Accounting policy for other income

Grants
Hearing Australia through its research division the National Acoustic Laboratories ('NAL') is a member of the HEARing Cooperative Research Centre ('CRC'). Through the CRC, the Australian Government provides funding for a variety of projects that advance the field of hearing and hearing healthcare. The above-mentioned CRC funding program, that was set up in July 2014, ended on the 30th of June 2019. Alternative sources of funding and new partnerships are being developed for future years.

The Australian Government provides additional grants to Hearing Australia for the funding of various activities including; i) Ongoing research and development into hearing health, rehabilitation and prevention program, ii) Activities related to on line hearing tests under the hearing services development program, and iii) Hearing assessment activities under the indigenous Australians health program.

Hearing Australia, through its research division NAL, also receives grants from a variety of external organisations to conduct research into hearing loss, diagnostics, outcomes, behaviours, technologies and preservation.

Grant income is recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate. Where grant monies are received in advance, a liability is initially recognised and subsequently recognised as income when the services have been performed. Refer to note 21 for more information on grant liabilities.

Royalties
Commercialisation of HEARing CRC projects has led to a number of patents and licence agreements. Hearing Australia, through NAL receives a share of the royalties. Royalty income is recognised by Hearing Australia when the funds are received. The end of the CRC program will also end the related royalties program. The last royalties under the CRC program will be paid to Hearing Australia during the year ended 30 June 2020.