Note 3. Departmental financial position 2017–18
This section analyses the APSC’s assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section, Note 5.
|
2018 |
2017 |
|
Trade and other receivables |
||
|
Goods and services |
1,576 |
1,149 |
|
Appropriation receivable |
15,359 |
20,372 |
|
GST receivable from the Australian Taxation Office |
525 |
455 |
|
Total trade and other receivables (gross) |
17,460 |
21,976 |
|
Less impairment allowance - Goods and services |
- |
(1) |
|
Total trade and other receivables (net) |
17,460 |
21,975 |
Credit terms for goods and services are within 30 days (2017: 30 days).
Accounting policy
Trade receivables are classified as ‘loans and receivables’. Loans and receivables are measured at face value less impairment.
|
Reconciliation of impairment allowance |
||
|
Opening balance |
(1) |
(1) |
|
Amounts written off |
- |
1 |
|
Amounts recovered and reversed |
1 |
- |
|
(Increase)/decrease recognised in net cost of services |
- |
(1) |
|
Closing balance |
- |
(1) |
Accounting policy
Trade receivables are assessed for impairment at the end of each reporting period.
Note 3.2: Non-financial assests
Reconciliation of the opening and closing balances of property, plant and equipment and intangibles for 2018
|
Buildings |
Plant and equipment |
Computer software |
Other Intangibles |
Total |
|
|
2018 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
|
As at 1 July 2017 |
|||||
|
Gross book value |
2,442 |
1,622 |
3,850 |
707 |
8,621 |
|
Accumulated depreciation, amortisation and impairment |
(1,619) |
(1,157) |
(2,632) |
(707) |
(6,115) |
|
Total as at 1 July 2017 |
823 |
465 |
1,218 |
- |
2,506 |
|
Additions – by purchase |
5,747 |
1,414 |
1,034 |
- |
8,195 |
|
Depreciation and amortisation |
(812) |
(334) |
(544) |
- |
(1,690) |
|
Disposals |
- |
(19) |
(12) |
- |
(31) |
|
Total as at 30 June 2018 |
5,758 |
1,526 |
1,696 |
- |
8,980 |
|
Total as at 30 June 2018 represented by |
|||||
|
Gross book value |
6,340 |
2,063 |
4,678 |
97 |
13,178 |
|
Accumulated depreciation, amortisation and impairment |
(582) |
(537) |
(2,982) |
(97) |
(4,198) |
|
Total as at 30 June 2018 |
5,758 |
1,526 |
1,696 |
- |
8,980 |
Property, plant and equipment and intangibles were assessed for impairment as at 30 June 2018. No indicators of impairment were identified (2017: a loss of $1,390,000). No property, plant and equipment and intangibles are expected to be disposed of within the next 12 months (2017: $274,000).
Revaluation of non-financial assets
Revaluations are conducted in accordance with the revaluation policy contained in this note. No revaluation was performed during 2018 (2017: nil). There was no revaluation increment (2017: nil). All increments and decrements, to the extent that they reverse a previous increment, are transferred to the asset revaluation reserve by asset class and included in the equity section of the statement of financial position. No decrements due to revaluation were expensed in 2018 (2017: nil).
Contractual commitments for the acquisition of property, plant, equipment and intangible assets
There are no significant contractual commitments for the acquisition of property, plant and equipment (2017: two commitments with a value of $5,002,000).
Accounting policy
Acquisition of assets
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.
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 property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases of property plant and equipment costing less than $2,000, or leasehold improvements costing less than $60,000, 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. This is particularly relevant to the provision for restoration obligations in property leases taken up by the APSC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the APSC’s leasehold improvements with a corresponding provision for restoration obligations recognised.
Revaluations
Following initial recognition at cost, property plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ 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 the surplus or deficit. Revaluation decrements for a class of assets are recognised directly in the surplus or deficit except 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.
Depreciation
Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives to the APSC using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
Asset class 2018 2017
Leasehold improvements Expected lease term Expected lease term
Property, plant and equipment 1 to 13 years 1 to 13 years
Impairment
All assets were assessed for impairment at 30 June 2018. 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.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
Intangibles
The APSC’s intangibles comprise intellectual property, purchased software and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses where the value of the asset exceeds $2,000 for purchased software and $60,000 for internally developed software and intellectual property.
Intangibles are amortised on a straight-line basis over their anticipated useful life. The useful lives of the APSC’s intangibles are between 2 to 10 years (2017: 2 to 10 years).
All intangible assets were assessed for impairment as at 30 June 2018.
|
2018 |
2017 |
|
|
Prepayments paid |
||
|
Suppliers |
561 |
560 |
|
Total prepayments paid |
561 |
560 |
No indicators of impairment were found for prepayments paid.
Note 3.3: Payables
|
2018 |
2017 |
|
Note 3.3a: Suppliers |
||
|
Trade creditors and accruals |
3,101 |
2,441 |
|
Operating lease rentals |
275 |
190 |
|
Total suppliers |
3,376 |
2,631 |
Note 3.3b: Prepayments received |
||
|
Rendering of services |
5,795 |
4,586 |
|
Total prepayments received |
5,795 |
4,586 |
Note 3.3c: Other payables |
||
|
Wages and salaries |
152 |
153 |
|
Superannuation |
26 |
26 |
|
Separations and redundancies |
536 |
109 |
|
Operating lease incentives |
- |
28 |
|
Other |
73 |
80 |
|
Total other payables |
787 |
396 |
Accounting policy
Suppliers and other payables 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). Supplier and other payables are recognised and derecognised upon trade date.
Operating lease rentals are expensed on a straight-line basis, which is representative of the pattern of benefits derived from the leased assets.
Prepayments received are recognised for payments received for services that are not yet fully performed. This is measured in accordance with the accounting policy in note 1.2a for own-source revenue.
The wages and salaries payable and superannuation payable represent outstanding contributions for a portion of the final fortnight of the financial year.
The APSC recognises a payable for separation and redundancy benefit payments when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.
Operating lease incentives taking the form of lessor contributions and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.
Note 3.4: Other provisions
|
2018 |
2017 |
|
|
As at 1 July |
285 |
280 |
|
Additional provisions made |
95 |
- |
|
Amounts used |
(139) |
- |
|
Unwinding of discount or change in discount rate |
4 |
5 |
|
Total as at 30 June |
245 |
285 |
|
The APSC currently has two (2017: two) leasing agreements which have provisions requiring the APSC to restore the premises to their original condition at the conclusion of the lease. The APSC has made provisions to reflect the present value of these obligations. |
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There was no revaluation of the restoration obligations (2017: no revaluation).