Go to top of page

Note 2 - Financial Position

2.1 Financial Assets

2020

2019

$’000

$’000

2.1A: Cash and cash equivalents

Cash on hand or on deposit

145

152

Total cash and cash equivalents

145

152

Accounting Policy

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

a) cash on hand; and

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.

2.1B: Trade and other receivables

Goods and services receivables

Goods and services

1

88

Total goods and services receivables

1

88

Appropriations receivables

Appropriation receivable

8,311

21,210

Total appropriations receivables

8,311

21,210

Other receivables

Statutory receivables

72

47

Receivables from Government 1

-

-

Total other receivables

72

47

Total trade and other receivables (gross)

8,384

21,345

Total trade and other receivables (net)

8,384

21,345

Trade and other receivables have been assessed for impairment and none was identified.

Accounting Policy

Financial assets

Trade receivables and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

1. An amount of $0.293 million was incorrectly recognised within Receivables from Government during 2018-19, and is now correctly reflected within Appropriation receivable for 2019-20. For additional detail please refer to Overview section.

2.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

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

Buildings

Heritage and cultural

Plant and equipment

Computer Software1

Total

$’000

$’000

$’000

$’000

$’000

As at 1 July 2019

Gross book value

-

15

2,030

6,653

8,698

Accumulated depreciation, amortisation and impairment

-

-

(850)

(5,526)

(6,376)

Total as at 1 July 2019

-

15

1,179

1,127

2,321

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

10,153

-

-

-

10,153

Adjusted total as at 1 July 2019

10,153

15

1,179

1,127

12,474

Additions

Purchase

-

-

151

96

247

Internally developed

-

-

-

186

186

Right-of-use assets

-

-

116

-

116

Revaluations and impairments recognised in other comprehensive income

-

1

108

-

109

Impairments recognised in net cost of services2

-

-

(7)

-

(7)

Depreciation and amortisation

-

-

(370)

(273)

(643)

Depreciation on right-of-use assets

(1,583)

-

(3)

-

(1,586)

Other movements

Reclassification - previously held for sale3

-

-

15

-

15

Other movements of right-of-use assets

-

-

(104)

-

(104)

Total as at 30 June 2020

8,570

16

1,085

1,136

10,807

Buildings

Heritage and cultural

Plant and equipment

Computer Software

Total

$’000

$’000

$’000

$’000

$’000

Total as at 30 June 2020 represented by

Gross book value

10,153

16

1,154

6,935

18,258

Accumulated depreciation, amortisation and impairment

(1,583)

-

(69)

(5,799)

(7,451)

Total as at 30 June 2020

8,570

16

1,085

1,136

10,807

Carrying amount of right-of-use assets

8,570

-

113

-

8,683

1. The carrying amount of computer software included $969k internally generated software and $167k purchased software.

2. An impairment loss of $2k was recognised in relation to assets previously identified as held for sale, with the intent of sale no longer existing. Previously on recognition of the planned sale, an impairment loss of $18k was recognised. During 2020 an additional $5k of plant and equipment assets were also impaired.

3. A group of plant and equipment assets previously identified as held for sale were reclassified as a plan of sale was no longer able to be identified.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 5.3. An independent valuer, Jones Lang LaSalle Public Sector Valuations Pty Ltd revalued all non-financial assets as at 30 April 2020.

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

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 $5,000 excluding GST, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Leased Right of Use (ROU) Assets

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 Commonwealth lessees 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 the ATSB 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 ROU lease asset that shows indicators of impairment and an impairment loss is recognised against any ROU asset that is impaired. Leased ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, GGS and Whole of Government financial statements.

Revaluations

Following initial recognition at cost, property, plant and equipment (excluding ROU assets) are carried at fair value (or an amount not materially different from fair value) less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the ATSB 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:

2020

2019

Plant and equipment

Computer equipment

Office equipment

Heritage and cultural

3 to 10 years

4 years

3 to 10 years

100 years

3 to 10 years

4 years

3 to 10 years

100 years

The ATSB has items of property, plant and equipment that are heritage and cultural assets that have limited useful lives and are depreciated.

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

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.

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 the ATSB were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

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.

Heritage and Cultural Assets

The ATSB has a Pegasus Mark II Propellor from a Supermarine Walrus aircraft. The Supermarine Walrus was a British single-engine amphibious biplane reconnaissance aircraft first flown in 1933.

The ATSB has classified this item as a heritage and cultural asset as its primary purpose relates to its heritage and cultural significance.

Intangibles

The ATSB's intangibles comprise of purchased software and internally developed software for internal use. 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 the ATSB's software is five years.

All software assets were assessed for indications of impairment as at 30 June 2020.

2020

2019

$’000

$’000

2.3A Suppliers

Trade creditors and accruals

(47)

(292)

Accrued expenses

(522)

(114)

(569)

(406)

Settlement is usually made within 31 days.

2.3B: Other payables

Salaries and wages

(260)

(166)

Superannuation

(33)

(16)

Separations and redundancies

(185)

-

Unearned income

(2)

-

Total other payables

(480)

(182)

Accounting Policy

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (irrespective of having been invoiced).

Parental Leave Payments Scheme

Amounts received under the Parental Leave Payments Scheme by the ATSB not yet paid to employees were presented gross as cash and a liability (payable). The total amount received under this scheme was $2k (2019: Nil).

2.4 Interest Bearing Liabilities

2020

2019

$’000

$’000

2.4A: Leases

Lease Liabilities

Buildings

(8,749)

-

Plant and equipment

(113)

-

Finance Leases1

-

(119)

Total leases

(8,862)

(119)

1. The ATSB 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.

Total cash outflow for leases for the year ended 30 June 2020 was $1.488m.

Accounting Policy

Refer to Overview section for accounting policy on leases.