Overview

Objectives of the Great Barrier Reef Marine Park Authority

The Great Barrier Reef Marine Park Authority (GBRMPA) is an Australian Government controlled non-corporate entity. It is a not-for-profit entity. Under the Great Barrier Reef Marine Park Act 1975, the Authority is responsible for managing one of the world's premier natural resources - the Great Barrier Reef Marine Park.

The GBRMPA and the Queensland Government jointly manage the Marine Park and this close collaboration is critically important for effectively managing such a large, diverse and complex marine area. The GBRMPA continues to work closely with other Australian Government entities, particularly the Department of the Environment and Energy, and other partners to implement the Reef 2050 Plan.

The continued existence of the GBRMPA in its present form and with its present programs is dependent on Government policy and on continued funding by Parliament for the GBRMPA's administration and programs.

GBRMPA activities contributing toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the GBRMPA in its own right. Administered activities involve the management or oversight by the GBRMPA, on behalf of the Government, of items controlled or incurred by the Government.

The GBRMPA conducts the following administered activities on behalf of the Government:

1. Collection of the Environmental Management Charge (EMC) and Infringements; and
2. Management of Commonwealth Islands land, heritage buildings and lease revenue.

Basis of preparation of the financial statements

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 thousand dollars unless otherwise specified.

Significant accounting judgements and estimates

In the process of applying the accounting policies listed in this note, the GBRMPA has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

Douglas Shoal remediation provision

In 2016-17 the $34.909m Douglas Shoal remediation provision was discounted over a 3 year period, with a flat rate of 2% based on CPI, for a resulting expensed discount of $1.319m. In 2017-18 the project plan was significantly revised, with the resulting provision of $34.298m calculated by discounting over a 5 year period, with a weighted rate of up to 3.5% based on a standard wage price index. The difference of $2.259m, between the calculated discount of $3.578m and the original discount, was recognised as a gain. In 2018-19 the project plan, and the parameters, have remained the same with only the timing of the yearly payments being revised. As per note 3.4, the provision is now calculated at $29.117m, with the $0.652m unwinding of total discount being expensed.

Provision finalised from previous adjustment to prior period

Legal advice received in April 2018 confirmed an underpayment for casual employees in Reef HQ resulting from a revised interpretation of certain clauses in the GBRMPA Enterprise Agreement. In 2017-18 GBRMPA recognised a liability to make salary back payments, in accordance with shift penalties, and in line with statutory limitations, for the period 1 May 2012 to 30 June 2018, to the value of $1.687m. In 2018-19 this provision has been finalised, as per note 6.1, with former casual employees paid their outstanding entitlement under the revised interpretation.

Buildings, plant and equipment

The value of buildings, plant and equipment has been taken to be fair value as determined by an independent valuer.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

New Australian accounting standards

Adoption of New Australian Accounting Standard Requirements

In 2018-19, AASB 9 Financial Instruments has been adopted in line with the prescribed 1 July 2018 date of initial application. As per note 7.2 and 7.3, the application of this standard has not resulted in any reclassifications, or any other material impact.

No accounting standard has been adopted earlier than the application date as stated in the standard.

All other new standards/revised standards/interpretations/amending standards that were issued prior to the signing of the financial statements and are applicable to the current reporting periods did not have a material effect. For the GBRMPA's future financial statements, the following standards are applicable from the 2019-20 reporting period, with the impact still to be assessed by management:

• AASB 15 Revenue from Contracts with Customers
• AASB 16 Leases
• AASB 1058 Income of Not-for-Profit Entities

Budgetary reporting of major variances (AASB1055)

The Budget Variances Commentary provides a comparison between the original budget provided to Parliament in May 2018, the revised budget presented at a consolidated Whole of Government level to Parliament in the Mid-Year Economic and Fiscal Outlook 2018-19 in December 2018, and the final financial outcome in the 2018-19 financial statements. As no further changes were made to the revised budget it was subsequently published, at the entity level, as the 2018-19 Estimated Actual in the 2019-20 Portfolio Budget Statements (PBS). Neither the original or revised budgets provided are audited, however major changes in budget have been explained as part of the variance analysis where relevant.

Variances are considered to be 'major' where:

1. the variance between budget and actual is greater than +/-10% of the budget for the line items; and
2. the variance between budget and actual is greater than +/-2% of the relevant budget base.

The relevant budget bases are:

• Departmental - Total Expenses
• Administered - Total Income

Variance explanations will also be provided where there have been major changes to business activities that may not be numerically material but by nature may assist users in understanding underlying business changes that may have occurred since the original budget was released.

