Model Annual Report
Department
For the year ended 30 June 2015
Model Annual Report
Department – 30 June 2015
Foreword
This Model Annual Report has been prepared as a guide and includes the minimum annual reporting
requirements of the Financial Management Act 2006 and Treasurer’s instructions. However, agencies should
be aware that the Models are for general use and are not intended to cover every potential circumstance.
Other methods of presenting financial statements may also be suitable.
Further reporting requirements are specified in the Public Sector Commission’s Annual Reporting Framework
available at: http://www.publicsector.wa.gov.au/
30.06.2015
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Model Annual Report
Department – 30 June 2015
Table of Contents
Statement of Compliance.................................................................................................................................. 4
Overview ............................................................................................................................................................. 5
Executive Summary......................................................................................................................................... 5
Operational Structure ...................................................................................................................................... 5
Performance Management Framework ........................................................................................................... 8
Outcome Based Management Framework.................................................................................................. 8
Changes to Outcome Based Management Framework .............................................................................. 8
Shared Responsibilities with Other Agencies ............................................................................................. 8
Agency Performance ......................................................................................................................................... 9
Report on Operations ...................................................................................................................................... 9
Actual Results versus Budget Targets ........................................................................................................ 9
Significant Issues Impacting the Agency ...................................................................................................... 11
Disclosures and Legal Compliance ............................................................................................................... 12
Financial Statements ..................................................................................................................................... 12
Certification of Financial Statements ......................................................................................................... 12
Statement of Comprehensive Income ....................................................................................................... 13
Statement of Financial Position ................................................................................................................. 15
Statement of Changes in Equity ................................................................................................................ 16
Statement of Cash Flows .......................................................................................................................... 17
Schedule of Income and Expenses by Service ......................................................................................... 19
Schedule of Assets and Liabilities by Service ........................................................................................... 20
Summary of Consolidated Account Appropriations and Income Estimates .............................................. 21
Index of Notes to the Financial Statements ................................................................................................... 22
Notes to the Financial Statements ............................................................................................................ 25
Additional Key Performance Indicator Information ........................................................................................ 98
Ministerial Directions ................................................................................................................................... 100
Other Financial Disclosures ......................................................................................................................... 101
Governance Disclosures ............................................................................................................................. 102
Other Legal Requirements .......................................................................................................................... 102
Government Policy Requirements ............................................................................................................... 102
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Model Annual Report
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Reference
Statement of Compliance
FMA sec 63
TI 902
For year ended 30 June 2015
HON MICHAEL JACKSON
MINISTER FOR INFORMATION TECHNOLOGY
In accordance with section 63 of the Financial Management Act 2006, I hereby submit for
your information and presentation to Parliament, the Annual Report of the Model
Department for the financial year ended 30 June 2015.
The Annual Report has been prepared in accordance with the provisions of the Financial
Management Act 2006 and [any other relevant written law].
(Signature)
B. King
Accountable Authority
1 August 2015
Contacts
AASB 101.138(a)
Postal
Address
Electronic
PO Box 9999
1 William Street
Internet: www.department.wa.gov.au
Perth WA 6000
Perth WA 6000
Email: customer.service@department.wa.gov.au
Telephone: 61 8 6551 0000
Facsimile: 61 8 6551 1111
Commentary:
AASB 101 requires the following disclosures:


the domicile and legal form of the entity; and
its country of incorporation and the address of its registered office (or principal place
of business, if different from the registered office).
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Reference
Overview
TI 903
Executive Summary
Performance Highlights
TI 903(5)

The Department received a commendation from the State Government for its
services in providing assistance to public sector agencies to complement the
corporate services reforms.

Customer surveys indicated that 95 per cent of agencies rated the services
provided for the implementation of corporate services reforms as exceptional.

The Department’s research and development project on software development
for public sector accounting is on schedule and is expected to be completed in
2016.
Commentary:
Include a statement from the accountable authority that includes performance highlights
and/or other significant events impacting on the agency.
Operational Structure
The Model Department delivers services through the following divisions:
TI 903(6)

Information Technology;

Customer Relations; and

Corporate Services.
Commentary:
Under this section, agencies are required to disclose a summary of activities and
responsibilities of each division or its equivalent.
Enabling Legislation
AASB 101.138(a)
TI 903(6)(ii)
The Model Department was established as a department on 1 July 1990, under the
Public Sector Management Act 1994.
TI 903(6)
Responsible Minister
The Hon. Michael Jackson, BCom MLA, Minister for Information Technology.
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Reference
Organisational Structure
AASB 101.138(b)
Mission
To provide leadership, support and services necessary to ensure that Western
Australians have easy and affordable access to a diverse range of information
technology.
TI 903(6)
Organisational Chart
Chief Executive Officer
Corporate Services
Finance and
Administration
Information
Services
Customer Relations
Human
Resources
Product
Development
Information
Technology
Customer
Advice
Senior Officers
Dr Bill King PhD (Chief Executive Officer)
Mr King has extensive experience in corporate management and public sector
information technology.
Elliot James BCom CA (Director Information Technology)
Mr James has 7 years public sector management experience and 15 years corporate
advisory experience in the private sector.
Chris Fleming BCom FCPA (Director Corporate Services, Chief Finance Officer)
Mr Fleming has 17 years experience in public sector finance, in addition to experience in
the private sector.
Kevin Smith BA (Hons) (Director Customer Relations)
Mr Smith has 10 years experience in public sector customer relations.
TI 903(6)(v)
Administered Legislation
The Department assists the Minister for Information Technology in administration the
following Acts:
TI 903(6)(v)-(vii)

Information Technology Act 1951-1983; and

Information Protection Act 1959.
Commentary:
Include the name of and authority for establishment of each subsidiary, related and
affiliated body and information about the legislation administered pertaining to each
subsidiary and related body.
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Reference
Other Key Legislation Impacting on the Model Department’s
Activities
In the performance of its functions, the Model Department complies with the following
relevant written laws:

Auditor General Act 2006;

Contaminated Sites Act 2003;

Disability Services Act 1993;

Equal Opportunity Act 1984;

Financial Management Act 2006;

Freedom of Information Act 1992;

Industrial Relations Act 1979;

Minimum Conditions of Employment Act 1993;

Occupational Safety and Health Act 1984;

Public Sector Management Act 1994;

Salaries and Allowances Act 1975;

State Records Act 2000; and

State Supply Commission Act 1991.
Commentary:
In addition to the abovementioned legislation, where applicable agencies may consider
disclosing specialised legislation that impacts upon their area of operations. Although the
above information is not mandatory, listing the key legislation impacting on the agency’s
activities provides useful information to users.
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Reference
TI 904(2), 903(7)
Performance Management Framework
AASB 101.138(b)
Outcome Based Management Framework
Outcome 1
Sustainability of the provision of information
technology
Key Effectiveness Indicators
The proportion (%) of government agencies using sustainable
information technology plans
Service 1
Information Technology
Key Efficiency Indicator
Cost per sustainable IT plan
Outcome 2
The improvement to the level of information
technology for the public sector
Key Effectiveness Indicators
The proportion (%) of government agencies upgrading their
information technology
Service 2
Training and Assistance
Key Efficiency Indicator
(a) Clients assisted per staff member (client/staff ratio)
(b) Cost per hour of service delivered
Outcome 3
Improvement to the competitiveness of the
Western Australian technology industry
Key Effectiveness Indicators
(a) Gross value of goods and services produced
(b) Uptake of new technology (%)
Service 3
Competition Policy
Key Efficiency Indicator
(a) Cost per advisory program
(b) Cost per hour of service delivered
Commentary:
Include a description of the links between the relevant government goals, agency level
government desired outcomes and services.
Changes to Outcome Based Management Framework
The Model Department’s Outcome Based Management Framework did not change
during 2014-15.
Commentary:
Include a discussion of any changes to agency level government desired outcomes,
services and key performance indicators from the previous year. This segment should be
included even if there is a nil return.
Shared Responsibilities with Other Agencies
The Model Department did not share any responsibilities with other agencies in 2014-15.
Commentary:
Include a statement of which services are being delivered jointly with other agencies and
how the agency is contributing to other agencies’ government desired outcomes. This
segment should be included even if there is a nil return.
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Reference
Agency Performance
Report on Operations
FMA sec 61(1)(c)
TI 903(8)
Commentary:
The Report on Operations must be prepared in accordance with section 61(1)(c) of the
FMA and TI 903.
Include a brief discussion of agency performance, including references to key
achievements and other key highlights about agency performance during the year.
A brief discussion of the reason(s) for any material variations between actual
performance and the targets specified in the agency’s resource agreement, budget
statements, statement of corporate intent or any equivalent document should also feature
in this section, as well as the impact of any external factors.
Include any narrative necessary to explain the results and describe the agency’s
performance, including any material variations and the impact of any external factors.
TI 808(4)
Departments are required to adopt a format similar to that shown in the Guidelines to
TI 808.
Actual Results versus Budget Targets
Financial Targets
2014-15
Target(1)
$000
2014-15
Actual
$000
Variation(2)
Total cost of services (expense limit)
(sourced from Statement of Comprehensive
Income)
804,482
799,899
4,583(a)
Net cost of services
(sourced from Statement of Comprehensive
Income)
773,708
766,798
6,910(b)
1,363,158
1,463,809
100,651(c)
5,336
5,523
187
423
420
3
Total equity
(sourced from Statement of Financial Position)
Net increase / (decrease) in cash held
(sourced from Statement of Cash Flows)
Approved full time equivalent (FTE) staff level
$000
(1)
As specified in the Budget Statements.
(2)
Further explanations are contained in Note 42 ‘Explanatory statement’ to the financial statements.
(a)
The variation is mainly due to implementing tighter cost controls ($14,593,000), which was partially
offset by additional costs ($11,220,000) in hiring consultants to deliver services.
(b)
In addition to the explanation above regarding expenses, the variation was mainly due to an increase
in user charges and fees, and sales revenue ($2,050,000) as a result of better than expected
demand.
(c)
The variation is mainly due to a greater than expected asset revaluation increments for land and
buildings ($60,000,000) and infrastructure ($40,000,000).
Commentary:
More detailed information, including long term trends and supporting footnotes, may be
disclosed either in this section or in the section ‘Disclosures and Legal Compliance’. If
further information is disclosed elsewhere, a cross reference to the page number would
be required.
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Reference
Summary of Key Performance Indicators
2014-15
Target(1)
2014-15
Actual
Variation(2)
85%
86%
1%
$22,700
$21,950
$750
75%
76%
1%
Service 2: Training and Assistance
Key Efficiency Indicator(s):
Clients assisted per staff member
Cost per hour of service delivered
0.36
$5,000
0.39
$5,311
0.03
($311)
Outcome 3: Improvement to the competitiveness
of the Western Australian technology industry
Key Effectiveness Indicator(s):
Gross value of goods and services produced
Uptake of new technology (%)
$200m
66%
$206m
68%
$6m
2%
$19,300
$5,000
$18,900
$5,155
$400
($155)
Outcome 1: Sustainability of the provision of
information technology
Key Effectiveness Indicator(s):
The proportion (%) of government agencies
using sustainable information technology
plans
Service 1: Information Technology
Key Efficiency Indicator(s):
Cost per sustainable IT plan
Outcome 2: The improvement to the level of
information technology for the public sector
Key Effectiveness Indicator(s):
The proportion (%) of government agencies
upgrading their information technology
Service 3: Competition Policy
Key Efficiency Indicator(s):
Cost per advisory program
Cost per hour of service delivered
(1)
As specified in the Budget Statements.
Commentary:
More detailed information, including long term trends and supporting footnotes, may be
disclosed either in this section or in the section ‘Disclosures and Legal Compliance’. The
report on operations shall include any narrative necessary to explain the results and
describe the agency’s performance, including any material variations and the impact of
any external factors.
If further information is disclosed elsewhere, a cross reference to the page number would
be required.
Where there is no resource agreement, the key performance indicators approved under
TI 904 are to be used in this reporting process by reporting, at a minimum, a summary
assessment of actual performance relative to target performance as set in the budget
statements, statement of corporate intent or any equivalent document in accordance with
TI 903(8).
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Reference
Significant Issues Impacting the Agency
Current and emerging issues and trends
The rapid pace of technological advancement is leading to a reduction in agency costs
and creates opportunities to deliver enhanced services.
Economic and social trends
There is an expectation in society that services delivered by the Model Department will
be enhanced to take advantage of technological advances.
Changes in written law
There were no changes in any written law that affected the Department during the
financial year.
Likely developments and forecast results of operations
It is likely that Department operations will undergo a period of consolidation during 2016
as a result of the full impact of changes made during the 2014-15 financial year. The
most significant areas for change will be in:
TI 903(9)

continuation of the research and development project on software development
for public sector accounting. This project is expected to deliver significant cost
savings to the public sector; and

