1.1A: Employee Benefits

Wages and salaries

Superannuation:

Leave and other entitlements

Total employee benefits

Accounting Policy

Accounting policies for employee related expenses are contained in the People and Relationships section.

1.1B: Suppliers

Goods and services supplied and rendered

Total goods and services supplied or rendered

Total goods and services supplied or rendered

Other suppliers

Total other suppliers

Total suppliers

Lease commitments

The Corporation does not have any current lease arrangements.

1.1C: Grants

Public sector:

Private sector:

Total contracted grant programs

Total grants

Research grant commitments

The Corporation in its capacity as grantor has agreements for research grants payable that are commitments tied to the future performance of research, development and extension activities. Research grant commitments are Agreements Equally Proportionately Unperformed.

Total research grant commitments payable

1.1D: Write-down and Impairment of Other Assets

Total write-down and impairment of other assets

OWN-SOURCE REVENUE

1.2A: Revenue from contracts with customers

Total revenue from rendering of services

Total revenue from contracts with customers

Accounting Policy

Revenue from the sale of goods or services is recognised when control has been transferred to the customer.

The following is a description of principal activities from which the Corporation generates its revenue:

The transaction price is the total amount of consideration to which the Corporation expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectabilityof the debt is no longer probable.

Research grant commitments receivable

The Corporation in its capacity as grantee has agreements for research grants receivable that are commitments tied to the future performance of research, development and extension activities and project milestones.

Total research grant commitments receivable

1.2B: Interest

Total interest

Accounting Policy

Interest revenue is recognised by using the effective interest method.

1.2C: Other Revenue

Total other revenue

1.2D: Revenue from Government

Department of Agriculture, Water and the Environment:

Total revenue from Government

1.2E: Levies and Penalties

Total levies and penalties

Accounting Policy

Revenue from Government

Funding received or receivable from non-corporate Commonwealth entities (appropriated to the Department of Agriculture as a corporate Commonwealth entity payment item for payment to this Corporation) is recognised as Revenue from Government unless the funding is in the nature of an equity injection or a loan. Revenue from the Department of Agriculture, Water and the Environment is recognised on an accrual basis from the date that the Department of Agriculture, Water and the Environment notifies the Corporation of the amount receivable. Revenue from Government includes:

2.1A: Cash and Cash Equivalents

Total cash and cash equivalents

Accounting Policy

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

2.1B: Investments

Total investments

Accounting Policy

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Corporation has the positive intent and ability to hold to maturity are classified as investments. Investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

2.1C: Trade and Other Receivables

Goods and services receivables:

Total goods and services receivables

The contract assets are associated with recognition of AASB 15 Revenue from contracts with customers for expenses incurred for partially performed obligations that are not yet recoverable under grant agreements.

Refer Note 2.3A for information relating to contract liabilities.

Government receivables

Total government receivables

Other receivables:

Total other receivables

Total trade and other receivables

No indicators of impairment were found for trade and other receivables.

2.1D: Other Investments

Net other investments

Accounting Policy

The Corporation has invested in seed preference shares in an unlisted start-up company over which it does not have significant influence or control. The company has been established for the purpose of commercialisation of intellectual property that may benefit the Australian cotton industry and other agriculture sectors in Australia and worldwide.

Investments in unlisted companies are accounted for in accordance with AASB 9 Financial Instruments, and have been designated as 'investments in equity instruments at fair value through other comprehensive income' financial assets and are expected to be recovered in more than 12 months. (See note 4.1 for further information)

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

As at 1 July 2019

Gross book value

Accumulated depreciation, amortisation and impairment

Net book value 1 July 2019

Additions - Purchases

Depreciation and amortisation

Disposals:

Net book value 30 June 2020

Net book value as of 30 June 2020 represented by:

Gross book value

Accumulated depreciation, amortisation and impairment

Total net book value as at 30 June 2020

1. The carrying amount of computer software included $16,504 (2019: $71,698) purchased software and $20,778 (2019: $81,452) internally generated software.

No indicators of impairment were found in 2020 (2019: $nil).

No non-financial assets are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated below. On 30 June 2018, an independent valuer conducted the revaluation of land and buildings.

Land valuation has not changed.

A revaluation increment of $nil for buildings on freehold land (2019: $nil) was credited to the asset revaluation surplus by asset class and included in the equity section of the Statement of Financial Position.

Accounting Policy

Fair value measurement of non-financial assets are based on Level 2 inputs that are observable for the asset either directly or indirectly. The fair value of these assets do not have quoted prices in active markets (Level 1 inputs).

Land is assessed using market comparables being the sale prices of comparable land for similar land size and long-term land appreciation rates.

Buildings on freehold land are assessed using the discounted cash flow of future potential rental income adjusted for the market rate of interest.

Motor vehicles in material plant and equipment is assessed using quoted prices for similar motor vehicles.

Other material plant and equipment is assessed using the depreciated replacement cost based on market prices of similar assets less depreciation.

Acquisition of Assets

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 $1,000, 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 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 of land and buildings 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 was 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 Corporation 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:

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 Corporation 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.

Intangibles

The Corporation's intangibles comprise of purchased 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 Corporation's software are 3 to 5 years (2019: 3 to 5 years).

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

2.3A: Suppliers

Total suppliers

Settlement is usually made within 30 days.

The contract liabilities are associated with recognition of AASB 15 Revenue from contracts with customers for revenue received for future performance obligations under grant agreements.

Refer Note 2.1C for information relating to contract assets.

2.3B: Grants

Grants:

Public sector:

Private sector:

Total grants

All grants payable are expected to be settled within 12 months.

Settlement is usually within 30 days of completion of milestones and receipt of a tax invoice.

2.3C: Other Payables

Total other payables

3.1A: Employee Provisions

Total employee provisions

Accounting Policy

Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts.

Leave

The liability for employee benefits includes provision for annual leave and long service leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Corporation’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the Department of Finance standard parameters for the Long Service Leave Shorthand Method set out in the Financial Reporting Rule. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Corporation recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Corporation, directly or indirectly, including any director (whether executive or otherwise) of the Corporation. The Corporation has determined the key management personnel to be the Directors, Executive Director and General Managers. Key management personnel remuneration is reported in the table below:

Short-term employee benefits

Post-employment benefits

Other long-term employee benefits

Total key management personnel remuneration expenses

Notes:

The total number of key management personnel that are included in the above table is 10 (2019: 11).

The Corporation is an Australian Government controlled entity. Key management personnel include the directors and executive management.

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. These transactions have not been separately disclosed in this note.

Certain key management personnel related entities have transactions with the Corporation that occur within normal customer or supplier relationships on terms and conditions no more favourable than those which it is reasonable to expect the Corporation would have adopted if dealing with the director-related entity at arm's length in similar circumstances. Section 15 of the PGPA Rule 2014 is applied by the Board when a Director gives notice of a material personal interest in a matter. These transactions include the following entities and have been described below where the transactions are considered likely to be of interest to users of these financial statements:

Transactions with Related Parties

Elizabeth Alexander is a non-executive director of Plant Health Australia (PHA) which received funding from CRDC for membership to PHA and collaborative plant biosecurity projects.

Elizabeth Alexander is employed as an Agribusiness Development Coordinator of Central Highlands development Corporation (CHDC) which received funding from CRDC for sponsorship of the AgFrontier new regional Agtech incubator.

Total transactions with related parties

4.1A: Categories of Financial Instruments

Financial assets at amortised cost

Total financial assets at amortised cost

Financial assets at fair value through other comprehensive income (investments in equity instruments)

Total financial assets at fair value through other comprehensive income (investments in equity instruments)

Total financial assets

Financial Liabilities

Financial liabilities measured at amortised cost

Total financial liabilities measured at amortised cost

4.1B: Fair value information by financial asset class

Available-for-sale financial assets have been valued under the following fair value hierarchy:

· Level 3: inputs that are not observable and involve significant judgement.

Movements in available-for-sale financial assets

Closing balance of available-for-sale financial assets

Accounting Policy

Financial assets

With the implementation of AASB 9 Financial Instruments for the first time in 2019, the Corporation classifies its financial assets in the following categories:

a) financial assets at fair value through profit and loss; b) financial assets at fair value through other comprehensive income; and c) financial assets measured at amortised cost.

The classification depends on both the entity's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria:

Amortised cost is determined using the effective interest method.

Effective Interest Method

Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

Financial Assets at Fair Value Through Profit or Loss (FVTPL)

Financial assets are classified as financial assets at fair value through profit or loss where the financial assets either doesn't meet the criteria of financial assets held at amortised cost or at FVOCI (i.e. mandatorily held at FVTPL) or may be designated.

Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI)

Financial assets measured at fair value through other comprehensive income are held with the objective of both collecting contractual cash flows and selling the financial assets and the cash flows meet the SPPI test.

Any gains or losses as a result of fair value measurement or the recognition of an impairment loss allowance is recognised in other comprehensive income.

Significant accounting judgements and estimates for unlisted companies: The shares in the unlisted companies are valued on an earnings before interest and tax (EBIT) basis of management's view of potential cash flow outcomes. The estimates are based on the best information available (level 3 inputs) due to the start-up phase nature and that future cash flows are uncertain.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12‐month expected credit losses if risk has not increased.

The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through Profit or Loss Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial Liabilities at Amortised Cost

Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

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

4.1C: Net Gains or Losses on Financial Assets

Financial assets at amortised costs

Net gain on financial assets at amortised cost

Investments in equity instruments at fair value through other comprehensive income

Net gains/(losses) on investments in equity instruments at fair value through other comprehensive income

Net gain from financial assets

5.1A: Aggregate Assets and Liabilities

Assets expected to be recovered in:

Total assets

Liabilities expected to be settled in:

Total liabilities