Where a revised budget has been presented to Parliament, the GBRMPA may include variance explanations of major variances between the revised budget and actual amounts where they are considered relevant to an assessment of the discharge of accountability and to an analysis of the performance of the GBRMPA.

Taxation

The entity is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Reef HQ

The Reef HQ building was funded as a Commonwealth–State Bicentennial project, through the Great Barrier Reef Wonderland Association Incorporated (the Association) on land leased from the Townsville Port Authority. Following the winding up of the Association in September 2001 the lease arrangement for the land is now between the Great Barrier Reef Marine Park Authority and the Townsville Port Authority for $1. The impact of the changes in AASB 16 Leases on this arrangement is still to be assessed.

Insurance

The GBRMPA is insured for risks through the Government's insurable managed fund Comcover. This includes insurance cover for the operation of Reef HQ aquarium. Workers compensation is insured through Comcare Australia.

Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Events after the reporting period

Departmental

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

Administered

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

Financial performance

This section analyses the financial performance of Great Barrier Reef Marine Park Authority for the year ended 30 June.

Expenses

Leasing commitments

The GBRMPA in its capacity as lessee has five (5) Commercial Property leases throughout Queensland. Under the WOAG procurement program, GBRMPA lease fleet vehicles and multi-function photocopiers. The commercial property leases include escalation of rent based on CPI, and those that are not on a month-to-month basis also have options to extend.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Own-source revenue and gains

Own-source revenue

Income and expenses administered on behalf of Government

This section analyses the activities that the Great Barrier Reef Marine Park Authority does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

Administered - income

Financial position

This section analyses the Great Barrier Reef Marine Park Authority's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Financial assets

Non-financial assets

Revaluations of non-financial assets

Following on from independent comprehensive valuations in 2015 and 2018, along with desktop valuations in 2016 and 2017, Pickles Valuation Services (PVS) completed another independent comprehensive valuation in 2019. The requirement for an additional comprehensive valuation was primarily to assess the condition of the GBRMPA's primary non-financial asset, Reef HQ aquarium. Accordingly the fair value of this asset has been written down by $11.091m. Additionally, due to the GBRMPA's ageing asset base, and extended utilisation of classes such as Plant and Equipment, further revaluations were made to asset values and total useful lives across classes. As per this breakdown the overall write down has predominately been against buildings, made up primarily of Reef HQ aquarium, with the net effect a $10.721m decrease to the total Written Down Value (WDV), which has been taken from the asset revaluation reserve. In particular, there has been no impairment recorded against intangibles. The next scheduled comprehensive revaluation of GBRMPA's assets is in 2020-21 by an independent valuer. All increments and decrements have been transferred to accumulated depreciation firstly, and then the asset revaluation reserve. No decrements were expensed (2018: Nil).

Contractual commitments for the acquisition of property, plant and equipment

As at 30 June 2019, the GBRMPA had contractual commitments for asset acquisitions of $0.795m (2018: $0.638m).

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.

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, 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 such as IT equipment).

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. This is particularly relevant to 'make good' provisions in property leases taken up by the GBRMPA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the GBRMPA's leasehold improvements with a corresponding provision for the 'make good' recognised.

Make Good: The GBRMPA currently has nil (2018: nil) agreements for the leasing of premises which have provisions requiring the entity to restore the premises to their original condition at the conclusion of the lease.

Revaluations: Following initial recognition at cost, property plant and equipment were 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 do 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 were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation surplus except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluations decrements for a class of assets were 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.

Depreciation: Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the GBRMPA 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 recognisedin the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable assets are based on the following useful lives:

Impairment: All assets were assessed for impairment at 30 June 2019. 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 to sell 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 GBRMPA 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.

Computer software: These assets are carried at fair value as determined by an independent valuer. Computer software costing less than $5,000, is expensed in the year of acquisition.

Computer software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the GBRMPA's software is 3 to 10 years (2017-18: 3 to 10 years).

All software assets were assessed for indications of impairment as at 30 June 2019.

Inventory: Inventories held for sale are valued at the lower of cost and net realisable value. Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

Payables

Provisions

On 3 April 2010, the Chinese owned bulk carrier, Shen Neng 1, grounded on Douglas Shoal within the Great Barrier Reef Marine Park. Douglas Shoal is a reef shoal located 90 kilometres off the central coast of Queensland. The Shen Neng 1 traversed a significant area of Douglas Shoal over 3-12 April 2010 before being re-floated. The damage to Douglas Shoal comprises both physical and contaminant damage. The grounding created large depressions of rubble across Douglas Shoal as well as leaving behind large concentrations of toxic anti-fouling paint, in particular tributyltin (TBT) (banned in Australia since 2008).

