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Financial statements for the period ended 30 June 2021

Statement by the Commissioners, Chief Executive and Manager Finance

In our opinion, the attached financial statements for the year ended 30 June 2021 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the National Transport Commission will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Commissioners.

Signature of Carolyn Walsh as the Chair. Signature of Gillian Miles as Chief Executive Officer and Commissioner. Signature of Duminda Senanayake as Manager Finance. All signatures dated 27 August 2021.

Statement of comprehensive income

For the period ended 30 June 2021

2021

2020

Budget

NET COST OF SERVICES

Notes

$

$

$

Expenses

Employee benefits

2.1A

7,129,496

7,030,115

6,880,000

Suppliers

2.1B

2,277,072

2,290,414

2,757,000

Finance costs

2.1C

62,487

69,513

62,000

Depreciation and amortisation

3.2A

807,283

744,013

676,000

Total expenses

10,276,338

10,134,055

10,375,000

Own-source Income

Own-source revenue

Interest on deposits

2.2A

1,016

4,961

6,000

Total own-source revenue

1,016

4,961

6,000

Net cost of services

(10,275,322)

(10,129,094)

(10,369,000)

Revenue from Government

2.2B

10,559,000

10,100,000

10,369,000

Surplus/(Deficit) attributable to the Australian Government

283,678

(29,094)

-

OTHER COMPREHENSIVE INCOME

Total comprehensive surplus/(deficit)

283,678

(29,094)

-

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Lesser vacancies during the year and recognition of prior service resulted in an increase in employee benefits. Changes to program resource requirements is the main factor for reduced spending in suppliers. The effect of lower interest rates is reflected in reduced interest income. Additional funding contributions from VIC and NSW post budget resulted in the variance in revenue.

Statement of financial position

As at 30 June 2021

2021

2020

Budget

Notes

$

$

$

ASSETS

Financial assets

Cash and cash equivalents

3.1A

3,317,929

2,505,539

2,634,000

Trade and other receivables

3.1B

116,660

33,888

34,000

Total financial assets

3,434,589

2,539,427

2,668,000

Non-financial assets1

Buildings

3.2A

2,911,037

3,337,043

2,911,000

Leasehold Improvements

3.2A

218,149

238,153

238,000

Plant and equipment

3.2A

927,247

992,021

942,000

Prepayments

65,719

62,034

62,000

Total non-financial assets

4,122,152

4,629,251

4,153,000

Total assets

7,556,741

7,168,678

6,821,000

LIABILITIES

Payables

Suppliers

3.3A

515,005

184,556

184,000

Other payables

3.3B

22,302

21,784

22,000

Total payables

537,307

206,340

206,000

Provisions

Employee provisions

4.1A

1,249,125

1,128,101

1,128,000

Total provisions

1,249,125

1,128,101

1,128,000

Interest bearing liabilities

Lease liability

3.4

3,091,215

3,438,821

3,091,000

Total interest bearing liabilities

3,091,215

3,438,821

3,091,000

Total liabilities

4,877,647

4,773,262

4,425,000

Net Assets

2,679,094

2,395,416

2,396,000

EQUITY

Retained surplus

2,679,094

2,395,416

2,396,000

Total Equity

2,679,094

2,395,416

2,396,000

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

The delay in receipt of invoices at year-end has resulted in higher than expected cash and payable balances. Expenses in June were higher than expected due to timing. This resulted in an increase in GST receivable, which lead to a variance in receivables.

Statement of changes in equity

For the period ended 30 June 2021

2021

2020

Budget

Notes

$

$

$

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period

2,395,416

2,304,903

2,396,000

Comprehensive income

Surplus/(Deficit) for the period

283,678

(29,094)

-

Transfers between equity component

119,607

-

Closing balance as at 30 June

2,679,094

2,395,416

2,396,000

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

119,607

-

Transfers between equity component

(119,607)

-

Closing balance as at 30 June

-

-

-

TOTAL EQUITY

Opening balance

2,395,416

2,424,510

2,396,000

Comprehensive income

Surplus/(Deficit) for the period

283,678

(29,094)

-

Closing balance as at 30 June

2,679,094

2,395,416

2,396,000

The above statement should be read in conjunction with the accompanying notes.

