrade for use by the Government rather than Austrade is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by Austrade on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

Administered Cash Flow Statement

Australian Trade and Investment Commission

Administered Cash Flow Statement

for the period ended 30 June 2020

The above statement should be read in conjunction with the accompanying notes.