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Note 3: Net Cash Appropriation Arrangements





Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations



Less: depreciation/amortisation expenses previously funded through revenue appropriation



Less: depreciation right-of-use assets



Plus: principal repayments - leased assets



Total comprehensive income (loss) - as per the Statement of Comprehensive Income



From 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

The inclusion of depreciation/amortisation expenses related to ROU leased assets and the lease liability principle repayment amount reflects the cash impact on implementation of AASB 16 Leases, it does not directly reflect a change in appropriation arrangements.