Cash flow statement

For the period ended 30 June 2021

2021

2020

Budget

Notes

$

$

$

OPERATING ACTIVITIES

Cash received

Receipts from Government

10,519,000

10,647,000

10,369,000

Interest

1,016

6,267

6,000

Net GST received

-

25,989

-

Total cash received

10,520,016

10,679,256

10,375,000

Cash used

Employees

6,924,801

6,688,091

6,880,000

Suppliers

2,033,218

2,687,752

2,757,000

Interest payments on lease liabilities

62,487

69,513

62,000

Net GST paid

43,016

-

-

Total cash used

9,063,522

9,445,356

9,699,000

Net cash from operating activities

1,456,494

1,233,900

676,000

INVESTING ACTIVITIES

Cash used

Purchase of non-financial assets

296,499

550,012

200,000

Total cash used

296,499

550,012

200,000

Net cash used by investing activities

(296,499)

(550,012)

(200,000)

FINANCING ACTIVITIES

Cash Used

Principal payments of lease liabilities

347,605

324,228

348,000

Total cash used

347,605

324,228

348,000

Net cash used by investing activities

(347,605)

(324,228)

(348,000)

Net increase in cash held

812,390

359,660

128,000

Cash and cash equivalents at the beginning of the reporting period

2,505,539

2,145,879

2,506,000

Cash and cash equivalents at the end of the reporting period

3.1A

3,317,929

2,505,539

2,634,000

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Additional contributions from Victoria reflected in the variance in receipts from Government. A reduction in consultancy expenditure and year-end payment cut-off has contributed to the variance in supplier payments.

Notes to and forming part of the financial statements

For the period ended 30 June 2021

Overview

The National Transport Commission (the NTC) is a national land transport reform agency that supports Australian governments to improve safety, productivity and environmental outcomes, provide for future technologies and improve regulatory efficiency.

The National Transport Commission Act 2003 (NTC Act) establishes the NTC and gives it the responsibility to develop, monitor and maintain uniform or nationally consistent regulatory and operational arrangements for road, rail and intermodal transport. The NTC is funded jointly by the Commonwealth, states and territories.

The NTC is a key contributor to the national reform agenda with accountability to the Infrastructure and Transport Ministers' Meeting (ITMM) and its advisory body, the Infrastructure and Transport Senior Officials’ Committee (ITSOC). The continued existence of the NTC in its present form and with its present programs is dependent on the NTC’s periodic review (in accordance with NTC Act) and on continued funding by the Commonwealth, state and territories.

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:

  • Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for; 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 are in accordance with 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 and values are rounded to the nearest dollar unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the statement of financial position when, and only when, it is probable that future economic benefits will flow to the NTC or a future sacrifice of economic benefits will be required, and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

New Accounting Standards

Adoption of New Australian Accounting Standard Requirements

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

Standard/ Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 1059 Service Concession Arrangements: Grantors

AASB 1059 became effective from 1 July 2020. The new standard addresses the accounting for a service concession arrangement by a grantor that is a public sector entity by prescribing the accounting for the arrangement from a grantor’s perspective. Prior to the issuance of AASB 1059, there was no definitive accounting guidance in Australia for service concession arrangements, which include a number of public private partnerships (PPP) arrangements. The AASB issued the new standard to address the lack of specific accounting guidance and based the content thereof broadly on its international equivalent: International Public Sector Accounting Standard 32: Service Concession Arrangements: Grantor. The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

There was no impact on the NTC on transition.

Taxation

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

Revenues, expenses and assets 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 were no events subsequent to the reporting period that have or will materially affect the ongoing structure and financial activities of the NTC

Note 2.1 Expenses

2021

2020

$

$

Note 2.1A: Employee benefits

Wages and salaries

6,573,401

6,488,544

Superannuation:

Defined contribution plans

556,095

541,571

Total employee benefits

7,129,496

7,030,115

Accounting Policy

Please refer note 4.

