The National Faster Rail Agency (NFRA) was established on 1 July 2019 as an Executive Agency under Section 65 of the Public Service Act 1999 to deliver on the Government’s commitment of fast rail connections between major capital cities and their regional centres. This included a
$2 billion commitment to deliver faster rail between Melbourne and Geelong, and the development of business cases for identified faster rail corridors.
NFRA is an Australian Government controlled not-for-profit entity.
The continued existence of NFRA in its present form and with its present programmes is dependent on Government policy and on continuing funding by Parliament for NFRA’s administration and programmes.
The 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 (PGPA Act). The financial statements have been prepared in accordance with:
- Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) and
- 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.
No comparatives are presented due to the agency being established on 1 July 2019.
Financial Instruments and Fair Value
NFRA holds simple financial instruments that are limited to:
- Financial assets that include cash on hand (Note 2.1A) and receivables for employee transfers (Note 2.1B).
- Financial liabilities that include trade creditors and accruals (Note 2.2A).
All financial instruments are measured at amortised cost. There were no gains or losses reported with respect to financial instruments.
NFRA did not report any assets or liabilities measured at fair value in 2019-20.
Budget comparatives have not been disclosed for the purposes of AASB 1055 Budgetary Reporting as budgeted financial statements were not presented to Parliament for the 2019-20 financial year.
New Australian Accounting Standards
The following new standards were issued prior to the signing of the statement by the Chief Executive Officer and Chief Financial Officer, were applicable to the current reporting period, but had no material effect on NFRA’s financial statements.
Nature of change in accounting policy, transitional provisions, and adjustment to financial statements
AASB 15 Revenue from Contracts with Customers
AASB 1058 Income of Not-for-Profit Entities
These standards relate to the recognition of revenue by NFRA.
AASB 15 and AASB 1058 apply to reporting periods commencing on or after 1 January 2019 for not-for-profit entities and replaced the requirements of AASB 118 Revenue and AASB 1004 Contributions. As NFRA was established on 1 July 2019 it adopted AASB 15 and AASB 1058 from its inception.
AASB 16 - Leases
AASB 16 applies to reporting periods commencing on or after 1 January 2019 and requires recognition of a right-of-use asset and lease liability where a specific underlying leased asset can be identified. As NFRA was established on 1 July 2019, it adopted the AASB 16 from its inception.
An assessment has been undertaken and confirmed that agreements for office accommodation do not represent leases and therefore are accounted for as supplier expenses. No material changes were made to the NFRA financial statements as a result of adoption of the new leases standard.
NFRA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses, assets and liabilities are recognised net of GST except:
- where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
- for receivables and payables.
Events After the Reporting Period
There are no known events occurring after the reporting period that would have a material impact on the financial statements.