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Overview

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:
a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR)
b) 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.

New Accounting Standards

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

All new, revised, amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect on the NFSA’s financial statements.

AASB 15 Revenue from Contracts with Customers

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised.

The application of AASB 15 has not had an impact on the financial statements.

AASB 16 Leases

AASB 16 became effective on 1 July 2019. This new standard has replaced AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease and Interpretation 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. AASB 16 substantially carries forward the lessor accounting in AASB 117, with the distinction between operating leases and finance leases being retained. The details of the changes in accounting policies, transitional provisions and adjustments are disclosed in the relevant notes to the financial statements.

Taxation

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

Events After the Reporting Period

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

Significant Estimates and Judgements

In the preparation of the financial statements, management adopts a number of estimates and judgements relating to the treatment of transactions and balances under Australian Accounting Standards. Individually significant estimates and judgements are outlined in the notes to which they relate:

Significant accounting estimate/judgement

Note

Valuation of non-financial assets

2.2

Impact of COVID-19

The NFSA has been impacted by the COVID-19 pandemic with a decrease in external revenue due to exhibitions closing and the cancellation of public events. Management has assessed the impact on the financial statements, including the potential for movements in the fair value of non-current assets and the potential for impairment of other assets such as receivables and assessed no material impact.

Impact of Severe Weather Events

The NFSA has been impacted by the bushfires and hailstorms early in the 2020 calendar year due to the closure of exhibitions related to severe smoke conditions and insurance claims for damage to property including motor vehicles and buildings. The impact of these events has been included in the transactions and balances of these financial statements and has not been material. It is likely that future severe weather events will impact on the operations of the NFSA but are not expected to have a material impact.