Note 2.1B: Suppliers

Goods and services supplied or rendered

Consultants

1,267,170

1,213,172

Travel

11,096

200,192

IT services

561,567

338,115

Lease outgoings

194,666

189,759

Communications

98,354

139,638

Printing

22,107

10,258

Conferences

9,027

19,118

Meetings

2,757

27,427

Insurance

14,717

13,000

Office supplies

5,223

10,490

Other

58,158

95,845

Total goods and services supplied or rendered

2,244,842

2,257,014

Goods and services supplied in connection with

Provision of goods – external parties

977,672

1,043,842

Rendering of services – external parties

1,267,170

1,213,172

Total goods and services

2,244,842

2,257,014

Other suppliers

Auditor’s remuneration

23,500

23,500

Workers’ compensation expenses

8,730

9,900

Total other suppliers

32,230

33,400

Total suppliers

2,277,072

2,290,414

The above lease disclosure should be read in conjunction with the accompanying notes 2.1C, 3.2A and 3.4

2021

2020

$

$

Note 2.1C: Finance Costs

Interest payments on lease liabilities

62,487

69,513

Total Finance Costs

62,487

69,513

The above lease disclosure should be read in conjunction with the accompanying notes 3.2A and 3.4

Note 2.2 Own-source revenue

2021

2020

$

$

Note 2.2A: Interest

Interest from deposits

1,016

4,961

Total interest

1,016

4,961

Accounting Policy

Interest revenue is recognised using the effective interest method

Note 2.2B: Revenue from government

Federal Government contribution approved by Transport and Infrastructure Council – related entities

3,629,000

3,535,000

State and Territory Government contributions approved by Transport and Infrastructure Council – external parties

6,740,000

6,565,000

Contributions from NSW and VIC for the National Rail Action Plan project

190,000

-

Total Revenue from Government

10,559,000

10,100,000

Accounting Policy

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the entity gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as Revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan.

Note 3.1 Financial assets

2021

2020

$

$

Note 3.1A: Cash and cash equivalents

Cash on hand or on deposit

3,317,929

2,505,539

Total cash and cash equivalents

3,317,929

2,505,539

Accounting Policy

Cash is recognised at its nominal amount. Cash and cash equivalents include:

· cash on hand, and

· demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

Note 3.1B: Trade and other receivables

Goods and services receivables in connection with:

Trade debtors

40,000

-

Total trade debtors

40,000

-

Other receivables:

Interest receivable

-

244

GST receivable from the Australian Taxation Office

76,660

33,644

Total other receivables

76,660

33,888

Total goods and services receivables

116,660

33,888

Receivables are expected to be recovered in:

No more than 12 months

116,660

33,888

Total trade and other receivables (net)

116,660

33,888

Receivables are aged as follows:

Not past due

116,660

33,888

Accounting Policy

Please refer note 5.1

Standard credit terms for trade receivables is 30 days

Note 3.2 Non-financial assets

Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment

Plant & Equipment

Leasehold Improvements

Buildings

Total

$

$

$

$

As at 1 July 2020

Gross book value

1,595,505

240,618

3,763,049

5,599,172

Accumulated depreciation

(603,484)

(2,465)

(426,006)

(1,031,955)

Total as at 1 July 2020

992,021

238,153

3,337,043

4,567,217

Additions:

by purchase

285,843

10,656

-

296,499

Depreciation expense

(350,617)

(30,660)

(426,006)

(807,283)

Asset write-downs:

Cost

281,567

-

-

281,567

Accumulated depreciation

(281,567)

(-)

(-)

(281,567)

Total as at 30 June 2021

927,247

218,149

2,911,037

4,056,433

Total as at 30 June 2021 represented by:

Gross book value

1,599,781

251,274

3,763,049

5,614,104

Accumulated depreciation

(672,534)

(33,125)

(852,012)

(1,557,671)

Total as at 30 June 2021

927,247

218,149

2,911,037

4,056,433

Carrying amount of right-of-use assets

2,911,037

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset Recognition Threshold

Purchases of leasehold improvements, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Lease Right of Use (ROU) Asset

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth leases as separate assts classes to corresponding assets owned outright but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 the NTC has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognising immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in NTC financial statements.

