Note 2.1A: Cash and Cash Equivalents

Cash on hand

Deposits

Total cash and cash equivalents

Note 2.1B: Trade and Other Receivables

Goods and services receivables

Goods and services

Total goods and services receivables

Other receivables

Other

Total other receivables

Total trade and other receivables (gross)

Less impairment loss allowance

Total trade and other receivables (net)

Credit terms for goods and services were within 30 days (2019: 30 days).

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

As at 1 July 2019

Gross book value

Accumulated depreciation, amortisation and impairment

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

Additions

Purchase

Internally developed

Donation/Gift

Right-of-use assets

Revaluations and impairments recognised in other comprehensive income

Depreciation and amortisation

Depreciation on right-of-use assets

Disposals

Total as at 30 June 2020 represented by

Gross book value

Accumulated depreciation, amortisation and impairment

Accounting Policy

Property, Plant and Equipment Assets

(excluding Heritage and Cultural)

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. Non-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.

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 $2,000, 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).

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.

Revaluations

Following initial recognition at cost, property, plant and equipment 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 depends 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 reverses 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 reverse 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.

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 (Collection) Assets

Significant donated Heritage and Cultural (Collection) assets are recognised at the time of acquisition, and other donated collection items are brought to account at the time of revaluation.

The Memorial's collection of Heritage and Cultural Assets comprises a wide range of objects relating to Australia 's military history, including but not limited to:

· Works of art (various media);

· Film;

· Large technology objects;

· Audio;

· Military heraldry and technology items;

· Photographs;

· Official and private records; and

· Ephemera.

Pursuant to section 8 of the Australian War Memorial Act 1980, the Memorial has the authority to dispose of heritage and cultural items which are not required as part of the National Collection, or are unfit for inclusion. Section 8 of the Australian War Memorial Act 1980 dictates the appropriate approvals to dispose of National Collection assets.

The decision whether or not to acquire or retain an item for the National Collection is based on two criteria:

1. Assessment to establish that the item is of significance to Australian military history; and

2. Assessment that the benefit and resource implications of acquiring or retaining the item are acceptable.

The evaluation process ensures that the history and provenance of objects is recorded at the time of acquisition and records the significance of the item to the Australian community, provides a systematic assessment of the values of objects against the existing collection and other collecting institutions, and assists in settling priorities for collection management and conservation resources.

The Memorial's Collection Development Plan for Heritage and Cultural Assets can be found at:

https://www.awm.gov.au/about/organisation/corporate/national-collection-development-plan

The Memorial's preservation and curatorial policies

for Heritage and Cultural Assets can be found at:

https://www.awm.gov.au/about/our-work/projects/conservation

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 Memorial 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 that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition.

Depreciation

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

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:

Buildings

2020 - 3 to 150 years

2019 - 7 to 150 years

Plant and equipment

2020- 2 to 20 years

2020 - 2 to 20 years

Exhibitions

2020 - 1 to 15 years

2019 - 1 to 20 years

The depreciation rates for Right of Use (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 entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Significant accounting judgements and estimates

The fair value of land and buildings is considered to be the market value of similar assets, taking into account the heritage aspects of the buildings where appropriate, and using depreciated replacement cost if no active market is identified.

Recognition Threshold

Purchases of Heritage and Cultural (Collection) Assets are recognised initially at cost in the statement of financial position, except for purchases costing less than $10,000, 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).

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.

Revaluations

Heritage and Cultural (Collection) Assets are carried at fair value which is measured at depreciated replacement cost or market selling price (for items where a market exists).

Following initial recognition at cost, Heritage and Cultural (Collection) Assets are carried at fair value less accumulated impairment losses. Valuations are conducted with sufficient frequency such that the carrying amounts of assets do not differ materially from the assets' fair values at the reporting date.

The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Depreciation

From 1 July 2018, Heritage and Cultural (Collection) Assets are no longer depreciated as they have indefinite useful lives given the Memorial has appropriate curatorial and preservation policies and procedures in place. All Heritage and Cultural (Collection) Assets are subject to regular impairment testing when there is an indication that the assets may be impaired.

Significant accounting judgements and change in estimates

The fair value of Heritage and Cultural (Collection) Assets is considered to be market selling price (where such a market exists), or depreciated replacement cost, taking into consideration the intrinsic value of historically significant objects.

Owing to the size of the National Collection, the items have been stratified into High Value Items and Collections (HVIC) and Low Value Pool (LVP) items. HVIC are valued on a cyclical basis through an external valuation performed by an independent valuer. LVP items are subject to an annual management valuation and impairment assessment.

Intangibles

The Memorial's intangibles comprise purchased and internally developed software, which 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 range from 1 to 8 years (2019: 3 to 8 years). All software assets were assessed for indications of impairment at 30 June 2020.

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Note 2.2B: Inventories

Inventories held for sale:

Finished goods

Total inventories held for sale

Note 2.3A: Suppliers

Trade creditors and accruals

Total suppliers

Settlement terms are 30 days.

Note 2.3B: Other Payables

Salaries and wages

Prepayments received/unearned income

Total other payables

Note 2.4A: Leases

Lease Liabilities⁸

Plant and equipment

Total leases