measures taken in the current period with respect to information technology
services should begin to deliver significant cost savings and greater sales
growth.
Commentary:
Include a brief description of current and emerging issues and trends impacting on the
agency’s operations, as well as the operations of any subsidiary and/or related bodies,
and how the agency and bodies intend to address them. This may include economic and
social trends and changes in any written law and significant judicial decisions affecting
the agency or bodies. Any likely developments in the operations of the agency or bodies
and the forecast results of those developments should also be disclosed, unless the
disclosure is likely to be prejudicial to the agency.
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Model Annual Report
Department - 30 June 2015
Reference
Disclosures and Legal Compliance
Financial Statements
FMA sec 62(2)
TI 947
Certification of Financial Statements
For the year ended 30 June 2015
The accompanying financial statements of the Model Department have been prepared in
compliance with the provisions of the Financial Management Act 2006 from proper
accounts and records to present fairly the financial transactions for the financial year
ended 30 June 2015 and the financial position as at 30 June 2015.
AASB 110.17
At the date of signing we are not aware of any circumstances which would render the
particulars included in the financial statements misleading or inaccurate.
(Signature)
C. Fleming
Chief Finance Officer
1 August 2015
(Signature)
B. King
Accountable Authority
1 August 2015
Commentary:
FMA sec 62(1)
Financial statements are to be prepared in accordance with the accounting standards
and other requirements issued by the AASB.
FMA sec 62(2)
Financial statements include any financial statements and information prescribed by the
Treasurer’s instructions and any other financial information required by a written direction
given by the Minister.
AASB 110.17
Disclose the date when the financial statements were authorised for issue and who gave
that authorisation. If the entity’s owners or others have the power to amend the financial
statements after issue, the entity shall disclose that fact.
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Model Annual Report
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Reference
FMA sec 61(1)(a),
62(1), TI 1102,
AASB 101.10(b),
81-105
Statement of Comprehensive Income
For the year ended 30 June 2015
AASB Framework
2015
$000
2014
$000
7
8
9
10
11
12
15
17
13
669,757
61,980
33,330
263
6,963
9,801
5,560
12,245
799,899
599,002
56,345
33,820
347
6,330
8,910
3,700
13,074
721,528
14
15
16
16,497
14,267
1,100
31,864
14,997
12,970
1,000
28,967
17
18
170
1,067
1,237
33,101
766,798
4,700
970
5,670
34,637
686,891
803,846
713,701
-
-
1,595
1,450
805,441
38,643
715,151
28,260
100,000
100,000
138,643
25,500
25,500
53,760
Note
COST OF SERVICES
AASB 101.85, 88,
89, 99, 102, 104
AASB 101.102
AASB 101.82(b)
AASB 101.85
AASB 101.85
AASB 101.98(c)
AASB 101.102
AASB 101.88, 89
AASB 101.82(a),
AASB 118.35
AASB 118.35(b)(i)(ii)
AASB 118.35(b)(i)
AASB 1004.18
AASB 118.35(b)(iii)
AASB 101.98(c)
AASB 1004.63(a)
TI 1102(11)(i),
AASB 1004.63(b)
TI 1102(11)(ii),
AASB 1004.18
TI 1102(11)(ii),
AASB 1004.62
AASB 101.85
AASB 101.81A(a)
AASB 101.81A(b)
AASB 101.81A(c)
Expenses
Employee benefits expense
Supplies and services
Depreciation and amortisation expense
Finance costs
Accommodation expenses
Grants and subsidies
Cost of sales
Loss on disposal of non-current assets
Other expenses
Total cost of services
Income
Revenue
User charges and fees
Sales
Commonwealth grants and contributions
Interest revenue
Other revenue
Total Revenue
Gains
Gain on disposal of non-current assets
Other gains
Total Gains
Total income other than income from State Government
NET COST OF SERVICES
Income from State Government
Service appropriation
19
Liabilities assumed
Assets transferred
Services received free of charge
Royalties for Regions Fund
Total income from State Government
SURPLUS/(DEFICIT) FOR THE PERIOD
OTHER COMPREHENSIVE INCOME
Items not reclassified subsequently to profit or loss
Changes in asset revaluation surplus
Total other comprehensive income
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
36
See also the ‘Schedule of Income and Expenses by Service’.
The Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
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Reference
Commentary:
Supplies and services – include administrative expenses.
Finance costs – include borrowing costs. AASB 123.5 defines borrowing costs as interest
and other costs incurred by an entity in connection with the borrowing of funds. Other
finance costs would include discounting expense incurred under AASB 5.17 and
AASB 137. The discounting of employee benefits should be recognised under employee
benefits expense rather than separately as a finance cost.
Cost of sales – Australian Accounting Standards do not allow the disclosure of a net
trading result in the Statement of Comprehensive Income. However, where immaterial,
sales and the cost of goods sold would be included under other revenue and other
expenses respectively.
Losses or gains on disposal of non-current assets or other assets - subject to materiality,
gains or losses may be displayed separately such as losses or gains on disposal of
non-current and other assets. Groups of similar transactions would normally be reported
on a net basis. Immaterial losses or gains can be included in other expenses or other
gains.
Assets transferred – This is for transfers made at the transferor agency’s discretion and
represents an expense to the transferor and revenue to the transferee.
Other comprehensive income – AASB 101.82A requires a separate line item for each
class of other comprehensive income which are grouped on the basis of whether or not
they will be reclassified subsequently to profit or loss. AASB 101.7 – Other
comprehensive income may also include gains and losses arising from translating the
financial statements of a foreign operation, gains and losses on remeasuring available for
sale financial assets and the effective portion of gains and losses on hedging instruments
in a cash flow hedge.
Surplus/(deficit) for the period – any reduction in service appropriation under the
Treasury’s Cash Management Policy resulting in a deficit for the period should be
explained in the Agency Performance section of the Annual Report.
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Reference
FMA sec 61(1)(a),
62(1),
AASB 101.10(a),
60-80
AASB 101.60, 66
AASB 101.54(i)
TI 1103(7)
AASB 101.54(g)
AASB 101.54(h)
TI 1103(7),
AASB 101.55
AASB 101.55
AASB 5.38,
AASB 101.54(j)
Statement of Financial Position
As at 30 June 2015
ASSETS
Current Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Inventories
Receivables
Amounts receivable for services
Other current assets
Non-current assets classified as held for sale
Note
2015
$000
2014
$000
37
20, 37
21
22
23
8,308
50
18,310
8,555
14,239
2,795
50
16,375
2,150
18,137
24
25
550
2,900
560
2,628
52,912
42,695
20, 37
21
22
23
60
75,933
50
47,925
26
27
29
24
739,933
632,490
455
1,448,871
1,501,783
648,766
601,077
1,008
60
1,298,886
1,341,581
31
32
33
34
35
2,787
600
2,400
20,115
-
2,040
650
7,970
14,077
-
25,902
24,737
2,205
9,867
12,072
37,974
2,220
1,458
3,678
28,415
1,463,809
1,313,166
100,960
305,500
1,057,349
1,463,809
88,960
205,500
1,018,706
1,313,166
Total Current Assets
AASB 101.60
AASB 101.54(g)
AASB 101.54(h)
TI 1103(7),
AASB 101.55
AASB 101.54(a)
AASB 101.54(a)
AASB 101.54(c)
AASB 101.55
AASB 101.60, 69
AASB 101.54(k)
AASB 101.54(m)
AASB 101.54(m)
AASB 101.54(l)
AASB 101.55
AASB 5.38,
AASB 101.54(p)
AASB 101.60, 69
AASB 101.54(k)
AASB 101.54(m)
AASB 101.54(l)
AASB 101.55
Non-Current Assets
Restricted cash and cash equivalents
Inventories
Receivables
Amounts receivable for services
Property, plant and equipment
Infrastructure
Intangible assets
Other non-current assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Payables
Borrowings
Amounts due to the Treasurer
Provisions
Other current liabilities
Liabilities directly associated with non-current assets
classified as held for sale
Total Current Liabilities
Non-Current Liabilities
Payables
Borrowings
Provisions
Other non-current liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
31
32
34
35
NET ASSETS
AASB 101.54(r)
AASB 101.54(r)
AASB 101.54(r)
EQUITY
Contributed equity
Reserves
Accumulated surplus/(deficit)
TOTAL EQUITY
36
See also the ‘Schedule of Assets and Liabilities by Service’.
The Statement of Financial Position should be read in conjunction with the accompanying notes.
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Reference
FMA sec 61(1)(a),
62
AASB 101.10(c),
106–110
Statement of Changes in Equity
For the year ended 30 June 2015
Contributed
equity Reserves
Note
$000
$000
36
33,650
180,000
Balance at 1 July 2013
AASB 108.19(b),
42(b),
AASB 101.106(b)
Changes in accounting policy or
correction of prior period errors
Restated balance at 1 July 2013
AASB 101.106(d)(i)
Surplus/(deficit)
AASB 101.106(d)(ii)
Other comprehensive income
AASB 101.106(a)
Total comprehensive income for the
period
AASB 101.106(d)(iii) Transactions with owners in their
capacity as owners:
Capital appropriations
Other contributions by owners
Distributions to owners
Total
Balance at 30 June 2014
Balance at 1 July 2014
Surplus/(deficit)
Other comprehensive income
AASB 101.106(a)
Total comprehensive income for the
period
AASB 101.106(d)(iii) Transactions with owners in their
capacity as owners:
Capital appropriations
Other contributions by owners
Distributions to owners
Total
Balance at 30 June 2015
AASB 101.106(d)(i)
AASB 101.106(d)(ii)
Accumulated
surplus/
(deficit)
$000
990,446
Total
equity
$000
1,204,096
33,650
-
180,000
25,500
990,446
28,260
-
1,204,096
28,260
25,500
-
25,500
28,260
53,760
65,000
1,500
(11,190)
55,310
88,960
205,500
1,018,706
65,000
1,500
(11,190)
55,310
1,313,166
88,960
-
205,500
100,000
1,018,706
38,643
-
1,313,166
38,643
100,000
-
100,000
38,643
138,643
12,000
12,000
100,960
-
-
305,500
1,057,349
12,000
12,000
1,463,809
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Commentary:
Changes in accounting policy or correction of prior period errors
An example of a voluntary change in accounting policy is an increase in the asset
capitalisation threshold. Refer to Guidelines in TI 1101.
Under AASB 108, voluntary changes in accounting policy and correction of prior period
errors are adjusted against the opening balances of each affected component of equity in
the comparatives. Note that changes in accounting policy under AASB 116 and
AASB 138 in respect to the revaluation of assets are not accounted for under AASB 108.
Changes to the revaluation model under these Standards are not applied retrospectively.
Balance at 1 July 2014
In accordance with AASB 108.24, under limited circumstances the current period may be
the beginning of the earliest period for which retrospective application is practicable for a
change in accounting policy. Refer also to AASB 108.19(b) and AASB 101.106(b).
30.06.2015
Page 16 of 102
Model Annual Report
Department - 30 June 2015
Reference
FMA sec 61(1)(a),
62
AASB 101.10(d),
Statement of Cash Flows
For the year ended 30 June 2015
AASB 107
TI 1101(7)(i)
2015
$000
2014
$000
761,659
12,000
18,137
791,796
673,242
65,000
7,688
(10,100)
735,830
Utilised as follows:
CASH FLOWS FROM OPERATING ACTIVITIES
Payments
Employee benefits
Supplies and services
Finance costs
Accommodation
Grants and subsidies
GST payments on purchases
GST payments to taxation authority
Other payments
(663,874)
(66,677)
(175)
(6,292)
(9,801)
(7,336)
(6,618)
(593,654)
(61,666)
(270)
(5,720)
(8,910)
(6,829)
(6,016)
Receipts
Sale of goods and services
User charges and fees
Commonwealth grants and contributions
Interest received
GST receipts on sales
GST receipts from taxation authority
Other receipts
Net cash provided by/(used in) operating activities
9,989
16,497
1,100
990
2,345
5,056
1,067
(724,719)
9,081
14,997
1,000
900
1,730
5,034
970
(650,253)
(58,727)
(96,992)
2,798
(55,929)
10,100
(86,892)
(8,035)
-
(1,090)
-
2,400
(5,635)
1,160
70
5,523
2,895
(1,245)
4,140
8,418
2,895
Note
CASH FLOWS FROM STATE GOVERNMENT
Service appropriation
Capital appropriations
Holding account drawdown
Non-retained revenue distributed to owner
Royalties for Regions Fund
Net cash provided by State Government
AASB 107.18
AASB 107.14(d)
AASB 107.14(c)
AASB 107.31
AASB 107.31
AASB 107.Aus 20.2
AASB 107.21
AASB 107.16(a)
AASB 107.16(b)
AASB 107.21
AASB 107.17(d)
AASB 107.17(c)
AASB 107.7
37
CASH FLOWS FROM INVESTING ACTIVITIES
Payments
Purchase of non-current assets
Receipts
Proceeds from sale of non-current assets
Net cash provided by/(used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payments
Repayment of borrowings
Other repayments
Receipts
Proceeds from borrowings
Other proceeds
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD
37
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
30.06.2015
Page 17 of 102
Model Annual Report
Department - 30 June 2015
Reference
Commentary:
Finance costs – are equivalent to borrowing costs. Any unwinding of discounts is
included in the Statement of Comprehensive Income as they are not cash flows.
Purchase of non-current assets – due to the change in capitalisation threshold where
assets below $5,000 are to be expensed, the cash flows under investing activities
represent the extent to which expenditure has been made for resources that are initially
recognised as an asset in the Statement of Financial Position. Therefore, expenditure on
items below $5,000 is to be classified as an operating activity.
Cash and cash equivalent assets transferred to/from an agency as part of a distribution
to/contribution by owners should be reported under ‘Cash flows from State Government’.
30.06.2015
Page 18 of 102
Model Annual Report
Department - 30 June 2015
Schedule of Income and Expenses by Service
For the year ended 30 June 2015
Information Technology
2015
2014
$000
$000
COST OF SERVICES
Expenses
Employee benefits expense
Supplies and services
Depreciation and amortisation expense
Finance costs
Accommodation expenses
Grants and subsidies
Cost of sales
Other expenses
Total cost of services
Training and Assistance
2015
2014
$000
$000
Competition Policy
2015
2014
$000
$000
General – Not Attributed
2015
2014
$000
$000
Total
2015
$000
2014
$000
294,693
29,062
12,595
263
3,095
4,028
3,606
7,582
354,924
263,585
26,420
12,780
347
2,814
3,662
2,400
8,095
320,103
214,322
19,250
12,060
2,475
3,806
1,653
849
254,415
191,753
17,500
12,237
2,250
3,460
1,100
907
229,207
160,742
13,668
8,675
1,393
1,967
301
3,814
190,560
143,664
12,425
8,803
1,266
1,788
200
4,072
172,218
-
-
669,757
61,980
33,330
263
6,963
9,801
5,560
12,245
799,899
599,002
56,345
33,820
347
6,330
8,910
3,700
13,074
721,528
-
-
16,497
14,267
1,100
1,067
170
14,997
12,970
1,000
970
4,700
Income
User charges and fees
Sales
Commonwealth grants and contributions
Other revenue
Gain on disposal of non-current assets
Total income other than income from
State Government
NET COST OF SERVICES
8,973
7,117
1,100
448
170
8,157
6,470
1,000
407
4,700
4,994
4,180
394
-
4,540
3,800
358
-
2,530
2,970
225
-
2,300
2,700
205
-
17,808
337,116
20,734
299,369
9,568
244,847
8,698
220,509
5,725
184,835
5,205
167,013
-
-
33,101
766,798
34,637
686,891
INCOME FROM STATE GOVERNMENT
Service appropriation
Liabilities assumed
Assets transferred
Services received free of charge
Royalties for Regions Fund
Total income from State Government
SURPLUS/DEFICIT FOR THE PERIOD
364,812
660
365,472
28,356
323,901
600
324,501
25,132
299,156
594
299,750
54,903
265,608
540
266,148
45,639
139,878
341
140,219
(44,616)
124,192
310
124,502
(42,511)
-
-
803,846
1,595
805,441
38,643
713,701
1,450
715,151
28,260
The Schedule of Income and Expenses by Service should be read in conjunction with the accompanying notes.
30.06.2015
Page 19 of 102
Model Annual Report
Department - 30 June 2015
Schedule of Assets and Liabilities by Service
As at 30 June 2015
Information Technology
2015
2014
$000
$000
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
NET ASSETS
Training and Assistance
2015
2014
$000
$000
Competition Policy
2015
2014
$000
$000
General – Not Attributed
2015
2014
$000
$000
Total
2015
$000
2014
$000
20,215
587,475
607,690
16,684
521,488
538,172
19,124
516,867
535,991
15,697
461,187
476,884
13,573
344,529
358,102
10,314
316,211
326,525
-
-
52,912
1,448,871
1,501,783
42,695
1,298,886
1,341,581
8,948
7,086
16,034
10,256
1,381
11,637
7,116
5,764
12,880
8,789
1,407
10,196
5,050
4,010
9,060
5,690
892
6,582
-
-
21,114
16,860
37,974
24,735
3,680
28,415
591,656
526,535
523,111
466,688
349,042
319,943
-
-
1,463,809
1,313,166
The Schedule of Assets and Liabilities by Service should be read in conjunction with the accompanying notes.
Commentary:
AASB 1052.15
Schedule of income and expenses by service
AASB 1052.16
Disclose income and expenses reliably attributable to each of the activities, showing separately each major class of income and expenses.
Schedule of assets and liabilities by service
Disclose the assets deployed and liabilities incurred that are reliably attributable to each of the activities identified in paragraph 15(a).
Where an agency is unable to reliably attribute assets and liabilities to major activities after making every reasonable effort to do so, this fact
should be disclosed together with a brief explanation.
Note: Where there is only one service it is not necessary to prepare these schedules. It is recommended that agencies provide a disclosure stating
there is only one service.
30.06.2015
Page 20 of 102
Model Annual Report
Department - 30 June 2015
AASB 1004.64,
TI 1102(12),
TI 945(3)
Summary of Consolidated Account Appropriations and Income Estimates
For the year ended 30 June 2015
Delivery of Services
Item X Net amount appropriated to
deliver services
Section 25 Transfer of service
appropriation
Amount Authorised by Other Statutes
- Salaries and Allowances Act 1975
Total appropriations provided to
deliver services
Capital
Item XX Capital appropriations
Administered Transactions
Item XX Administered grants,
subsidies and other transfer payments
Item XX Administered capital
appropriations
Total administered transactions
GRAND TOTAL
Details of Expenses by Service
Information Technology
Training and Assistance
Competition Policy
Total Cost of Services
Less Total Income
Net Cost of Services
Adjustments
Total appropriations provided to
deliver services
Capital Expenditure
Purchase of non-current assets
Repayment of borrowings
Adjustments for other funding sources
Capital appropriations
Details of Income Estimates
Income disclosed as Administered
Income
2015
Estimate
$000
2015
Actual
$000
Variance
$000
2015
Actual
$000
2014
Actual
$000
Variance
$000
802,950
803,646
696
803,646
713,501
90,145
-
-
-
-
-
-
150
200
50
200
200
-
803,100
803,846
746
803,846
713,701
90,145
11,000
12,000
1,000
12,000
65,000
(53,000)
1,085
1,085
-
1,085
998
87
1,085
815,185
1,085
816,931
1,746
1,085
816,931
998
779,699
87
37,232
363,774
261,790
178,918
804,482
(30,774)
773,708
29,392
354,924
254,415
190,560
799,899
(33,101)
766,798
37,048
(8,850)
(7,375)
11,642
(4,583)
(2,327)
(6,910)
7,656
354,924
254,415
190,560
799,899
(33,101)
766,798
37,048
320,103
229,207
172,218
721,528
(34,637)
686,891
26,810
34,821
25,208
18,342
78,371
1,536
79,907
10,238
803,100
803,846
746
803,846
713,701
90,145
48,000
8,035
(45,035)
11,000
58,727
8,035
(54,762)
12,000
10,727
(9,727)
1,000
58,727
8,035
(54,762)
12,000
96,992
1,090
(33,082)
65,000
(38,265)
6,945
(21,680)
(53,000)
5,929
5,929
5,995
5,995
66
66
5,995
5,995
5,130
5,130
865
865
Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation.
Note 42 ’Explanatory statement’ and Note 52 ‘Explanatory statement for Administered Items’ provide details of any significant variations
between estimates and actual results for 2015 and between the actual results for 2015 and 2014.
Commentary:
AASB 1004.57 requires that where activities are transferred from one government agency to another
government agency as a result of a restructure of administrative arrangements, the transferee government
agency must disclose in the notes to the financial statements the expenses and revenues attributable to the
transferred activities for the reporting period, showing separately those expenses and revenues recognised
by the transferor agency during the reporting period. This applies to all agencies except Gold Corp.
30.06.2015
Page 21 of 102
Model Annual Report
Department - 30 June 2015
Index of Notes to the Financial Statements
For the year ended 30 June 2015
Subject
Policy
Note
1
1
1
2
2(a)
2(b)
2(c)
2(d)
2(e)
2(e)
2(e)
2(e)
2(e)
2(e)
2(e)
2(e)
Disclosure Title of the Policy Note
Note
General
Australian Accounting Standards
General
General
Early adoption of standards
General
General
Summary of significant accounting policies
General statement
General
Basis of preparation
General
Reporting entity
General
47, 48
Contributed equity
General
19, 36
Income
Income
Income
Revenue
Income
Sale of goods
Income
Provision of services
Income
Interest
Income
19
Service appropriations
Income
Net appropriation determination
Income
Grants, donations, gifts and other non-reciprocal
contributions
Income
2(e)
Gains
Borrowing costs
Expense/Asset
2(f)
10, 32
Property, plant and equipment and infrastructure
Assets
2(g)
26, 27
Intangible assets
Assets
2(h)
29
Impairment of assets
Assets
2(i)
30
Non-current assets (or disposal groups) classified
Assets
2(j)
18, 25
as held for sale
Leases
Assets/Liability
2(k)
9, 10, 11,
26, 32, 39
Financial instruments
Assets/Liability
2(l)
43
Cash and cash equivalents
Assets
2(m)
37
Restricted cash and cash equivalents
Assets
2(m)
20, 37
Accrued salaries
Assets/Liability
2(n)
20, 31
Amounts receivable for services (Holding Account)
Assets
2(o)
23
Inventories
Assets
2(p)
15, 21
Receivables
Assets
2(q)
22
Payables
Liability
2(r)
31
Borrowings
Liability
2(s)
32
Amounts due to the Treasurer
Liability
2(t)
33
Provisions
Liability
2(u)
34
Liability
2(u)
7, 34
Provisions – employee benefits
Expense
2(u)
34
Provisions – other
Superannuation expense
Expense
2(v)
7
Assets and services received free of charge or for
Revenue/Asset
2(w)
19
nominal cost
Jointly controlled operations
General
2(x)
44
Comparative figures
General
2(y)
General
3
Other accounting policies that are not included in
this model
General
4
Judgements made by management in applying
accounting policies
General
5
Key sources of estimation uncertainty
This index does not form part of the financial statements.
30.06.2015
Page 22 of 102
Model Annual Report
Department - 30 June 2015
Index of Notes to the Financial Statements
For the year ended 30 June 2015
Subject
General
Policy
Note
6
General
6
General
General
6
6
General
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Income/Expense
Income
Income
Income/Expense
Income
Asset
Asset
Asset
Asset
Asset
Asset
Asset
Asset
Asset
Asset
Asset
Liability
Liability
Liability
Liability
Liability
Equity
Cash Flow
Expense
General
General
6
2(u)
2(f)
2(e)
2(e)
2(e), 2(j)
2(e)
2(m)
2(p)
2(q)
2(o)
2(j)
2(g)
2(g)
2(b), (g),
(j) (k), (l)
2(h)
2(i)
2(r)
2(s)
2(t)
2(u)
Disclosure
Note Title of the Disclosure Note
Disclosure of changes in accounting policy and
estimates
Initial application of an Australian Accounting
Standard
Voluntary changes in accounting policy
Future impact of Australian Accounting Standards
not yet operative
Changes in accounting estimates
7, 13, 34 Employee benefits expense
8 Supplies and services
9 Depreciation and amortisation expense
10 Finance costs
11 Accommodation expenses
12 Grants and subsidies
13 Other expenses
14 User charges and fees
15, 21 Trading profit
16 Commonwealth grants and contributions
18 Other gains
17 Net gain/(loss) on disposal of non-current assets
19 Income from State Government
20, 37 Restricted cash and cash equivalents
21, 15 Inventories
22 Receivables
23, 19 Amounts receivable for services (Holding Account)
24 Other assets
25 Non-current assets classified as held for sale
26 Property, plant and equipment
27 Infrastructure
28 Fair value measurements
29
30
31
32
33
34
35
36
37
38
39
40
Intangible assets
Impairment of assets
Payables
Borrowings
Amounts due to the Treasurer
Provisions
Other liabilities
2(d)
Equity
Notes to the statement of cash flows
Services provided free of charge
Commitments
Contingent liabilities and contingent assets
Events occurring after the end of the reporting
General
41 period
General
42 Explanatory statement
General
2(l)
43 Financial instruments
Financial risk management objectives and policies
General
2(l)
43(a)
Categories of financial instruments
General
2(l)
43(b)
Financial instrument disclosures
General
2(l)
43(c)
This index does not form part of the financial statements.
30.06.2015
Page 23 of 102
Model Annual Report
Department - 30 June 2015
Index of Notes to the Financial Statements
For the year ended 30 June 2015
Subject
General
General
General
General
External
External
General
Policy
Note
2(x)
Disclosure
Note
44
45
46, 13
47
48
49
50
50(a)
50(b)
50(c)
51
Title of the Disclosure Note
Jointly controlled operations
Remuneration of senior officers
Remuneration of auditors
2(c)
Related bodies
2(c)
Affiliated bodies
Special purpose accounts
Supplementary financial Information
Write-offs
Losses through theft, defaults and other causes
Gifts of public property
External
2(e)
Disclosure of administered income and expenses by
service
External
2(e)
52 Explanatory Statement for Administered Items
External
2(e)
53 Administered assets and liabilities
This index does not form part of the financial statements.
30.06.2015
Page 24 of 102
Model Annual Report
Department - 30 June 2015
Reference
Notes to the Financial Statements
For the year ended 30 June 2015
Note 1. Australian Accounting Standards
General
The Department’s financial statements for the year ended 30 June 2015 have been
prepared in accordance with Australian Accounting Standards. The term ‘Australian
Accounting Standards’ includes Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB).
The Department has adopted any applicable new and revised Australian Accounting
Standards from their operative dates.
TI 1101(6)
Early adoption of standards
The Department cannot early adopt an Australian Accounting Standard unless specifically
permitted by TI 1101 Application of Australian Accounting Standards and Other
Pronouncements. Partial exemption permitting early adoption of AASB 2015-7
Amendments to Australian Accounting Standards – Fair Value Disclosures of
Not-for-Profit Public Sector Entities has been granted. Aside from AASB 2015-7, there
has been no early adoption of any other Australian Accounting Standards that have been
issued or amended (but not operative) by the Department for the annual reporting period
ended 30 June 2015.
Commentary:
The Australian Accounting Interpretations are adopted through AASB 1048 Interpretation
of Standards and are classified into those corresponding to International Financial
Reporting Interpretations Committee (IFRIC) Interpretations and those only applicable in
Australia. This includes interpretations of both the AASB and the former Urgent Issues
Group (UIG).
The AASB has amended the Framework for the Preparation and Presentation of
Financial Statements (Framework) in December 2013. These amendments also withdraw
the Statement of Accounting Concept SAC 2. The AASB has continued to revise and
maintain accounting standards and those interpretations that are of particular relevance
to the Australian environment, especially those that deal more specifically with not-forprofit entity issues and/or do not have an equivalent IASB Standard or IFRIC
Interpretation.
AASB 101.114(b)
TI 1101
Note 2. Summary of significant accounting policies
AASB 1054.7-9
(a) General statement
The Department is a not-for-profit reporting entity that prepares general purpose financial
statements in accordance with Australian Accounting Standards, the Framework,
Statements of Accounting Concepts and other authoritative pronouncements of the AASB
as applied by the Treasurer's instructions. Several of these are modified by the
Treasurer's instructions to vary application, disclosure, format and wording.
The Financial Management Act 2006 and the Treasurer's instructions impose legislative
provisions that govern the preparation of financial statements and take precedence over
Australian Accounting Standards, the Framework, Statements of Accounting Concepts
and other authoritative pronouncements of the AASB.
Where modification is required and has had a material or significant financial effect upon
the reported results, details of that modification and the resulting financial effect are
disclosed in the notes to the financial statements.
30.06.2015
Page 25 of 102
Model Annual Report
Department - 30 June 2015
Reference
FMA sec 61(1)(a),
62(1), 78
Commentary:
AASB 101.112(a)
(b) Basis of preparation
AASB 101.117(a)
AASB 101.27
TI 954
The financial statements have been prepared on the accrual basis of accounting using
the historical cost convention, except for land, buildings and infrastructure which have
been measured at fair value.
AASB 108.13
The accounting policies adopted in the preparation of the financial statements have been
consistently applied throughout all periods presented unless otherwise stated.
AASB 121.9, 38
AASB 101.51(e)
TI 948
The financial statements are presented in Australian dollars and all values are rounded to
the nearest thousand dollars ($'000).
AASB 101.122
AASB 101.125
AASB 101.25
TIs mandate options and modify application of accounting standards to provide certainty,
consistency and appropriate reporting across the public sector. For example, AASB 116
requires land and buildings to be measured at either cost or fair value, while TI 954
mandates the fair value option.
Note 4 ‘Judgements made by management in applying accounting policies’ discloses
judgements that have been made in the process of applying the Department’s accounting
policies resulting in the most significant effect on amounts recognised in the financial
statements.
Note 5 ‘Key sources of estimation uncertainty’ discloses key assumptions made
concerning the future, and other key sources of estimation uncertainty at the end of the
reporting period, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
Commentary:
Going concern
AASB 101 requires management to assess the Department’s ability to continue as a
going concern when preparing financial statements. The Model does not illustrate an
entity encountering either a going concern issue or a deficiency of net assets. Where this
occurs the following wording may be appropriate:
“The financial statements have been prepared on a going concern basis which assumes
that the Department will be able to generate sufficient positive cash flows to meet its
financial obligations and realise its assets and extinguish its liabilities in the normal
course of business [narrate appropriate causal factors as applicable].” OR
“Notwithstanding the Department’s deficiency of net assets, the financial statements have
been prepared on the going concern basis. This basis has been adopted as the
Department is a State Government agency funded by Parliamentary appropriation from
the Consolidated Account.”
TI 951, 1105
AASB 127
(c) Reporting entity
AASB 1052.15(b)
Mission
The reporting entity comprises the Department and bodies included at Note 47 ‘Related
bodies’.
The Department's mission is to provide leadership, support and services to ensure that
Western Australians have easy and affordable access to a diverse range of information
technology.
The Department is predominantly funded by Parliamentary appropriations. It also
provides information technology services on a fee-for-service basis. The fees charged are
determined by prevailing market forces.
30.06.2015
Page 26 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1052.15(a)
Services
The Department provides the following services:
Service 1: Information Technology
Comprises various information technology services to the public sector.
Service 2: Training and Assistance
Comprises various training and assistance activities relating to information technology,
including seminars and training courses.
Service 3: Competition Policy
Ensures that the competitiveness of the technology industry in the public sector is
maintained and improved continuously.
The Department administers assets, liabilities, income and expenses on behalf of
Government which are not controlled by, nor integral, to the function of the Department.
These administered balances and transactions are not recognised in the principal
financial statements of the Department but schedules are prepared using the same basis
as the financial statements and are presented at Note 51 ‘Disclosure of administered
income and expenses by service’ and Note 53 ‘Administered assets and liabilities’.
Int 1038
TI 955
(d) Contributed equity
AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector
Entities requires transfers in the nature of equity contributions, other than as a result of a
restructure of administrative arrangements, to be designated by the Government (the
owner) as contributions by owners (at the time of, or prior to transfer) before such
transfers can be recognised as equity contributions. Capital appropriations have been
designated as contributions by owners by TI 955 Contributions by Owners made to
Wholly Owned Public Sector Entities and have been credited directly to Contributed
Equity.
The transfers of net assets to/from other agencies, other than as a result of a restructure
of administrative arrangements, are designated as contributions by owners where the
transfers are non-discretionary and non-reciprocal.
Commentary:
Repayable capital appropriations are recognised as liabilities. Refer to Note 19 ‘Income
from State Government’ for further commentary on the application of TI 955.
AASB 1004.54 – 56
Transfers of net assets to/from other agencies as a result of a restructure of
administrative arrangements are to be accounted for as distributions to owners and
contributions by owners respectively. Refer also to Note 36 ‘Equity’.
Framework 74-77
(e) Income
Revenue recognition
Revenue is recognised and measured at the fair value of consideration received or
receivable. Revenue is recognised for the major business activities as follows:
AASB 118.14, 35(a) Sale of goods
Revenue is recognised from the sale of goods and disposal of other assets when the
significant risks and rewards of ownership transfer to the purchaser and can be measured
reliably.
AASB 118.20, 35(a) Provision of services
Revenue is recognised by reference to the stage of completion of the transaction.
AASB 118.30(a)
Interest
Revenue is recognised as the interest accrues.
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Commentary:
Interest shall be recognised using the effective interest method, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial
asset to the net carrying amount of the financial asset, where applicable.
AASB 118.35(a)
Service appropriations
Service Appropriations are recognised as revenues at fair value in the period in which the
Department gains control of the appropriated funds. The Department gains control of
appropriated funds at the time those funds are deposited to the bank account or credited
to the ‘Amounts receivable for services’ (holding account) held at Treasury.
FMA sec 26(2)
Commentary:
See also Note 19 ‘Income from State Government’ for further information.
Net Appropriation Determination
The Treasurer may make a determination providing for prescribed receipts to be retained
for services under the control of the Department. In accordance with the most recent
determination, as quantified in the 2014-15 Budget Statements, the Department retained
$33.101 million in 2015 ($34.637 million in 2014) from the following:

proceeds from fees and charges;

sale of goods;

Commonwealth specific purpose grants and contributions;

one-off gains with a value of less than $10,000 derived from the sale of property
other than real property; and

other departmental revenue.
Grants, donations, gifts and other non-reciprocal contributions
AASB 1004.12
Revenue is recognised at fair value when the Department obtains control over the assets
comprising the contributions, usually when cash is received.
AASB 1004.12, 44
Other non-reciprocal contributions that are not contributions by owners are recognised at
their fair value. Contributions of services are only recognised when a fair value can be
reliably determined and the services would be purchased if not donated.
Royalties for Regions funds are recognised as revenue at fair value in the period in which
the Department obtains control over the funds. The Department obtains control of the
funds at the time the funds are deposited into the Department’s bank account.
Commentary:
AASB 1004.60(a)
TI 1102(8)
Where contributions recognised as revenues during the reporting period were obtained
subject to conditions that they will be expended in a specified manner, and those
expenditures had yet to be made at the end of the reporting period, the amounts and
nature of the contributions, and the conditions attaching to them are to be disclosed in the
notes.
AASB 1004.60(b),
(d)
Where contributions recognised as revenues during the reporting period were obtained
specifically for the provision of goods or services over a future period, the amounts and
nature of the contributions, and the periods to which they relate are to be disclosed.
AASB 1004.60(e)
Where contributions recognised as revenues in a previous reporting period were obtained
in respect of the current reporting period, the amounts and nature of the contributions are
to be disclosed.
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Framework 75-76
Gains
Realised and unrealised gains are usually recognised on a net basis. These include gains
arising on the disposal of non-current assets and some revaluations of non-current
assets.
AASB 123.8,
Aus 26.1
(f) Borrowing costs
Borrowing costs are expensed when incurred.
Commentary:
For agencies reporting WATC borrowings, borrowing costs for qualifying assets may be
capitalised net of any investment income earned on the unexpended portion of the
borrowings. Departments capitalising borrowing costs should adopt the following
paragraph instead of the above paragraphs:
AASB 123.7, 8
AASB 123.26(b)
“Borrowing costs for qualifying assets are capitalised net of any investment income
earned on the unexpended portion of the borrowings. Other borrowing costs are
expensed when incurred.
The capitalisation rate used to determine the amount of borrowing costs to be capitalised
is the weighted average interest rate applicable to the Department’s outstanding
borrowings during the year, in this case x.x% (2014: x.x%).”
A qualifying asset is an asset that takes a substantial period of time to get ready for its
intended use or sale. Other borrowing costs are expensed when incurred.
AASB 123 Borrowing Costs removes the option to immediately recognise an expense for
borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset. However, AASB 123 still allows not-for-profit public sector entities to
continue to choose whether to expense or capitalise borrowing costs relating to qualifying
assets.
AASB 116
(g) Property, plant and equipment and infrastructure
Capitalisation/expensing of assets
TI 1101(14)
Items of property, plant and equipment and infrastructure costing $5,000 or more are
recognised as assets and the cost of utilising assets is expensed (depreciated) over their
useful lives. Items of property, plant and equipment and infrastructure costing less than
$5,000 are immediately expensed direct to the Statement of Comprehensive Income
(other than where they form part of a group of similar items which are significant in total).
AASB 116.15
Initial recognition and measurement
Property, plant and equipment and infrastructure are initially recognised at cost.
AASB 116.Aus15.1
TI 1102(11)(ii)
For items of property, plant and equipment and infrastructure acquired at no cost or for
nominal cost, the cost is the fair value at the date of acquisition.
Subsequent measurement
AASB 116.31
Subsequent to initial recognition of an asset, the revaluation model is used for the
measurement of land, buildings and infrastructure and historical cost for all other property,
plant and equipment. Land, buildings and infrastructure are carried at fair value less
accumulated depreciation (buildings and infrastructure only) and accumulated impairment
losses. All other items of property, plant and equipment are stated at historical cost less
accumulated depreciation and accumulated impairment losses.
AASB 116.35
Where market-based evidence is available, the fair value of land and buildings is
determined on the basis of current market values determined by reference to recent
market transactions [or other basis, describe]. When buildings are revalued by reference
to recent market transactions, the accumulated depreciation is eliminated against the
gross carrying amount of the asset and the net amount restated to the revalued amount.
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AASB 116.35
In the absence of market-based evidence, fair value of land and buildings is determined
on the basis of existing use. This normally applies where buildings are specialised or
where land use is restricted. Fair value for existing use buildings is determined by
reference to the cost of replacing the remaining future economic benefits embodied in the
asset, i.e. the depreciated replacement cost. Where the fair value of buildings is
determined on the depreciated replacement cost basis, the gross carrying amount and
the accumulated depreciation are restated proportionately. Fair value for restricted use
land is determined by comparison with market evidence for land with similar approximate
utility (high restricted use land) or market value of comparable unrestricted land (low
restricted use land).
AASB 116.77(b)
Land and buildings are independently valued annually by the Western Australian Land
Information Authority (Valuation Services) and recognised annually to ensure that the
carrying amount does not differ materially from the asset’s fair value at the end of the
reporting period.
Fair value of infrastructure has been determined by reference to the depreciated
replacement cost (existing use basis) as the assets are specialised and no market-based
evidence of value is available. Land under infrastructure is included in land reported
under Note 26 ‘Property, plant and equipment’ [specify how land under infrastructure is
valued]. Independent valuations are obtained every 3 to 5 years for infrastructure.
AASB 116.35
When infrastructure is revalued, the accumulated depreciation is restated proportionately
with the change in the gross carrying amount of the asset so that the carrying amount of
the asset after revaluation equals its revalued amount.
AASB 13.B30
TI 1101
The most significant assumptions and judgements in estimating fair value are made in
assessing whether to apply the existing use basis to assets and in determining estimated
economic life. Professional judgement by the valuer is required where the evidence does
not provide a clear distinction between market type assets and existing use assets.
Commentary:
AASB 116.31
In this model, the agency has recognised revaluations annually. However, AASB 116 only
requires revaluations to be made with sufficient regularity to ensure that the carrying
amount does not differ materially from that which would be determined using fair value at
the end of the reporting period.
AASB 116.35
TI 954 Guidelines
On revaluation, agencies may elect to either restate proportionately the gross carrying
amount and the accumulated depreciation (gross method), or eliminate accumulated
depreciation against the gross carrying amount of the asset and restate the net carrying
amount to the revalued amount (net method). TI 954 prefers the gross method for asset
values determined on the basis of depreciated replacement cost. This model is prepared
on the gross basis and the disclosure above reflects this election.
See also Note 26 ‘Property, plant and equipment’ and Note 27 ‘Infrastructure’ for further
information on revaluations.
AASB 116.41
Derecognition
TI 954 Guidelines
Upon disposal or derecognition of an item of property, plant and equipment and
infrastructure, any revaluation surplus relating to that asset is retained in the asset
revaluation surplus.
AASB 101.73
Asset revaluation surplus
The asset revaluation surplus is used to record increments and decrements on the
revaluation of non-current assets on a class of assets basis.
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AASB 116.50
Depreciation
All non-current assets having a limited useful life are systematically depreciated over their
estimated useful lives in a manner that reflects the consumption of their future economic
benefits.
Depreciation is calculated using the straight line method [or other method, describe],
using rates which are reviewed annually. Estimated useful lives for each class of
depreciable asset are:
Buildings
Plant and equipment
Office equipment
Software(a)
Motor vehicles
Infrastructure
20 to 40 years
10 to 15 years
5 years
3 to 5 years
3 to 7 years
55 to 80 years
(a) Software that is integral to the operation of related hardware.
Works of art controlled by the Department are classified as property, plant and
equipment. These are anticipated to have indefinite useful lives. Their service potential
has not, in any material sense, been consumed during the reporting period and
consequently no depreciation has been recognised.
Land is not depreciated.
AASB 138
(h) Intangible assets
Capitalisation/expensing of assets
TI 1101(14)
Acquisitions of intangible assets costing $5,000 or more and internally generated
intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets
is expensed (amortised) over their useful lives. Costs incurred below these thresholds are
immediately expensed directly to the Statement of Comprehensive Income.
AASB 138.24,
Aus24.1
Intangible assets are initially recognised at cost. For assets acquired at no cost or for
nominal cost, the cost is their fair value at the date of acquisition.
AASB 138.74
The cost model is applied for subsequent measurement requiring the asset to be carried
at cost less any accumulated amortisation and accumulated impairment losses.
AASB 138.97, 100
Amortisation for intangible assets with finite useful lives is calculated for the period of the
expected benefit (estimated useful life which is reviewed annually) on the straight line
basis. All intangible assets controlled by the Department have a finite useful life and zero
residual value.
The expected useful lives for each class of intangible asset are:
Licences
Development Costs
Software(a)
Website costs
up to 10 years
3 to 5 years
3 to 5 years
3 to 5 years
(a) Software that is not integral to the operation of any related hardware.
Commentary:
TI 1101
Agencies should assess their own circumstances in determining capitalisation thresholds
for intangible assets (TI 1101 requires a minimum threshold of $5,000).
AASB 138.75
Intangible assets can only be revalued to fair value where an active market exists.
AASB 138.107-108
Intangible assets that have an indefinite useful life are not subject to amortisation but
must be tested annually for impairment.
AASB 138.97
APG 2
Amortisation commences when the intangible asset is available for use and ceases when
the asset is classified as held-for-sale or where the asset has been fully amortised.
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AASB 138.118
Licences
Licences have a finite useful life and are carried at cost less accumulated amortisation
and accumulated impairment losses.
AASB 138.118
APG 2
Development costs
Research costs are expensed as incurred. Development costs incurred for an individual
project are carried forward when the future economic benefits can reasonably be
regarded as assured and the total project costs are likely to exceed $50,000. Other
development costs are expensed as incurred.
AASB 138.57
Int 132
Commentary:
Specific recognition criteria apply to the capitalisation of development costs (e.g. software
developed in-house and web site costs).
Computer software
Software that is an integral part of the related hardware is recognised as property, plant
and equipment. Software that is not an integral part of the related hardware is recognised
as an intangible asset. Software costing less than $5,000 is expensed in the year of
acquisition.
Int 132.7-10
Website costs
Website costs are charged as expenses when they are incurred unless they relate to the
acquisition or development of an asset when they may be capitalised and amortised.
Generally, costs in relation to feasibility studies during the planning phase of a website,
and ongoing costs of maintenance during the operating phase are expensed. Costs
incurred in building or enhancing a website that can be reliably measured, are capitalised
to the extent that they represent probable future economic benefits.
Int 132.8
Commentary:
Website costs may be capitalised by public sector agencies. The future economic
benefits are not necessarily related to specific cash flows and the website is capable of
capitalisation where it is linked to the delivery of services of the agency.
(i) Impairment of assets
AASB 136.Aus6.1,
Aus6.2, 9
TI 1101(7)(vii)
Property, plant and equipment, infrastructure and intangible assets are tested for any
indication of impairment at the end of each reporting period. Where there is an indication
of impairment, the recoverable amount is estimated. Where the recoverable amount is
less than the carrying amount, the asset is considered impaired and is written down to the
recoverable amount and an impairment loss is recognised. Where an asset measured at
cost is written down to recoverable amount, an impairment loss is recognised in profit or
loss. Where a previously revalued asset is written down to recoverable amount, the loss
is recognised as a revaluation decrement in other comprehensive income. As the
Department is a not-for-profit entity, unless a specialised asset has been identified as a
surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to
sell and depreciated replacement cost.
The risk of impairment is generally limited to circumstances where an asset’s depreciation
is materially understated, where the replacement cost is falling or where there is a
significant change in useful life. Each relevant class of assets is reviewed annually to
verify that the accumulated depreciation/amortisation reflects the level of consumption or
expiration of the asset’s future economic benefits and to evaluate any impairment risk
from falling replacement costs.
AASB 136.10
Intangible assets with an indefinite useful life and intangible assets not yet available for
use are tested for impairment at the end of each reporting period irrespective of whether
there is any indication of impairment.
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AASB 136.6
The recoverable amount of assets identified as surplus assets is the higher of fair value
less costs to sell and the present value of future cash flows expected to be derived from
the asset. Surplus assets carried at fair value have no risk of material impairment where
fair value is determined by reference to market-based evidence. Where fair value is
determined by reference to depreciated replacement cost, surplus assets are at risk of
impairment and the recoverable amount is measured. Surplus assets at cost are tested
for indications of impairment at the end of each reporting period.
AASB 139.59
Commentary:
See Note 30 ‘Impairment of assets’ for the outcome of impairment reviews and testing.
Refer also to Note 2(q) ‘Receivables’ and Note 22 ‘Receivables’ for impairment of
receivables.
AASB 5.6, 15
(j) Non-current assets (or disposal groups) classified as held for sale
Non-current assets (or disposal groups) held for sale are recognised at the lower of
carrying amount and fair value less costs to sell, and are disclosed separately from other
assets in the Statement of Financial Position. Assets classified as held for sale are not
depreciated or amortised.
All Crown land holdings are vested in the Department by the Government. The
Department of Lands (DoL) is the only agency with the power to sell Crown land. The
Department transfers the Crown land and any attached buildings to DoL when the land
becomes available for sale.
AASB 5.Aus2.1, 2.3
Commentary:
Discontinued operations are rare in the public sector and therefore are not addressed in
this model.
(k) Leases
AASB 117.7, 8, 20,
25, 27
AASB 7.21
Finance lease rights and obligations are initially recognised, at the commencement of the
lease term, as assets and liabilities equal in amount to the fair value of the leased item or,
if lower, the present value of the minimum lease payments, determined at the inception of
the lease. The assets are disclosed as plant, equipment and vehicles under lease, and
are depreciated over the period during which the Department is expected to benefit from
their use. Minimum lease payments are apportioned between the finance charge and the
reduction of the outstanding lease liability, according to the interest rate implicit in the
lease.
AASB 117.33
Operating leases are expensed on a straight line basis over the lease term as this
represents the pattern of benefits derived from the leased properties.
Commentary:
Int 4
Specific criteria apply in determining whether an arrangement is, or contains, a lease for
the purposes of applying AASB 117 Leases. For example, take-or-pay and similar
contracts. Agencies should assess their own circumstances in determining whether an
‘in-substance’ lease has been entered into.
AASB 117.15A
Where leases include both land and building elements, separate classification of each
element as a finance or an operating lease is required.
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(l) Financial instruments
AASB 139.9
AASB 7.8
AASB 7.6, B1
In addition to cash, the Department has two categories of financial instrument:

Loans and receivables; and

Financial liabilities measured at amortised cost.
Financial instruments have been disaggregated into the following classes:


Financial Assets

Cash and cash equivalents

Restricted cash and cash equivalents

Receivables

Amounts receivable for services
Financial Liabilities

Payables

WATC/Bank borrowings

Finance lease liabilities

Amounts due to the Treasurer
AASB 139.14, 43,
46(a), 47
AASB 7.21
Initial recognition and measurement of financial instruments is at fair value which normally
equates to the transaction cost or the face value. Subsequent measurement is at
amortised cost using the effective interest method.
AASB 7.29(a)
The fair value of short-term receivables and payables is the transaction cost or the face
value because there is no interest rate applicable and subsequent measurement is not
required as the effect of discounting is not material.
AASB 107.45, 46
(m) Cash and cash equivalents
For the purpose of the Statement of Cash Flows, cash and cash equivalent (and
restricted cash and cash equivalent) assets comprise cash on hand and short-term
deposits with original maturities of three months or less that are readily convertible to a
known amount of cash and which are subject to insignificant risk of changes in value.
Commentary:
Example disclosures of bank overdrafts are not addressed in this model. Further
guidance may be found in the Note 33 ‘Borrowings’ of other Model Annual Reports.
(n) Accrued salaries
Accrued salaries (see Note 31 ‘Payables’) represent the amount due to staff but unpaid at
the end of the financial year. Accrued salaries are settled within a fortnight of the financial
year end. The Department considers the carrying amount of accrued salaries to be
equivalent to its fair value.
ASB 107.48
TI 1103
The accrued salaries suspense account (See Note 20 ‘Restricted cash and cash
equivalents’) consists of amounts paid annually into a suspense account over a period of
10 financial years to largely meet the additional cash outflow in each eleventh year when
27 pay days occur instead of the normal 26. No interest is received on this account.
Commentary:
Accrued salaries are recognised at year end where the pay date for the last pay period for
that financial year does not coincide with the end of the financial year.
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AASB 107.48
TI 1103
(o) Amounts receivable for services (holding account)
The Department receives funding on an accrual basis. The appropriations are paid partly
in cash and partly as an asset (holding account receivable). The accrued amount
receivable is accessible on the emergence of the cash funding requirement to cover leave
entitlements and asset replacement.
Commentary:
See also Note 19 ‘Income from State Government’ and Note 23 ’Amounts receivable for
services’.
AASB 102.36(a)
(p) Inventories
Inventories are measured at the lower of cost and net realisable value. Costs are
assigned by the method most appropriate for each particular class of inventory, with the
majority being measured on a first in first out basis [specify other cost methods used].
Inventories not held for resale are measured at cost unless they are no longer required, in
which case they are measured at net realisable value.
AASB 102.Aus6.1,
Aus9.1, Aus36.1
Commentary:
Inventories ‘held for distribution’ by not-for-profit entities must be disclosed separately in
the notes and measured at cost, adjusted when applicable for any loss of service
potential.
Refer also to Note 21 ‘Inventories’.
AASB 7.21, B5(d)
AASB 139.43,
46(a), 59
TI 807
(q) Receivables
Receivables are recognised at original invoice amount less an allowance for any
uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an
ongoing basis and any receivables identified as uncollectible are written-off against the
allowance account. The allowance for uncollectible amounts (doubtful debts) is raised
when there is objective evidence that the Department will not be able to collect the debts.
The carrying amount is equivalent to fair value as it is due for settlement within 30 days.
Commentary:
An allowance for impairment of receivables can only be raised if there is objective
evidence of impairment.
See also Note 2(l) ‘Financial Instruments’ and Note 22 ‘Receivables’.
AASB 7.21
AASB 139.43, 47
TI 323
(r) Payables
Payables are recognised at the amounts payable when the Department becomes obliged
to make future payments as a result of a purchase of assets or services. The carrying
amount is equivalent to fair value, as settlement is generally within 30 days.
Commentary:
See also Note 2(l) ‘Financial Instruments’ and Note 31 ‘Payables’.
AASB 7.21, 27
AASB 139.43, 47
(s) Borrowings
All loans payable are initially recognised at fair value, being the net proceeds received.
Subsequent measurement is at amortised cost using the effective interest method.
Commentary:
See also Note 2(l) ‘Financial Instruments’ and Note 32 ‘Borrowings’.
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AASB 7.21
AASB 139.47
(t) Amounts due to the Treasurer
The amount due to the Treasurer is in respect of a Treasurer’s Advance. Initial
recognition and measurement, and subsequent measurement are at the amount
repayable. Although there is no interest charged, the amount repayable is equivalent to
fair value as the period of the borrowing is for less than 12 months with the effect of
discounting not being material.
Commentary:
See also Note 33 ‘Amounts due to the Treasurer’.
(u) Provisions
Provisions are liabilities of uncertain timing or amount and are recognised where there is
a present legal or constructive obligation as a result of a past event and when the outflow
of resources embodying economic benefits is probable and a reliable estimate can be
made of the amount of the obligation. Provisions are reviewed at the end of each
reporting period.
Commentary:
See also Note 34 ‘Provisions’.
AASB 119.10, 128
Provisions – employee benefits
All annual leave and long service leave provisions are in respect of employees’ services
up to the end of the reporting period.
Annual leave
Annual leave is not expected to be settled wholly within 12 months after the end of the
reporting period and is therefore considered to be ‘other long-term employee benefits’.
The annual leave liability is recognised and measured at the present value of amounts
expected to be paid when the liabilities are settled using the remuneration rate expected
to apply at the time of settlement.
AASB 119 Aus78.1
When assessing expected future payments consideration is given to expected future
wage and salary levels including non-salary components such as employer
superannuation contributions, as well as the experience of employee departures and
periods of service. The expected future payments are discounted using market yields at
the end of the reporting period on national government bonds with terms to maturity that
match, as closely as possible, the estimated future cash outflows.
AASB 101.69(d)
The provision for annual leave is classified as a current liability as the Department does
not have an unconditional right to defer settlement of the liability for at least 12 months
after the end of the reporting period.
Commentary:
Agencies are required to review leave patterns of employees for the purpose of
measuring the employee benefit liability.
Where annual leave for the entire employee population is not wholly settled within the
twelve months after balance date, all annual leave falls within the scope of ‘other
long-term employee benefits’ and is measured at the present value of amounts expected
to be paid when the liabilities are settled in accordance with AASB 119.155.
AASB 119.11
In contrast, where annual leave is settled wholly within the twelve months after balance
date, the first paragraph under the sub heading ‘Annual Leave’ should be substituted
with:
AASB 119.76-79
“Annual leave is expected to be settled wholly within 12 months after the end of the
reporting period and is therefore considered to be a ‘short-term employee benefit’. The
annual leave liability is recognised and measured at the undiscounted amounts expected
to be paid when the liability is settled.”
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Long service leave
Long service leave is not expected to be settled wholly within 12 months after the end of
the reporting period and is therefore recognised and measured at the present value of
amounts expected to be paid when the liabilities are settled using the remuneration rate
expected to apply at the time of settlement.
AASB 119.76-79
When assessing expected future payments consideration is given to expected future
wage and salary levels including non-salary components such as employer
superannuation contributions, as well as the experience of employee departures and
periods of service. The expected future payments are discounted using market yields at
the end of the reporting period on national government bonds with terms to maturity that
match, as closely as possible, the estimated future cash outflows.
AASB 101.69(d)
TI 520 Guidelines
Unconditional long service leave provisions are classified as current liabilities as the
Department does not have an unconditional right to defer settlement of the liability for at
least 12 months after the end of the reporting period. Pre-conditional and conditional long
service leave provisions are classified as non-current liabilities because the Department
has an unconditional right to defer the settlement of the liability until the employee has
completed the requisite years of service.
Commentary:
Long service leave
AASB 119.51, 128
Agencies using the short-hand method to recognise the long service leave liability should
adopt the following paragraphs under the heading ‘Long service leave’ instead of the
above paragraphs. The following paragraphs should be tailored in accordance with the
Department’s circumstances:
“A liability for long service leave is recognised after an employee has completed x years
of service based on remuneration rates current as at the end of the reporting period.
An actuarial assessment of long service leave undertaken by XXX Actuaries at
30 June 2015 determined that the liability measured using the short-hand measurement
technique above was not materially different from the liability determined using the
present value of expected future payments. This calculation is consistent with the
Department’s experience of employee retention and leave taken.
AASB 101.69(d)
TI 520 Guidelines
Unconditional long service leave provisions are classified as current liabilities as the
Department does not have an unconditional right to defer the settlement of the liability for
at least 12 months after the end of the reporting period. Pre-conditional and conditional
long service leave provisions are classified as non-current liabilities because the
Department has an unconditional right to defer the settlement of the liability until the
employee has completed the requisite years of service.”
TI 1101 Guidelines
Use the following notes where applicable:
Sick leave
Liabilities for sick leave are recognised when it is probable that sick leave paid in the
future will be greater than the entitlement that will accrue in the future.
Past history indicates that on average, sick leave taken each reporting period is less than
the entitlement accrued. This is expected to continue in future periods. Accordingly, it is
unlikely that existing accumulated entitlements will be used by employees and no liability
for unused sick leave entitlements is recognised. As sick leave is non-vesting, an
expense is recognised in the Statement of Comprehensive Income for this leave as it is
taken.
Deferred leave
The provision for deferred leave relates to Public Service employees who have entered
into an agreement to self-fund an additional 12 months leave in the fifth year of the
agreement. The provision recognises the value of salary set aside for employees to be
used in the fifth year. This liability is measured on the same basis as annual leave.
Deferred leave is reported as a current provision as employees can leave the scheme at
their discretion at any time.
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Purchased leave
The provision for purchased leave relates to Public Service employees who have entered
into an agreement to self-fund up to an additional 10 weeks leave per calendar year. The
provision recognises the value of salary set aside for employees and is measured at the
undiscounted amounts expected to be paid when the liabilities are settled.
AASB 119.139(a)
Superannuation
The Government Employees Superannuation Board (GESB) and other fund providers
administer public sector superannuation arrangements in Western Australia in
accordance with legislative requirements. Eligibility criteria for membership in particular
schemes for public sector employees vary according to commencement and
implementation dates.
Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme
closed to new members since 1987, or the Gold State Superannuation Scheme (GSS), a
defined benefit lump sum scheme closed to new members since 1995.
Employees commencing employment prior to 16 April 2007 who were not members of
either the Pension Scheme or the GSS became non-contributory members of the West
State Superannuation Scheme (WSS). Employees commencing employment on or after
16 April 2007 became members of the GESB Super Scheme (GESBS). From
30 March 2012, existing members of the WSS or GESBS and new employees have been
able to choose their preferred superannuation fund provider. The Department makes
contributions to GESB or other fund providers on behalf of employees in compliance with
the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992.
Contributions to these accumulation schemes extinguish the Department’s liability for
superannuation charges in respect of employees who are not members of the Pension
Scheme or GSS.
The GSS is a defined benefit scheme for the purposes of employees and
whole-of-government reporting. However, it is a defined contribution plan for agency
purposes because the concurrent contributions (defined contributions) made by the
Department to GESB extinguishes the agency’s obligations to the related superannuation
liability.
The Department has no liabilities under the Pension Scheme or the GSS. The liabilities
for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributable to
members who transferred from the Pension Scheme, are assumed by the Treasurer. All
other GSS obligations are funded by concurrent contributions made by the Department to
the GESB.
The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and
is recouped from the Treasurer for the employer’s share.
Commentary:
See also Note 2(v) ‘Superannuation expense’.
AASB 137
Provisions – other
Employment on-costs
Employment on-costs, including workers’ compensation insurance, are not employee
benefits and are recognised separately as liabilities and expenses when the employment
to which they relate has occurred. Employment on-costs are included as part of ‘Other
expenses’ and are not included as part of the Department’s ‘Employee benefits expense’.
The related liability is included in ‘Employment on-costs provision’.
Commentary:
See also Note 13 ‘Other expenses’ and Note 34 ‘Provisions’.
30.06.2015
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Reference
Warranties
Provision is made for the estimated liability on all products still under warranty at the end
of the reporting period. The amount of the provision is the present value of the expected
future cash outflows expected to settle the warranty obligations, having regard to the
warranty experience over the last five years and the risks of the warranty obligations.
Int 1
AASB 116
AASB 137
APG 1
Remediation costs
AASB 119.53
AASB 119.135
AASB 119.51(b)
AASB 119.70
(v) Superannuation expense
A provision is recognised where the Department has a legal or constructive obligation to
undertake remediation work. Estimates are based on the present value of expected future
cash outflows.
Superannuation expense is recognised in the profit or loss of the Statement of
Comprehensive Income and comprises employer contributions paid to the GSS
(concurrent contributions), the WSS, the GESBS, or other superannuation funds. The
employer contribution paid to the GESB in respect of the GSS is paid back into the
Consolidated Account by the GESB.
Commentary:
Example disclosures of defined benefit plans are not addressed in this model. Further
guidance may be found in the Note 35 ‘Provisions’ of the Model Annual Report for
Statutory Authorities (Commercial).
TI 1102(11)(ii)
(w) Assets and services received free of charge or for nominal cost
Assets or services received free of charge or for nominal cost that the Department would
otherwise purchase if not donated, are recognised as income at the fair value of the
assets or services where they can be reliably measured. A corresponding expense is
recognised for services received. Receipts of assets are recognised in the Statement of
Financial Position.
Assets or services received from other State Government agencies are separately
disclosed under Income from State Government in the Statement of Comprehensive
Income.
AASB 11.20
(x) Joint operations
The Department has interests in joint arrangements that are joint operations. A joint
arrangement is a contractual arrangement whereby two or more parties undertake an
economic activity that is subject to joint control. A joint operation involves the use of
assets and other resources of the operators rather than the establishment of a separate
entity. The Department recognises its interests in the joint operations by recognising the
assets it controls and the liabilities that it incurs in respect of the joint arrangements. The
Department also recognises the expenses that it incurs and its share of the income that it
earns from the sale of goods or services by the joint operations.
Commentary:
Details of joint operations are disclosed in Note 44 ‘Joint operations’.
AASB 101.38, 41
TI 949
(y) Comparative figures
Comparative figures are, where appropriate, reclassified to be comparable with the
figures presented in the current financial year.
30.06.2015
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Reference
AASB 101.10(f)
AASB 101.40A
TI 1103
Commentary:
Change in Accounting Policy, Retrospective Restatement or Reclassification
If the Department applies an accounting policy retrospectively, makes a retrospective
restatement of items in its financial statements or reclassifies items in its financial
statements,, and the financial effect of the amended items on the statement of financial
position at the beginning of the preceding period is material, a statement of financial
position as at the beginning of the preceding period is required.
AASB 108.44
Error
Where the Department corrects an error which has a material financial effect but the
period-specific effect of the error is indeterminate, the Department may be compelled to
restate the opening balances of assets, liabilities and equity for the earliest period for
which retrospective restatement is practicable. Departments discovering a material error
in their financial statements should review paragraphs 41 to 47 of AASB 108 to determine
the reporting requirements that apply to their situation.
Note 3. Other accounting policies not included in this model
AASB 101.119
Commentary:
The Department should consider its own circumstances and incorporate any other
accounting policies where relevant. Further guidance for accounting policy disclosures
not included in this model may be obtained from Australian Accounting Standards and
other illustrative statement examples available in the public domain.
The Model Annual Report for Commercial agencies provides limited examples for
accounting policy notes in respect of investment property, rental income, foreign currency
translation, derivatives and hedge accounting.
Note 4. Judgements made by management in applying accounting
policies
The preparation of financial statements requires management to make judgements about
the application of accounting policies that have a significant effect on the amounts
recognised in the financial statements. The Department evaluates these judgements
regularly.
Operating lease commitments
The Department has entered into a number of leases for buildings for branch office
accommodation. Some of these leases relate to buildings of a temporary nature and it
has been determined that the lessor retains substantially all the risks and rewards
incidental to ownership. Accordingly, these leases have been classified as operating
leases.
AASB 101.122
Commentary:
This note is only required where judgements made in applying accounting policies have a
significant effect on the amounts recognised in the financial statements. An example
disclosure is presented above.
Other examples of the types of judgements that would need to be disclosed where they
have a significant effect are as follows:


Whether a joint arrangement is a joint operation or a joint venture;


Adoption of revaluation versus cost basis for plant and equipment; and
Capitalisation of development expenditure (for example, whether enhancements
should be capitalised or whether internally developed computer software should be
capitalised, refer to Accounting Policy Guideline (APG) 2 and AASB 138 Intangible
Assets for further guidance);
Recognition and valuation of heritage and cultural assets.
Note that the above is not an exhaustive list.
30.06.2015
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Reference
Note 5. Key sources of estimation uncertainty
Key estimates and assumptions concerning the future are based on historical experience
and various other factors that have a significant risk of causing a material adjustment to
the carrying amount of assets and liabilities within the next financial year.
Long Service Leave
Several estimations and assumptions used in calculating the Department’s long service
leave provision include expected future salary rates, discount rates, employee retention
rates and expected future payments. Changes in these estimations and assumptions may
impact on the carrying amount of the long service leave provision.
AASB 101.125
Commentary:
This note is only required where the key estimates and assumptions made concerning the
future, and other key sources of estimation uncertainty at the end of the reporting period,
have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year.
The following are other sources of estimation uncertainty that may be disclosed where
they have a significant risk of material impact:

impairment of intangible assets
Agencies are required to assess impairment of intangible assets at the end of each
reporting period. Where there is an indication of impairment (such as falling
replacement costs), the recoverable amount (depreciated replacement cost) of the
intangible asset is estimated. Calculations performed in assessing recoverable
amounts incorporate a number of key estimates; refer to AASB 138 Intangible Assets;




discount rates used in estimating provisions;
estimating useful life and residual values of key assets;
estimating depreciated replacement cost; and
contaminated sites (for example, in estimating the liability when remediation required,
refer to APG 1 Accounting for Contaminated Sites).
Note 6. Disclosure of changes in accounting policy and estimates
AASB 108.28
Initial application of an Australian Accounting Standard
The Department has applied the following Australian Accounting Standards effective, or
adopted, for annual reporting periods beginning on or after 1 July 2014 that impacted on
the Department.
Int 21
Levies
This Interpretation clarifies the circumstances under which a liability to
pay a government levy imposed should be recognised. There is no
financial impact for the Department at reporting date.
AASB 10
Consolidated Financial Statements
This Standard, issued in August 2011, supersedes AASB 127
Consolidated and Separate Financial Statements and Int 112
Consolidation – Special Purpose Entities, introducing a number of
changes to accounting treatments.
The adoption of the new Standard has no financial impact for the
Model Department as it does not impact accounting for related bodies
and the Department has no interests in other entities.
30.06.2015
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Department - 30 June 2015
Reference
AASB 11
Joint Arrangements
This Standard, issued in August 2011, supersedes AASB 131
Interests in Joint Ventures, introduces new principles for determining
the type of joint arrangement that exists, which are more aligned to the
actual rights and obligations of the parties to the arrangement.
There is no financial impact for the Model Department as the new
standard continues to require the recognition of the Department’s
share of assets and share of liabilities for the unincorporated joint
operation.
AASB 12
Disclosure of Interests in Other Entities
This Standard, issued in August 2011, supersedes disclosure
requirements in AASB 127 Consolidated and Separate Financial
Statements, AASB 128 Investments in Associates and AASB 131
Interests in Joint Ventures. There is no financial impact.
AASB 127
Separate Financial Statements
This Standard, issued in August 2011, supersedes AASB 127
Consolidated and Separate Financial Statements removing the
consolidation requirements of the earlier standard whilst retaining
accounting and disclosure requirements for the preparation of
separate financial statements. There is no financial impact.
AASB 128
Investments in Associates and Joint Ventures
This Standard supersedes AASB 128 Investments in Associates,
introducing a number of clarifications for the accounting treatments of
changed ownership interest.
The adoption of the new Standard has no financial impact for the
Model Department as it does not hold investments in associates and
joint ventures.
AASB 1031
Materiality
This Standard supersedes AASB 1031 (February 2010), removing
Australian guidance on materiality not available in IFRSs and refers to
guidance on materiality in other Australian pronouncements. There is
no financial impact.
AASB 1055
Budgetary Reporting
This Standard requires specific budgetary disclosures in the general
purpose financial statements of not-for-profit entities within the
General Government Sector. The Department will be required to
disclose additional budgetary information and explanations of major
variances between actual and budgeted amounts, though there is no
financial impact.
AASB 2011-7
Amendments to Australian Accounting Standards arising from the
Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7,
101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038
and Int 5, 9, 16 & 17]
This Standard gives effect to consequential changes arising from the
issuance of AASB 10, AASB 11, AASB 127 Separate Financial
Statements and AASB 128 Investments in Associates and Joint
Ventures. There is no financial impact for the Model Department.
30.06.2015
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Department - 30 June 2015
Reference
AASB 2012-3
Amendments to Australian Accounting Standards – Offsetting
Financial Assets and Financial Liabilities [AASB 132]
This Standard adds application guidance to AASB 132 to address
inconsistencies identified in applying some of the offsetting criteria,
including clarifying the meaning of “currently has a legally enforceable
right of set-off” and that some gross settlement systems may be
considered equivalent to net settlement. There is no financial impact.
AASB 2013-3
Amendments to AASB 136 – Recoverable Amount Disclosures for
Non-Financial Assets
This Standard introduces editorial and disclosure changes. There is no
financial impact.
AASB 2013-4
Amendments to Australian Accounting Standards – Novation of
Derivatives and Continuation of Hedge Accounting [AASB 139]
This Standard permits the continuation of hedge accounting in
circumstances where a derivative, which has been designated as a
hedging instrument, is novated from one counterparty to a central
counterparty as a consequence of laws or regulations. The Model
Department does not routinely enter into derivatives or hedges,
therefore there is no financial impact.
AASB 2013-8
Amendments to Australian Accounting Standards – Australian
Implementation Guidance for Not-for-Profit Entities – Control and
Structured Entities [AASB 10, 12 & 1049]
The amendments, issued in October 2013, provide significant
guidance in determining whether a not-for-profit entity controls another
entity when financial returns are not a key attribute of the investor’s
relationship. The Standard has no financial impact in its own right,
rather the impact results from the adoption of the amended AASB 10.
AASB 2013-9
Amendments to Australian Accounting Standards – Conceptual
Framework, Materiality and Financial Instruments
Part B of this omnibus Standard makes amendments to other
Standards arising from the deletion of references to AASB 1031 in
other Standards for periods beginning on or after 1 January 2014. It
has no financial impact.
AASB 2014-1
Amendments to Australian Accounting Standards
Part A of this Standard consists primarily of clarifications to Accounting
Standards and has no financial impact for the Department.
Part B of this Standard has no financial impact as the Department
contributes to schemes that are either defined contribution plans, or
deemed to be defined contribution plans.
Part C of this Standard has no financial impact as it removes
references to AASB 1031 Materiality from a number of Accounting
Standards.
30.06.2015
Page 43 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 2015-7
Amendments to Australian Accounting Standards - Fair
Disclosures of Not-for-Profit Public Sector Entities
Value
This Standard relieves not-for-profit public sector entities from the
reporting burden associated with various disclosures required by
AASB 13 for assets within the scope of AASB 116 that are held
primarily for their current service potential rather than to generate
future net cash inflows. It has no financial impact.
Commentary:
This disclosure is required when the initial application of an Australian Accounting
Standard or Interpretation has an effect on the current period or any prior period, or would
have such an effect, except that it is impracticable to determine the amount of the
adjustment, or might have an effect on future periods.
Treasury considers the following Australian Accounting Standards as not usually
applicable to the public sector as they have no impact or do not apply to not-for-profit
entities. However, it is the agency’s responsibility to confirm whether the Standards apply
to their own individual circumstances. If the agency determines that any of these
Standards are clearly not applicable to the agency, they should not be included in the
above note disclosure.
AASB 2013-1
Amendments to AASB 1049 – Relocation of Budgetary Reporting
Requirements
AASB 2013-5
Amendments to Australian Accounting Standards – Investment
Entities [AASB 1, 3, 7, 10, 12, 107, 112, 124, 127, 132, 134 & 139]
AASB 2013-6
Amendments to
Requirements
AASB 2013-7
Amendments to AASB 1038 arising from AASB 10 in relation to
consolidation and interests of policyholders [AASB 1038]
AASB 2014-2
Amendments to AASB 1053 – Transition to and between Tiers, and
related Tier 2 Disclosure Requirements [AASB 1053]
AASB 136
arising
from
Reduced
Disclosure
Voluntary changes in accounting policy
AASB 108.29
Commentary:
When a voluntary change in accounting policy has an effect on the current period or any
prior period, would have an effect on that period except that it is impracticable to
determine the amount of the adjustment, or might have an effect on future periods, an
entity shall disclose:
(a) the nature of the change in accounting policy;
(b) the reasons why applying the new accounting policy provides reliable and more
relevant information;
(c) for the current period and each prior period presented, to the extent practicable, the
amount of the adjustment for each financial statement line item affected;
(d) the amount of the adjustment relating to periods before those presented, to the extent
practicable; and
(e) if retrospective application is impracticable for a particular prior period, or for periods
before those presented, the circumstances that led to the existence of that condition
and a description of how and from when the change in accounting policy has been
applied.
30.06.2015
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Department - 30 June 2015
Reference
AASB 108.30, 31
Future impact of Australian Accounting Standards not yet operative
The Department cannot early adopt an Australian Accounting Standard unless specifically
permitted by TI 1101 Application of Australian Accounting Standards and Other
Pronouncements or by an exemption from TI 1101. By virtue of a limited exemption, the
Department has early adopted AASB 2015-7 Amendments to Australian Accounting
Standards - Fair Value Disclosures of Not-for-Profit Public Sector Entities. Where
applicable, the Department plans to apply the following Australian Accounting Standards
from their application date.
Operative for
reporting
periods
beginning
on/after
AASB 9
Financial Instruments
1 Jan 2018
This Standard supersedes AASB 139 Financial
Instruments:
Recognition
and
Measurement,
introducing a number of changes to accounting
treatments.
The mandatory application date of this Standard is
currently 1 January 2018 after being amended by
AASB 2012-6, AASB 2013-9 and AASB 2014-1
Amendments to Australian Accounting Standards. The
Department has not yet determined the application or
the potential impact of the Standard.
AASB 15
Revenue from Contracts with Customers
1 Jan 2017
This Standard establishes the principles that the
Department shall apply to report useful information to
users of financial statements about the nature,
amount, timing and uncertainty of revenue and cash
flows arising from a contract with a customer. The
Department has not yet determined the application or
the potential impact of the Standard.
AASB 2010-7
Amendments to Australian Accounting Standards
arising from AASB 9 (December 2010) [AASB 1, 3, 4,
5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131,
132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12,
19 & 127]
1 Jan 2018
This Standard makes consequential amendments to
other
Australian
Accounting
Standards
and
Interpretations as a result of issuing AASB 9 in
December 2010.
The mandatory application date of this Standard has
been amended by AASB 2012-6 and AASB 2014-1 to
1 January 2018. The Department has not yet
determined the application or the potential impact of
the Standard.
30.06.2015
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Department - 30 June 2015
Reference
Operative for
reporting
periods
beginning
on/after
AASB 2013-9
Amendments to Australian Accounting Standards
Conceptual Framework, Materiality and Financial
Instruments.
1 Jan 2015
Part C of this omnibus Standard defers the application
of AASB 9 to 1 January 2017. The application date of
AASB 9 was subsequently deferred to 1 January 2018
by AASB 2014-1. The Department has not yet
determined the application or the potential impact of
AASB 9.
AASB 2014-1
Amendments to Australian Accounting Standards
1 Jan 2015
Part E of this Standard makes amendments to
AASB 9 and consequential amendments to other
Standards. It has not yet been assessed by the
Authority to determine the application or potential
impact of the Standard.
AASB 2014-3
Amendments to Australian Accounting Standards –
Accounting for Acquisitions of Interests in Joint
Operations [AASB 1 & 11]
1 Jan 2016
The Department establishes Joint Operations in
pursuit of its objectives and does not routinely acquire
interests in Joint Operations. Therefore, there is no
financial impact on application of the Standard.
AASB 2014-4
Amendments to Australian Accounting Standards –
Clarification of Acceptable Methods of Depreciation
and Amortisation [AASB 116 & 138]
1 Jan 2016
The adoption of this Standard has no financial impact
for the Model Department as depreciation and
amortisation is not determined by reference to
revenue generation, but by reference to consumption
of future economic benefits.
AASB 2014-5
Amendments to Australian Accounting Standards
arising from AASB 15
1 Jan 2017
This Standard gives effect to the consequential
amendments to Australian Accounting Standards
(including Interpretations) arising from the issuance of
AASB 15. The Department has not yet determined
the application or the potential impact of the Standard.
AASB 2014-7
Amendments to Australian Accounting Standards
arising from AASB 9 (December 2014)
1 Jan 2018
This Standard gives effect to the consequential
amendments to Australian Accounting Standards
(including Interpretations) arising from the issuance of
AASB 9 (December 2014). The Department has not
yet determined the application or the potential impact
of the Standard.
30.06.2015
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Model Annual Report
Department - 30 June 2015
Reference
Operative for
reporting
periods
beginning
on/after
AASB 2014-8
Amendments to Australian Accounting Standards
arising from AASB 9 (December 2014) – Application of
AASB 9
(December 2009)
and
AASB 9
(December 2010) [AASB 9 (2009 & 2010)]
1 Jan 2015
This Standard makes amendments to AASB 9
Financial Instruments (December 2009) and AASB 9
Financial Instruments (December 2010), arising from
the issuance of AASB 9 Financial Instruments in
December 2014.
The Department has not yet
determined the application or the potential impact of
the Standard.
AASB 2014-9
Amendments to Australian Accounting Standards –
Equity Method in Separate Financial Statements
[AASB 1, 127 & 128]
1 Jan 2016
This
Standard
amends
AASB 127,
and
consequentially amends AASB 1 and AASB 128, to
allow entities to use the equity method of accounting
for investments in subsidiaries, joint ventures and
associates in their separate financial statements. The
Department has not yet determined the application or
the potential impact of the Standard.
AASB 2014-10
Amendments to Australian Accounting Standards –
Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture [AASB 10 & 128]
1 Jan 2016
This Standard amends AASB 10 and AASB 128 to
address an inconsistency between the requirements in
AASB 10 and those in AASB 128 (August 2011), in
dealing with the sale or contribution of assets between
an investor and its associate or joint venture. The
Department has not yet determined the application or
the potential impact of the Standard.
AASB 2015-1
Amendments to Australian Accounting Standards –
Annual Improvements to Australian Accounting
Standards 2012–2014 Cycle [AASB 1, 2, 3, 5, 7, 11,
110, 119, 121, 133, 134, 137 & 140]
1 Jan 2016
These amendments arise from the issuance of
International Financial Reporting Standard Annual
Improvements to IFRSs 2012–2014 Cycle in
September 2014, and editorial corrections.
The
Department has determined that the application of the
Standard has no financial impact.
30.06.2015
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Department - 30 June 2015
Reference
Operative for
reporting
periods
beginning
on/after
AASB 2015-2
Amendments to Australian Accounting Standards –
Disclosure Initiative: Amendments to AASB 101
[AASB 7, 101, 134 & 1049]
1 Jan 2016
This Standard amends AASB 101 to provide
clarification regarding the disclosure requirements in
AASB 101.
Specifically, the Standard proposes
narrow-focus amendments to address some of the
concerns expressed about existing presentation and
disclosure requirements and to ensure entities are
able to use judgement when applying a Standard in
determining what information to disclose in their
financial statements. There is no financial impact.
AASB 2015-3
Amendments to Australian Accounting Standards
arising from the Withdrawal of AASB 1031 Materiality
1 Jul 2015
This Standard completes the withdrawal of references
to AASB 1031 in all Australian Accounting Standards
and Interpretations, allowing that Standard to
effectively be withdrawn. There is no financial impact.
AASB 2015-6
Amendments to Australian Accounting Standards –
Extending Related Party Disclosures to Not-for-Profit
Public Sector Entities [AASB 10, 124 & 1049]
1 Jul 2016
The amendments extend the scope of AASB 124 to
include application by not-for-profit public sector
entities. Implementation guidance is included to assist
application of the Standard by not-for-profit public
sector entities. There is no financial impact.
Commentary:
AASB 108.30
AASB 110.18
AASB 1031.9
This disclosure is required for new or revised Australian Accounting Standards that have
been issued but are not yet effective and have not been early adopted.
The above information is current as per Australian Accounting Standards issued up to the
publication date of this Model – agencies will need to consider standards issued from the
date of Model publication until the date of authorisation for their financial statements,
subject to materiality.
Treasury considers the following Australian Accounting Standards as not usually
applicable to the public sector as they have no impact or do not apply to not-for-profit
entities. However, it is the agency’s responsibility to confirm whether the standards apply
to their own individual circumstances. If the agency determines that any of these
Standards are clearly not applicable to the agency, they should not be included in the
above note disclosure.
30.06.2015
Page 48 of 102
Model Annual Report
Department - 30 June 2015
Reference
Operative for
reporting
periods
beginning
on/after
AASB 14
Regulatory Deferral Accounts
1 Jan 2016
AASB 1056
Superannuation Entities
1 Jul 2016
AASB 2014-1
Amendments to Australian Accounting Standards
[Part D]
1 Jan 2016
AASB 2014-6
Amendments to Australian Accounting Standards –
Agriculture: Bearer Plants [AASB 101, 116, 117, 123,
136, 140 & 141]
1 Jan 2016
AASB 2015-4
Amendments to Australian Accounting Standards –
Financial Reporting Requirements for Australian
Groups with a Foreign Parent [AASB 127 & 128]
1 Jul 2015
AASB 2015-5
Amendments to Australian Accounting Standards –
Investment Entities: Applying the Consolidation
Exception [AASB 10, 12 & 128]
1 Jan 2016
Changes in accounting estimates
AASB 108.39
Commentary:
Disclosure of the nature and amount of a change in an accounting estimate that has an
effect in the current period or is expected to have an effect in future periods is required,
except when it is impracticable to estimate that effect on future periods.
AASB 119.131
AASB 119.46
Note 7. Employee benefits expense
Wages and salaries(a)
Superannuation – defined contribution plans(b)
2015
$000
636,757
33,000
669,757
2014
$000
569,002
30,000
599,002
(a)
Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave
entitlements including superannuation contribution component.
(b)
Defined contribution plans include West State, Gold State, GESB and other eligible funds.
Employment on-costs expenses, such as workers’ compensation insurance, are included
at Note 13 ‘Other expenses’.
Employment on-costs liability is included at Note 34 ‘Provisions’.
Note 8. Supplies and services
2015
$000
16,302
15,318
8,910
19,591
1,089
770
61,980
Communications
Consultants and contractors
Consumables
Materials
Travel
Other
30.06.2015
2014
$000
14,820
13,925
8,100
17,810
990
700
56,345
Page 49 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 9. Depreciation and amortisation expense
AASB 138.126
AASB 101.82(b)
2015
$000
2014
$000
Depreciation
Plant, equipment and vehicles
Buildings
Infrastructure
Leased plant, equipment and vehicles
Total depreciation
2,827
17,939
8,587
3,424
32,777
4,147
17,422
8,800
3,057
33,426
Amortisation
Licenses
Computer software
Total amortisation
Total depreciation and amortisation
20
533
553
33,330
10
384
394
33,820
2015
$000
88
105
70
263
263
2014
$000
77
150
120
347
347
Note 10. Finance costs
AASB 137.60
AASB 117.25
AASB 7.20(b)
Unwinding of discounts applied to provisions
Finance lease charges
Interest expense
AASB 123.26(a)
Borrowing costs capitalised [show amounts as applicable]
Finance costs expensed
Commentary:
Finance costs include borrowing costs. AASB 123.5 defines borrowing costs as interest
and other costs incurred by an entity in connection with the borrowing of funds, including
finance charges associated with AASB 117 finance leases (AASB 123.6(d)). Other