Revaluations

Following initial recognition at cost, leasehold improvements, plant and equipment were carried at fair value. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in surplus/deficit. Revaluation decrements for a class of assets are recognised directly in surplus/deficit to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

The nature of NTC’s assets which are plant and equipment, leasehold improvements and Right-of-use assets are not impacted by COVID-19.

Depreciation

Depreciable leasehold improvements, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NTC using, in all cases, the straight line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2021

2021

Leasehold improvements

Lease term

Not applicable

Plant and equipment

2 to 9 years

2 to 9 years

Impairment

All assets were assessed for impairment at 30 June 2021. Where indications of impairment exist, the asset’s recoverable amount is estimated, and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the NTC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Note 3.3 Payables

2021

2020

$

$

Note 3.3A: Suppliers

Trade creditors and accruals

515,005

184,556

Total suppliers

515,005

184,556

Supplier payables expected to be settled:

No more than 12 months – external parties

515,005

184,556

Total suppliers

515,005

184,556

Settlement was usually made within 30 days.

Note 3.3B: Other payables

Other

22,302

21,784

Total other payables

22,302

21,784

Other payables expected to be settled

No more than 12 months

22,302

21,784

Total other payables

22,302

21,784

Accounting Policy

Suppliers and other payables are recognised at amortised cost. Liabilities are recognised to the extent of the goods and services received.

Note 3.4 Interest Bearing Liabilities

2021

2020

$

$

Lease liabilities

3,091,215

3,438,821

Total leases

3,091,215

3,438,821

Total cash outflow for leases for the year ended 30 June 2021 was $347,605 (2020: $324,228)

Maturity analysis – contractual undiscounted cash flows

Within 1 year

427,047

410,092

Between 1 to 5 years

1,890,812

1,816,393

More than 5 years

971,314

1,472,780

Total leases

3,289,173

3,699,265

The above lease disclosure should be read in conjunction with the accompanying notes 12.1C and 3.2A

Accounting Policy

For all new contracts entered into, the NTC considers whether the contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. Once it has been determined that a contract is, or contains a lease, the lease liability is initially measured at the present value of the lease payments unpaid at the commencement date, discounted using the interest rate implicit in the lease, if that rate is readily determinable, or the department’s incremental borrowing rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification to the lease. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset or profit and loss depending on the nature of the reassessment or modification

Note 4.1 Employee provisions

2021

2020

$

$

Note 4.1A: Employee provisions

Leave

1,249,125

1,128,101

Total employee provisions

1,249,125

1,128,101

Accounting policy

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measure as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the NTC’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to staff members’ years of service at the NTC. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

Contributions are made by the NTC to employee superannuation funds and are charged as expenses when incurred.

The liability for superannuation recognised at 30 June 2021 represents outstanding contributions for the final month of the year.

Note 4.2 Key management personnel remuneration

Key management personnel are those having authority and responsibility for planning, directing and controlling the activities of the National Transport Commission. The National Transport Commission has determined the key management personnel to be the Chief Executive and the Executive Leaders. Key management personnel remuneration is reported in the table below.

