Go to top of page

Notes - 1.2 Own-Source Revenue and Gains

2020

2019

Own-Source Revenue

$'000

$'000

Note 1.2A: Revenue from Contracts with Customers

Construction works1

396

727

Rendering of services

412

534

Sale of goods

3

2

Total revenue from contracts with customers

811

1,263

1. Revenues and Expenses Relating to Assets Under Construction for Third Parties

Reciprocal Funding

Where funding for construction of an asset is provided by a related Commonwealth entity or an external thirdparty who takes control of the finished asset, the transaction is reciprocal in nature. The NCA recognisesdepartmental revenue and expense in accordance with AASB 111 Construction Contracts using the percentage of completion method. Contract revenue is matched to contract expense incurred in reaching the stage of completion. Unexpended funding remains as a payable (refer Note 3.3B) on the departmental statement of financial position at the end of the reporting period in accordance with AASB 1004 Contributions.

Non-reciprocal Funding

Where the NCA retains control of the asset at completion and funding is received from a party other than a Commonwealth entity, the transaction is non-reciprocal. The NCA recognises the full contribution as departmental revenue in the year of receipt in accordance with AASB 1004 Contributions and recognises departmental expenses as the asset is constructed in accordance with AASB 111 Construction Contracts.

Disaggregation of revenue from contracts with customers

Construction works

396

727

Events revenue

403

315

Cost recovery – electricity usage

9

219

National Capital Exhibition merchandise sales

3

2

Accounting Policy

Revenue from the sale of goods is recognised when control has been transferred to the buyer.

Revenue is recognised when all these five steps have occurred:

1. Identify the contract;

2. Identify the performance obligations;

3. Determine and measure the consideration;

4. Allocate the consideration to the performance obligations; and

5. Satisfy the performance obligations.

Below is a list of specifics for contracts with customers:

  Goods or services must be provided to a customer – where they are actually delivered to a third party the customer is still the “contracting” party, and this qualifies;

  There must be an enforceable agreement – enforceable by legal or equivalent means; and

  The agreement must have sufficiently specific performance obligations – ideally clearly defined activities to be performed or goods to be delivered. Performance obligations may be implied. Acquittal processes or single-purpose charters are unlikely, by themselves, to be sufficiently specific.

The stage of completion of contracts at the reporting date is determined by reference to the proportion of costs incurred to date compared to the estimated total costs of the transaction.

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 collectability of the debt is no longer probable.