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Overview

The Basis of Preparation

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013 .

The financial statements have been prepared in accordance with:

  1. Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and
  2. Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest dollar unless otherwise specified.

New Australian Accounting Standards

All new standards, amendments to standards or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a future material effect, on the Corporation's financial statements except for AASB 15 and AASB 1058 described below.

Standard / Intrepretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 15 Revenue from Contracts with Customers / AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not‐for‐Profit Entities and AASB 1058 Income of Not‐For‐Profit Entities

AASB 15, AASB 2016-8 and AASB 1058 became effective 1 July 2019.

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and Interpretation 13 Customer Loyalty Programmes. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 1004 Contributions and applies to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable the entity to further its objectives, and where volunteer services are received.

The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

AASB 16 Leases

The Corporation does have any current lease arrangements.

Application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Income of Not‐For‐Profit Entities

The Entity adopted AASB 15 and AASB 1058 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under the various applicable AASBs and related interpretations.

Under the new income recognition model the Corporation shall first determine whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. If an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the Corporation applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the Corporation shall consider whether AASB 1058 applies.

In relation to AASB 15, the Corporation elected to apply the new standard to all new and uncompleted contracts from the date of initial application. The Corporation is required to aggregate the effect of all of the contract modifications that occur before the date of initial application.

Impact on transition

The impact on transition is summarised below:

1 July 2019

Assets

Contract assets

297,010

Total Assets

297,010

Liabilities

Contract liabilities

230,713

Total Liabilities

230,713

Total adjustment recognised in retained earnings

66,297

Set out below are the amounts by which each financial statement line item is affected as at and for the year ended 30 June 2020 as a result of the adoption of AASB 15 and AASB 1058. The first column shows amounts prepared under AASB 15 and AASB 1058 and the second column shows what the amounts would have been had AASB 15 and AASB 1058 not been adopted:

Transitional disclosure

AASB 15 /

AASB 1058

Previous

AASB

Increase /

(Decrease)

$

$

$

Expenses

Grants

17,018,983

17,091,100

( 72,117)

Total Expenses

17,018,983

17,091,100

( 72,117)

Revenue

Grants

3,850,461

3,706,542

143,919

Total Revenue

3,850,461

3,706,542

143,919

Net (cost of) / contribution by services

( 13,168,522)

( 13,384,558)

216,036

Assets

Contract assets

369,127

0

369,127

Total Assets

369,127

0

369,127

Liabilities

Contract liabilities

86,794

0

86,794

Total Liabilities

86,794

0

86,794

Net Assets

282,333

0

282,333

Equity

Adjustment on initial application of AASB 15/AASB 1058

66,297

0

66,297

Surplus/(Deficit) for the period

( 8,128,680)

( 8,344,716)

216,036

Retained earnings

( 8,062,383)

( 8,344,716)

282,333

Initial recognition of AASB 15 Revenue from contracts with customers requires revenue received for future performance obligations to be transferred to contract liabilities and expenses incurred for partially performed obligations that are not yet recoverable from the customer to be transferred to contract assets.

Taxation

The Corporation is exempt from all forms of taxation except Fringe Benefits Tax (FBT), the Goods and Services Tax (GST) and State payroll taxes.

Events after the Reporting

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the Corporation.

Accounting Judgements

In the process of applying the Corporation's accounting policies, management has made a number of judgements and applied estimates and assumptions to future events. Information around judgements and estimates which are material to the financial statements are found in the following notes: