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Note 1.2: Own-source revenue and gains

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1.2 Own -source revenue and gains 1, 2

  Notes 2016 2015

Own-source revenue

  $'000 $'000
1.2A: Sale of goods and rendering of services        
Sale of goods   146 236
Rendering of services   166,145 109,236
Total sale of goods and rendering of services   166,291 109,472

Accounting policy

Revenue from the sale of goods is recognised when:

  1. the risks and rewards of ownership have been transferred to the buyer;
  2. the Department retains no managerial involvement or effective control over the goods;
  3. the revenue and transaction costs incurred can be reliably measured; and
  4. it is probable that the economic benefits associated with the transaction will flow to the Department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date.

The revenue is recognised when:

  1. the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  2. the probable economic benefits associated with the transaction will flow to the Department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed during the financial year and at end of the reporting period. Impairment allowances are made when collectability of the debt is no longer probable.

1.2B: Interest revenue – deposits   189

Accounting policy

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

1.2C: Special account receipts   829 907

Gains

1.2D: Other gains 3      
Resources received free of charge – Australian National Audit Office   491 470
Resources received free of charge – Department of Immigration and Border Protection   148
    639 470

Accounting policy

Resources received free of charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gain depending on their nature. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another government agency or authority as a consequence of a restructuring of administrative arrangements (refer Note 8.1).

1.2E: Revenue from Government – departmental appropriations   194,013 225,683

Accounting policy

Revenue from Government

Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when the Department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

Notes

1 On 15 December 2014, the Government announced that it would consolidate the Australian Government Solicitor (AGS) within the Attorney- General’s Department with effect from 1 July 2015. Revenue and expenses for the AGS have been consolidated into the Department’s financial statements for the first time in the 2015–16 financial year. As a consequence, both revenue and expenses may be materially different to the comparative shown in the 2014–15 financial year.

2 In accordance with the Administrative Arrangements Order of 21 September 2015, the Classification, Copyright and Arts and Cultural Development programs and functions were transferred to the Department of Communications and the Arts with effect from 1 November 2015. Accordingly, amounts shown for 2015–16 include revenue and expenses for these functions up to 31 October 2015 and may be materially different to the comparative shown in the 2014–15 financial year.

3 The Australian National Audit Office provides audit services that are funded from government appropriation and the amount of $0.491m reflects the value of these services to the Department. Department of Immigration and Border Protection staff were seconded to the Department during the financial year, and the amount of $0.148m reflects the value of these services provided to the Department.

 

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