Name

Position

Term as Key Management Personnel

Carolyn Walsh

Chair

Full year

Nola Bransgrove

Deputy Chair

Full year

Neil Scales

Commissioner

Full year

Reece Waldock

Commissioner

Full year

Simon Atkinson

Commissioner

Part-year – Appointed 9/10/2020

Gillian Miles

Chief Executive Officer and Commissioner

Full year

Michael Hopkins

Executive Leader, Strategy and Engagement

Part-year – Ended 30/04/2021

Graham Giannini

Executive Leader, Business and Resources

Full year

Sandra McKay

Executive Leader, Facilitated Reform

Full year

Dimi Rigas

Executive Leader, Strategy & Govt Relations

Part-year – Appointed 15/06/2021

Mandi Mees

A/Executive Leader, Regulatory Reform

Full year

Paul Davies

Marcus Burke

Ron Grasso

Executive Leader, Productivity

Executive Leader, Future Technologies

Executive Leader, Business and Collaboration

Part-year – Ended 19/03/2021

Part-year – Ended 17/03/2021

Part-year – Ended 17/03/2021

2021

2020

$

$

Short-term employee benefits

1,642,483

1,724,292

Post-employment benefits

160,648

167,629

Other long-term employee benefits

30,476

51,044

Termination benefits

-

71,281

Total key management personnel remuneration expenses

1,833,607

2,014,246

The total number of key management personnel that are included in the above table are 14 (2020 :14)

Note 4.3 Related party disclosures

Related party relationships:

The National Transport Commission is an Australian Government controlled entity. Related parties to NTC are the Commissioners and Key Management Personnel including the Executive.

Transactions with related parties:

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of paid parental leave payments or higher education loans. These transactions have not been separately disclosed in this note.

Other than the transactions with the government sector mentioned above, there were no related party transactions during the year.

Note 5.1 Financial instruments

2021

2020

$

$

5.1A Categories of financial instruments

Financial Assets

Loans and receivables

Cash and cash equivalents

3,317,929

2,505,539

Receivables for goods and services

40,000

-

Carrying amount of financial assets

3,357,929

2,505,539

Financial Liabilities

Suppliers payable

515,005

184,556

Carrying amount of financial liabilities

515,005

184,556

Accounting Policy

Financial assets

In accordance with AASB 9 Financial Instruments, NTC classifies its financial assets in the following categories:

  1. financial assets at fair value through profit or loss;
  2. financial assets at fair value through other comprehensive income; and
  3. financial assets measured at amortised cost.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets at fair value through profit or loss.

Receivables

Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘receivables’. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Financial Liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Supplier are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are recognised when settlement is greater than remote.

The NTC has no contingent liabilities, assets or any significant contingencies for the year ended 30 June 2021. (2020: Nil)

2021

2020

$

$

5.1B Net gains or losses on financial assets

Cash and cash equivalents

Interest revenue (Note 2.2A)

1,016

4,961

Net gain from cash and cash equivalents

1,016

4,961

Net gain from financial assets

1,016

4,961

5.1C Fair value of financial instruments

Fair Value

2021

Fair Value

2020

$

$

FINANCIAL ASSETS

Cash and cash equivalents

3,317,929

2,505,539

Receivables for goods and services

40,000

-

Total

3,357,929

2,505,539

FINANCIAL LIABILITIES

Suppliers payable

515,005

184,556

Total

515,005

184,556

Note 6.1 Current / non-current distinction for assets and liabilities

6.1A: Current/non-current distinction for assets and liabilities

2021

2020

$

$

Assets expected to be recovered in:

No more than 12 months

Cash and cash equivalents

3,317,929

2,505,539

Trade and other receivables

116,660

33,888

Prepayments

65,720

62,034

Total no more than 12 months

3,500,309

2,601,461

More than 12 months

Buildings

2,911,037

3,337,043

Leasehold improvements

218,148

238,153

Plant and equipment

927,247

992,021

Total more than 12 months

4,056,432

4,567,217

Total assets

7,556,741

7,168,678

Liabilities expected to be settled in:

No more than 12 months

Suppliers

515,005

184,556

Other payables

22,302

21,784

Leases

372,082

347,605

Employee provisions

1,046,962

941,426

Total no more than 12 months

1,956,351

1,495,371

More than 12 months

Leases

2,719,133

3,091,216

Employee provisions

202,163

186,675

Total more than 12 months

2,921,296

3,277,891

Total liabilities

4,877,647

4,773,262