Accounting policy

Sale of goods and services

Revenue from the sale of goods is recognised when:

• the risks and rewards of ownership have been transferred to the buyer;
• the NLA retains no managerial involvement or effective control over the goods;
• the revenue and transaction costs incurred can be reliably measured; and
• it is probable that the economic benefits associated with the transaction will flow to the NLA.

Revenue from the sale of goods is reported on a net sale basis, which is calculated by deducting from gross sales the amount of actual product return received and where material, an amount estimated for anticipated product returns.

Rendering of services

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
• the probable economic benefits associated with the transaction will flow to the NLA.

The stage of completion of contracts at the reporting date is determined by reference to the proportion of services performed to date as a percentage of the total services to be performed.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at the end of the reporting period. Allowances for impairment are made when collectability of the debt is no longer probable.

Interest revenue

Interest revenue is recognised using the effective interest method.

Accounting Policy

Resources received free of charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration received in the course of the ordinary activities of the NLA are recognised as revenue at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority because of a restructuring of administrative arrangements.

Grant revenue

Grants are assessed for revenue recognition in accordance with AASB 1004 Contributions. Grant revenue will be recognised when the NLA obtains control of the contribution or right to receive the contribution; it is probable that the economic benefits comprising the contribution will flow to the NLA; and the amount of the contribution can be measured reliably. In all cases, the NLA will control contributions when these funds are deposited into the NLA bank account. In some circumstances, however control may occur earlier depending on the grant agreement.

Sale of assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.