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Note 12: Other information

Note 12A: Aggregate assets and liabilities

2020

$’000

2019

$’000

Assets expected to be recovered in:

No more than 12 months

77,807

39,721

More than 12 months

15,761

369

Total asset

93,568

40,090

Liabilitiesexpected to be settled in:

No more than 12 months

29,451

17,239

More than 12 months

1,871

1,860

Total liabilities

31,322

19,099

Note 12B: Budget variances commentary

General commentary

The following provides explanations of major variances between Tourism Australia’s original budget estimates, as published in the 2019-20 Portfolio Budget Statements (PBS) and the final outcome for the financial year, as presented, in accordance with the Australian Accounting Standards. Major variances are those relevant to an analysis of Tourism Australia's performance, not merely on numerical differences between the actual amounts and budget. The information presented below should be read in the context of the following:

  • The original budget was prepared before the 2019 final outcome could be known. As a consequence, the opening balance of the statement of financial position was estimated and in some cases variances between the 2020 final outcome and budget estimates can in part be attributed to unanticipated movement in the prior year period balances;
  • There are a number of items not incorporated into PBS estimates due to their unpredictable, uncontrollable and/or unplanned nature; and
  • The Budget is not audited.

Statement of comprehensive income:

  • PBS estimate of suppliers payments have been presented in the format of suppliers and other expenses in the statements. The combined total of these two categories was $17,514k lower than the budget due to reduced operational activities stemming from COVID-19.
  • COVID-19 led to the cancellation of all major events such as Australian Tourism Exchange and therefore reduced revenue from industry events and joint marketing partnership.
  • Impairment of assets includes impairment of Matesong asset due to Bushfire and COVID-19. Please refer below to the explanation given on Intangibles.

Statement of Financial Position

  • Cash and cash equivalents were higher than budget due to increased bushfire recovery funding and partial unspent budget at the year end.
  • Plant and equipment is lower than budget due to less IT equipment being purchased due to reduced operational activity.
  • Buildings - Right-of-use asset was unbudgeted. Tourism Australia's initial adoption of AASB 16 Tourism Australia has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application.
  • Intangibles is lower than budget due to a major impairment of Matesong campaign assets during the year. The assets were produced in December 2019. An impairment test was conducted during the bushfire disaster that significantly impacted the Australian Tourism industry. Tourism Australia assessed that the campaign assets did not have enduring value to bring future benefit, therefore the assets were written off during the year.
  • Total payables is lower than budgeted due to reduction in lease incentives as per AASB16.

Statement of Cash Flows:

  • Total cash received was greater than budget due to increased Bushfire recovery funding which was largely unspent due to COVID-19.
  • Reduced operational activities led to total cash used for suppliers less than budget during the year.
  • Cash used in investing activities are higher than budget because of higher capital investment in producing the campaign assets.