Overview

The financial statements are those of the Special Broadcasting Service Corporation (the "Corporation").

(a) The basis of preparation

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:

1. Public Governance, Performance and Accountability (Financial Reporting Rule) 2015 (FRR); and
2. 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, which is the Corporation’s functional currency and values are rounded to the nearest thousand dollars unless otherwise specified.

(b) New Accounting Standards

New and amended standards and interpretations

All new, revised or amending Standards and 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 Corporation’s financial statements. This includes adoption of AASB 9 Financial Instruments which resulted in a change to how the Corporation measures impairment of trade and other receivables.

Future Australian Accounting Standards Requirements

The following new, revised or amending Standards or Interpretations were issued by the Australian Accounting Standards Board prior to the signing of the statements by the Directors and Chief Financial Officer which may have an impact on the Corporation’s financial statements for future reporting periods:

* The Corporation’s expected initial application date is when the accounting standard becomes operative at the beginning of the Corporation’s reporting year.

All other new, revised or amending Standards or Interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material impact on the Corporation’s financial statements.

(c) Significant accounting judgements and estimates

In the process of applying the accounting policies, the Corporation has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

• Valuation of land and buildings as detailed in Note 2.2A.
• Program amortisation as detailed in Note 2.2B.
• Long service leave as detailed in Note 3.1.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting year.

(d) Taxation

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

(e) Foreign exchange

Transactions denominated in a foreign currency are converted at the effective exchange rate on the date of the transaction.

The Corporation enters into foreign currency hedging arrangements to protect its purchasing power in relation to foreign currency exposures. Expenditures denominated in foreign currencies are converted to Australian dollars at the exchange rates prevailing at the date of the transaction or at the hedged rate.

All the gains and losses are taken to profit or loss with the exception of forward exchange contracts that are classified as cash flow hedges used to hedge highly probable transactions. Gains and losses on cash flow hedges held at balance date are taken to equity.

(f) 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 Corporation.

(g) Changes to comparatives

Where appropriate, comparatives have been reclassified from the prior year to align to the current period presentation.