The Commonwealth of Australia, acting through the Great Barrier Reef Marine Park Authority, commenced proceedings in March 2013 against the shipowner of the Shen Neng 1. The Commonwealth claimed damages for remediation of Douglas Shoal. The hearing was held in the Federal Court, however it was settled out of court for $35,000,000 with payment made in October 2016.

In 2018-19 the provision has been recalculated under the same 5 year project plan as 2017-18, utilising the same weighted wage price index, with only the timing of the yearly payments being revised. The current provision of $29.117m reconciles to the original provision of $35.000m when combined with the total discount applied of $2.926m as at 30 June 2019, and the life to date expenditure of $2.957m. Of the total discount applied to date, $0.652m has been expensed in 2018-19.

Assets and liabilities administered on behalf of the Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result the Great Barrier Reef Marine Park Authority does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

Administered - financial assets

Administered - non-financial assets

No indications of impairment were found, and as heritage listed properties the Islands do not depreciate, or have any stated useful life. The Island properties are not expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

In June 2018 comprehensive valuations were undertaken by Pickles Valuation Services on Dent Island and Low Isles, with Lady Elliot Island being comprehensively assessed in August 2018. An assessment of fair value was undertaken on the island properties with the recalculation resulting in an overall decrease of $0.741m. All increments and decrements are transferred to the asset revaluation surplus by asset class and included in the Administered Reconciliation Schedule. No increment/decrement was expensed in the current year (2018: Nil).

Accounting Policy

Island properties: Administered non-financial assets only consists of Island properties valued at fair value. Lighthouse and other adjacent properties are heritage listed therefore no depreciation is recorded against the asset. The Island properties are valued in accordance with AASB116 by an independent valuer. Valuations are deemed to occur on 30 June of each year. From 1 July 2015, the islands are valued in accordance with their restricted use under lease agreements.

Heritage and Cultural assets: In accordance with AASB116, and as per Environment Protection and Biodiversity Act 1999 (s. 341ZA) the Authority is required to have plans in place to comply with the Commonwealth Heritage management principles. Accordingly the Island properties are managed by Commonwealth project officer, and have resident caretakers for maintenance. Comprehensive valuations are conducted every 3 years, with the next one due in 2020-21, and desktop valuations are conducted in between. The GBRMPA Commonwealth Heritage Listed Places and Properties Heritage Strategy 2018–21, can be found at: http://hdl.handle.net/11017/3369.

Administered - payables

Funding

This section identifies the Great Barrier Reef Marine Park Authority's funding structure.

Appropriations

Regulatory charging summary

Net cash appropriation arrangements

Field management special account

The Special Account is used for the facilitation of payments for and on behalf of the GBRMPA and the Queensland Government Department of Environment and Science.

Appropriation: Public Governance, Performance and Accountability Act 2013 section 80

Establishing Instrument: Great Barrier Reef Marine Park Act 1975; section 49

Purpose: Great Barrier Reef Marine Park Act 1975; section 51(2):

1. the management, protection or maintenance of the Great Barrier Reef World Heritage Area;
2. purposes incidental to the management, protection or maintenance of the Great Barrier Reef World Heritage Area;
3. meeting the expenses of administering the account.

The guiding principles agreed between the Commonwealth and Queensland Governments under the Great Barrier Reef Intergovernmental Agreement 2015 are:

i) A collaborative and cooperative approach is fundamental to the effective long-term protection, conservation and management of the Great Barrier Reef as this is beyond the power and remit of either jurisdiction;

ii) The precautionary principle will be applied to protecting the environmental, World Heritage and National Heritage values of the Great Barrier Reef including its Outstanding Universal value;

iii) The marine and land environments within and adjacent to the Great Barrier Reef World Heritage Area will be managed in an integrated manner consistent with ecosystem-based management and the principles of ecologically sustainable use;

iv) Economic growth and the long-term health of the Great Barrier Reef ecosystem are interconnected, and actions or changes in one can impact on the other and must be taken into account, in particular

• population growth and economic development increases the demand for resource and recreational use of the Great Barrier Reef
• land-use activities in the catchment, and urban development can have adverse impacts on the quality of water entering the Great Barrier Reef, and
• regulation of activities that exploit marine resources, measures for protection of marine parks, or initiatives to reduce external pressures on the ecosystem can have regional and local social and economic effects, and improve the long-term viability of the region

v) Trends in the health, use of and risks to the environment of the Great Barrier Reef ecosystem, including its Outstanding Universal Value will be regularly monitored and reported to ensure decisions are soundly based;

vi) Co-ordinated long-term monitoring and research and the collection and sharing of marine-based biological, physical, social and economic data is fundamental;

vii) Regular, periodic review of the resources necessary for the long-term management of the marine and national parks within the Great Barrier Reef World Heritage Area will be undertaken; and

viii) Initiatives should be delivered through a concerted response across all levels of government with shared funding arrangements of joint Commonwealth-State initiatives agreed on a case-by-case basis.

