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Note 3: Net Cash Appropriation Arrangements

2020

2019

$'000

$'000

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

920

(2,929)

Less: depreciation/amortisation expenses previously funded through revenue appropriation

(4,090)

(3,785)

Less: depreciation right-of-use assets

(6,247)

-

Plus: principal repayments - leased assets

5,826

-

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

(3,591)

(6,714)

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.