People and relationships

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

Employee provisions

Accounting Policy

Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligation are to be settled directly.

Leave: The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the GBRMPA is estimated to be less than the annual entitlement for sick 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 GBRMPA'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 estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation: The GBRMPA staff are members of the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). The PSS is a defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance administered schedules and notes.

The GBRMPA makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The GBRMPA accounts for contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

Key management personnel remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Great Barrier Reef Marine Park Authority, directly or indirectly, including any director (whether executive or otherwise) of the entity, the Portfolio Minister, and any other relevant Government Minister. The Great Barrier Reef Marine Park Authority has determined the following people are the internal Key Management Personnel during the reporting period:

The total number of key management personnel that are included in the above table are 13 individuals (2018: 10 individuals).

The above key management personnel remuneration is internal only, and excludes the remuneration and other benefits of the Portfolio Minister, and any other relevant Government Ministers. Ministerial remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

Mr Dave Stewart is not remunerated by the GBRMPA, as the Director General of the Department of the Premier and Cabinet his position on the board is held as a Queensland Government representative. Mr Stewart's Queensland Government position has no controlling interest in the Joint Field Management Program partnership that the GBRMPA maintains with the Department of Environment and Science.

Ms Anne Leo is employed by the Department of the Environment and Energy, and is seconded to the GBRMPA.

Related party disclosures

Related party relationships

The GBRMPA is an Australian Government controlled entity. Board members are appointed under section 10 of the Great Barrier Reef Marine Park Act 1975. Board members and their related parties may hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities.

Given the breadth of Government activities, related parties may transact with the Government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of Environmental Management Charge, receipt of Medicare rebate or Higher Education loans. These transactions have not been separately included in this note. Certain entities transacted with the GBRMPA in the reporting period. The terms and conditions of those transactions with key management personnel and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on a similar transactions to non-related entities on an arm's length basis.

Loans to Key Management Personnel or Key Management Personnel-Related Entities

In 2018-19, no loans were made to key management personnel or key management personnel-related entities (2017-18: Nil).

Other Transactions with Key Management Personnel or Key Management Personnel-Related Entities

The GBRMPA has an ongoing contractual arrangement with the Reef Rainforest and Research Centre (RRRC) for Crown of Thorns Starfish control, with whom a related party to a key management personnel (GBRMPA Board Member from 1/7/2018 to 24/9/2019) is part of the board as a non-executive Director. All transactions were made on an arm's length basis.

Managing uncertainties

This section analyses how the Great Barrier Reef Marine Park Authority manages financial risks within its operating environment.

Contingent assets and liabilities

Contingent Assets

The GBRMPA has no Contingent Assets for the 2018-19 financial year (2017-18: Nil).

Contingent Liabilities

The GBRMPA has no Contingent Liabilities for the 2018-19 financial year (2017-18: Nil).

Unquantifiable Contingent Assets

The GBRMPA has no Unquantifiable Contingent Assets for the 2018-19 financial year (2017-18: Nil).

Unquantifiable Contingent Liabilities

The GBRMPA has no Unquantifiable Contingent Liabilities for the 2018-19 financial year (2017-18: Nil).

Significant Remote Contingencies

The GBRMPA has no Significant Remote Contingencies for the 2018-19 financial year (2017-18: Nil).

Administered - contingent assets and liabilities

Contingent Assets and Liabilities

The GBRMPA has no Contingent assets and Liabilities for the 2018-19 financial year (2017-18: Nil).

Accounting Policy

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

Financial instruments

Accounting Policy

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

1. financial assets at fair value through profit or loss;
2. financial assets at fair value through other comprehensive income; and
3. 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:

1. the financial asset is held in order to collect the contractual cash flows; and
2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

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.

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 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.

Supplier and other payables 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).

Administered - financial instruments

Fair value measurements

Accounting policy

The GBRMPA deems transfers between levels of the fair value hierarchy to have occurred at 30 June 2019.

Administered - fair value measurements

Other information

This section analyses how the Great Barrier Reef Marine Park Authority manages financial risks within its operating environment.

Aggregate assets and liabilities

Administered - aggregate assets and liabilities