finance costs would include discounting expense incurred under AASB 5.17 and
AASB 137.60. The discounting of employee benefits should be recognised under
employee benefits expense rather than separately as a finance cost.
See also AASB 7, AASB 102, AASB 141, related information in Note 13 ‘Other expenses’
and Note 34 ‘Provisions’.
Note 11. Accommodation expenses
AASB 117.35(c)
2015
$000
5,214
1,452
297
6,963
Lease rentals
Repairs and maintenance
Cleaning
30.06.2015
2014
$000
4,740
1,320
270
6,330
Page 50 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 12. Grants and subsidies
Recurrent
Function A
Subsidy Scheme A
Royalties for Regions Fund – Regional Infrastructure and
Headworks Account
Royalties for Regions Funds – Regional Community Services
Account
Capital
Function B
Industry Group
Royalties for Regions Fund – Regional Infrastructure and
Headworks Account
Royalties for Regions Fund – Regional Community Services
Account
2015
$000
2014
$000
6,095
164
5,544
146
77
70
-
-
935
2,530
850
2,300
-
-
9,801
8,910
Commentary:
Framework
AusOB2.1,
AusOB3.1,
QC6-QC11
Broad categories of recipients must be disclosed in the notes to the Financial Statements
under ‘Grants and Subsidies’, where material. Presentation of grants and subsidies
expenditures should be tailored to the needs of users reliant on general purpose financial
statements and reflect discharge of accountability requirements. To achieve this, a
mixture of classifications may be required. These classifications can be based on sector,
function, project, destination/recipient, or, a combination of these classifications as
appropriate.
Classification by sector may entail distinguishing public sector, private sector, private
sector NFP recipients. Alternatively, the profile of the sector might be significant for
transparency purposes (e.g. schools, households or sporting clubs).
Functional classification may incorporate differentiation between grants for research,
targeted subsidy schemes, donations and sponsorships. Grants for research can be
further disaggregated by area of research, distinguishing differences in the funding of
aquaculture research, environmental research, or, digital system research.
FMA sec 60
TI 951
Grant funding of satellite agencies should be characterised by the recipient agency.
Similarly, disclosure of funding of affiliated and related bodies is dictated by TI 951, which
places the emphasis on disclosure by recipient agency or class of recipient agencies.
The accountable authority, on advice from the chief finance officer, should evaluate the
Department’s operations and use that evaluation to apply an appropriate subclassification methodology to ensure useful information is provided to users of the
Department’s general purpose financial statements.
30.06.2015
Page 51 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 101.97
AASB 116
AASB 136, 138,
139, 141
Int 1
AASB 7.20(e)
AASB 5.15
AASB 138.126
Note 13. Other expenses
Restoration costs
Building and infrastructure maintenance
Equipment repairs and maintenance
Doubtful debts expense
Australian Accounting Standards software modification costs
Warranties expense
Employment on-costs
Loss from earthquake(a)
Write-down of non-current assets classified as held for sale(b)
Research and development costs expensed
Other [List type of other expenses]
2015
$000
1,040
3,933
110
550
42
6,040
470
60
12,245
2014
$000
945
3,575
100
500
38
5,491
1,250
1,100
20
55
13,074
(a)
Plant and Equipment (2014:$370,000), Other (2014:$880,000).
(b)
Non-current assets held for sale measured at lower of carrying amount and fair value less selling costs.
Commentary:
AASB 101.97
Material income or expenses should be disclosed separately.
For example, include notes on impairment losses and revaluation decrements, where
they are material enough to warrant disclosure.
Employment on-costs
Includes workers’ compensation insurance and other employment on-costs. The on-costs
liability associated with the recognition of annual and long service leave liabilities is
included at Note 35 ‘Provisions’. Superannuation contributions accrued as part of the
provision for leave are employee benefits and are not included in employment on-costs.
Other Expenses
Include audit fees which generally would be the final audit fee for the previous year’s
audit plus the interim audit fee (if any) for the current year’s audit. See also
Note 46 ‘Remuneration of auditor’.
Note 14. User charges and fees
2015
$000
9,677
6,820
16,497
User charges
Fees
2014
$000
8,797
6,200
14,997
Commentary:
TI 810
Fees and charges in subsidiary legislation are generally set at a level that is authorised
by statute under which the subsidiary legislation is made.
Agencies should ensure that their fees and charges are a reasonable reflection of costs,
though factors such as competitive neutrality and Government policy objectives may alter
this situation.
30.06.2015
Page 52 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 101.82(a),
103
AASB 118.35(b)
AASB 102.36
AASB 102.38
AASB 102.36
AASB 102.36(d)
Note 15. Trading profit
Sales
Cost of Sales:
Opening inventory
Purchases
Closing inventory
Cost of Goods Sold
Trading Profit
2015
$000
14,267
2014
$000
12,970
(14,900)
(8,030)
(22,930)
17,370
(5,560)
8,707
(11,300)
(7,300)
(18,600)
14,900
(3,700)
9,270
2015
$000
1,100
1,100
2014
$000
1,000
1,000
Commentary:
See also Note 2(p) ‘Inventories’ and Note 21 ‘Inventories’.
Note 16. Commonwealth grants and contributions
AASB 1004.18
TI 1102(8)
Capital grants
Capital grants for 2015 include a non-reciprocal grant of $500,000 from the
Commonwealth Department of Information Technology. The terms of the grant specify
that it must be used to fund the research and development project on software
development for public sector accounting. The grant has been recognised in its entirety
upon receipt as the only condition applying to its use is how it can be expended and it is
not subject to performance measures in terms of service delivery. At 30 June 2015,
$450,000 of the grant has been spent.
Commentary:
AASB 1004.60(b),
(d)
Where contributions have been recognised as income during the reporting period that
were provided specifically for the provisions of goods and services over a future reporting
period, the nature, amounts and the periods to which they relate must be disclosed.
AASB 1004.60(e)
Where contributions have been recognised as income in a previous reporting period that
were obtained in respect of the current reporting period, the nature and amounts must be
disclosed.
Note 17. Net gain/(loss) on disposal of non-current assets
AASB 5.30
AASB 101.98(c)
AASB 116.68
AASB 138.113
Proceeds from disposal of non-current assets
Land
Plant, equipment and vehicles
Carrying amount of non-current assets disposed
Land
Plant, equipment and vehicles
Net gain/(loss)
2015
$000
2014
$000
990
1,808
11,190
(690)
(1,938)
170
(6,490)
4,700
Commentary:
See also Note 2(j) ‘Non-current assets (or disposal groups) classified as held for sale’,
Note 25 ‘Non-current assets held for sale’ and Note 26 ‘Property, plant and equipment’.
Insured non-current assets written-off as a result of an insurable event should be treated
as other expenses (write-off of assets destroyed by fire/storm/earthquake etc). The
subsequent insurance recovery is to be treated as other revenue when it is received or
receivable.
30.06.2015
Page 53 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 18. Other gains
2015
$000
1,067
1,067
[List types of other gains]
AASB 116.Aus39.1
AASB 136.119
Commentary:
TI 1102(7)(iv)
Note 19. Income from State Government
AASB 1004.63(a)
AASB 1004.63(b)
AASB 1004.18
AASB 1004.62
Other gains could include material reversals of impairments and revaluation increments
(offsetting decrements).
2015
$000
2014
$000
803,846
803,846
713,701
713,701
Liabilities assumed by other State government agencies during
the period:(b)
[Detail]
Total liabilities assumed
-
-
Assets transferred from/(to) other State government agencies
during the period:(b)
Inventories
Total assets transferred
-
-
1,000
595
1,595
1,000
450
1,450
805,441
722,251
Appropriation received during the period:
Service appropriation(a)
Services received free of charge from other State government
agencies during the period:
Information Technology Commission
Finance - Building and Management Works
Royalties for Regions Fund:
Regional Infrastructure and Headworks Account(c)
Regional Community Services Account(c)
AASB 1004.54-59
TI 955
TI 1102(11)
2014
$000
970
970
(a)
Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash
component and a receivable (asset). The receivable (holding account) comprises the budgeted
depreciation expense for the year and any agreed increase in leave liabilities during the year.
(b)
Discretionary transfers of assets (including grants) and liabilities between State Government agencies are
reported under Income from State Government. Transfers of assets and liabilities in relation to a
restructure of administrative arrangements are recognised as distribution to owners by the transferor and
contribution by owners by the transferee under AASB 1004 in respect of net assets transferred. Other
non-discretionary non-reciprocal transfers of assets and liabilities designated as contributions by owners
under TI 955 are also recognised directly to equity.
(c)
This is a sub-fund within the over-arching ‘Royalties for Regions Fund’. The recurrent funds are committed
to projects and programs in WA regional areas.
Commentary:
Where another state government agency has assumed a liability, the agency recognises
revenue equivalent to the amount of the liability assumed. Note that the expense relating
to the nature of the event or events that initially gave rise to the liability will continue to be
recognised in the appropriate reporting period in order to disclose the true cost of
services.
Where assets or services have been received free of charge or for nominal cost, the
agency recognises revenue (and assets or expenses) equivalent to the fair value of the
assets and/or the fair value of those services that can be reliably determined and which
would have been purchased if not donated.
Agencies receiving BMW capital works project management services free of charge from
Finance are required to recognise the revenue at fair value.
30.06.2015
Page 54 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 107.45, 48
TI 1103
Note 20. Restricted cash and cash equivalents
Current
Royalties for Regions Fund(a)
Capital grant from the Commonwealth Department of Information
Technology(b)
Non-current
Accrued salaries suspense account(c)
AASB 101.57(d)
2015
$000
2014
$000
-
-
50
50
50
50
60
60
50
50
(a)
Unspent funds are committed to projects and programs in WA regional areas.
(b)
Funds held for the research and development project on software development for public sector
accounting.
(c)
Funds held in the suspense account for the purpose of meeting the 27th pay in a financial year that occurs
every 11th year.
Commentary:
Disclose cash and cash equivalents as current assets unless restricted in its use beyond
twelve months. Accordingly, the accrued salaries suspense account will be non-current
for 10 out of 11 years.
Where there is a balance of cash received as capital appropriations remaining at
year-end, this cash should not be disclosed as restricted cash and cash equivalents.
AASB 101.78(c)
AASB 102.36, 38
Note 21. Inventories
Current
Inventories held for resale:
Raw materials & stores (at cost)
Work in progress (at cost)
Finished goods
At cost
At net realisable value
AASB 102.36(b)
Other
Total current
Non-current
[List classes of inventories]
Total non-current
2015
$000
2014
$000
9,100
1,570
6,365
2,020
4,570
2,130
17,370
940
18,310
4,545
1,970
14,900
1,475
16,375
-
-
2015
$000
2014
$000
8,794
(660)
421
8,555
2,286
(550)
414
2,150
-
-
8,555
2,150
Commentary:
See also Note 2(p) ‘Inventories’ and Note 15 ‘Trading profit’.
AASB 7
AASB 139
AASB 7.16
Note 22. Receivables
Current
Receivables
Allowance for impairment of receivables
Accrued revenue
GST receivable
Loans and advances:
Other debtors
Total current
30.06.2015
Page 55 of 102
Model Annual Report
Department - 30 June 2015
Reference
2015
$000
2014
$000
-
-
-
-
550
110
660
520
100
(48)
(22)
550
Non-current
Loans and advances:
Other debtors
Bills of exchange:
Bills accepted or endorsed by banks
Other bills
Total non-current
AASB 7.16
AASB 7.20(e)
AASB 139.63
AASB 139.65
AASB 7.38
Reconciliation of changes in the allowance for impairment
of receivables:
Balance at start of period
Doubtful debts expense
Amounts written off during the period
Impairment losses reversed during the period
Balance at end of period
The Department does not hold any collateral or other credit enhancements as security for
receivables.
Commentary:
See also Note 2(q) ‘Receivables’ and Note 43 ‘Financial instruments’.
AASB 107.48
TI 1103
Note 23. Amounts receivable for services (Holding Account)
2015
$000
14,239
75,933
90,172
Current
Non-current
2014
$000
18,137
47,925
66,062
Represents the non-cash component of service appropriations. It is restricted in that it
can only be used for asset replacement or payment of leave liability.
Commentary:
See also Note 2(o) ‘Amounts receivable for services (holding account)’.
Note 24. Other assets
Current
Prepayments
Other [describe]
Total current
Non-current
Other [describe]
Total non-current
AASB 101.78(b)
2015
$000
2014
$000
550
550
560
560
-
60
60
Commentary:
Prepayments may be disclosed separately in the Statement of Financial Position, as a
disaggregated component of receivables, or in notes as ‘Other Assets’ based on the size,
nature and function of the amounts involved. Refer to Note 22 ‘Receivables’. Note that
prepayments are not financial assets and should be excluded from receivables in the
financial instruments note.
30.06.2015
Page 56 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 5.38-41
Note 25. Non-current assets classified as held for sale
Opening balance
Land
Plant, equipment and vehicles
Less write-down from cost to fair value less selling costs
Assets reclassified as held for sale
Land
Plant, equipment and vehicles
Less write-down from cost to fair value less selling costs(a)
Total assets classified as held for sale
Land
Plant, equipment and vehicles
Less write-down from cost to fair value less selling costs
Less assets sold
Land
Plant, equipment and vehicles
Less write-down from cost to fair value less selling costs
AASB 5.20
Closing balance
Land
Plant, equipment and vehicles
Write-down from cost to fair value less selling costs
(a)
2015
$000
2014
$000
1,090
2,038
(500)
2,628
2,170
2,170
3,370
(470)
2,900
1,090
6,958
(1,100)
6,948
1,090
5,408
(970)
5,528
1,090
9,128
(1,100)
9,118
1,090
2,038
(500)
2,628
7,090
(600)
6,490
3,370
(470)
2,900
1,090
2,038
(500)
2,628
Disclosed as Other expenses.
Information on fair value measurements is provided in Note 28.
Commentary:
Disclose any write-downs that occurred during the reporting period.
The above table is a long-hand disclosure and is included as guidance. The following
remarks are provided for clarity:
AASB 5.23
(i)
The contra amount under opening balance is equivalent to write-downs from
prior financial years.
AASB 5.20
(ii)
The contra amount under assets reclassified as held for sale is equivalent to the
write-down in the current financial year.
(iii)
The contra amount under total assets classified as held for sale is equal to the
contra amount for (i) and (ii).
(iv)
The contra amount under assets sold is the full amount of write-downs
attributable to the assets sold. In this example, all assets in the opening balance
were sold within the reporting period.
AASB 5.41
Describe the non-current asset, the facts and circumstances of the disposal, and the
expected manner and timing of that disposal.
AASB 5.26-29, 42
Where an agency decides to change its plan to sell an asset held for sale or the criteria
for the classification of an asset held for sale is no longer met, the agency must reclassify
it and adjust in accordance with AASB 5. Disclose a description of the facts and
circumstances leading to the decision and its effect on the results of the operations for
the period and any prior periods presented.
Less assets sold - See Note 2(j) ‘Non-current assets (or disposal groups) classified as
held for sale’, Note 17 ‘Net gain/(loss) on disposal of non-current assets’ and
Note 13 ‘Other expenses’ and Note 28 ‘Fair value measurements’.
30.06.2015
Page 57 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 116
AASB 101.54(a)
AASB 116
AASB 136
Note 26. Property, plant and equipment
Land
At fair value(a)
Accumulated impairment losses
Buildings
At fair value(a)
Accumulated depreciation
Accumulated impairment losses
Buildings under construction
Construction costs
Plant, equipment and vehicles
At cost
Accumulated depreciation
Accumulated impairment losses
Office equipment
At cost
Accumulated depreciation
Accumulated impairment losses
AASB 117.31(a)
AASB 117.20
Leased plant, equipment and vehicles
At capitalised cost
Accumulated depreciation
Accumulated impairment losses
AASB 117.31(a)
AASB 117.20
Leased office equipment
At capitalised cost
Accumulated depreciation
Accumulated impairment losses
Works of art
At cost
Accumulated impairment losses
AASB 116.77
(a)
2015
$000
2014
$000
112,910
112,910
97,910
97,910
568,564
(80,393)
488,171
494,164
(55,454)
438,710
116,090
116,090
96,090
96,090
24,748
(7,870)
16,878
13,171
(6,583)
6,588
800
(254)
546
800
(94)
706
10,580
(7,522)
3,058
10,580
(4,819)
5,761
3,605
(1,475)
2,130
3,605
(754)
2,851
150
150
739,933
150
150
648,766
Land and buildings were revalued as at 1 July 2014 by the Western Australian Land Information Authority
(Valuation Services). The valuations were performed during the year ended 30 June 2015 and recognised
at 30 June 2015. In undertaking the revaluation, fair value was determined by reference to market values
for land: $108,000,000 (2014: $93,640,000) and buildings: $348,821,000 (2014: $320,969,000). For the
remaining balance, fair value of buildings was determined on the basis of depreciated replacement cost
and fair value of land was determined on the basis of comparison with market evidence for land with low
level utility (high restricted use land).
Commentary:
AASB 117.20
AASB 116.35
TI 954 Guidelines
Leased assets are recognised at the lower of fair value and present value of minimum
lease payments.
On revaluation, agencies may elect to either restate proportionately the gross carrying
amount and the accumulated depreciation (gross method), or eliminate accumulated
depreciation against the gross carrying amount of the asset and restate the net carrying
amount to the revalued amount (net method). The treatment adopted should be
disclosed in the accounting policy note.
See also Note 2(g) ‘Property, plant and equipment and infrastructure’ and Note 28 ‘Fair
value measurements’.
30.06.2015
Page 58 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 116.73
Reconciliations of the carrying amounts of property, plant, and equipment at the beginning and end of the reporting period are set out in the table
below.
2015
Carrying amount at start of period
Additions
Transfers(a)
Other disposals
Classified as held for sale
Revaluation increments/(decrements)
Impairment losses(b)
Impairment losses reversed(b)
Depreciation
Carrying amount at end of period
2014
Carrying amount at start of period
Additions
Transfers(a)
Other disposals
Classified as held for sale
Revaluation increments/(decrements)
Impairment losses(b)
Impairment losses reversed(b)
Depreciation
Write-off of assets destroyed by
earthquake
Carrying amount at end of period
Buildings
Plant,
under
equipment
construction and vehicles
$000
$000
Office
equipment
$000
Leased plant,
equipment
and vehicles
$000
Leased
office
equipment Works of Art
$000
$000
Land
$000
Buildings
$000
Total
$000
97,910
15,000
112,910
438,710
22,400
45,000
(17,939)
488,171
96,090
20,000
116,090
6,588
16,327
(3,370)
(2,667)
16,878
706
(160)
546
5,761
(2,703)
3,058
2,851
(721)
2,130
150
150
648,766
58,727
(3,370)
60,000
(24,190)
739,933
93,500
(1,090)
5,500
-
380,893
57,239
18,000
(17,422)
70,000
26,090
-
15,858
2,155
(6,958)
(4,097)
756
(50)
8,464
(2,703)
1,697
1,508
(354)
150
-
571,318
86,992
(1,090)
(6,958)
23,500
(24,626)
97,910
438,710
96,090
(370)
6,588
706
5,761
2,851
150
(370)
648,766
(a)
The Department of Lands (DoL) is the only agency with the power to sell Crown land. The land is transferred to DoL for sale and the Department accounts for the transfer as a distribution to owner.
(b)
Recognised in the Statement of Comprehensive Income. Where an asset measured at cost is written-down to recoverable amount, an impairment loss is recognised in profit or loss. Where a
previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income
Information on fair value measurements is provided in Note 28
30.06.2015
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Model Annual Report
Department - 30 June 2015
Reference
Commentary:
The proceeds from the sale of a single item of plant and equipment with a value of
$10,000 or more are not retained by an agency. The proceeds are transferred to the
Consolidated Account as a distribution to owner (refer to FMA section 23, and Financial
Management (Net Appropriations) Determination 2015).
AASB 117.47, 56
Disclose the leasing arrangements for finance or operating leases of non-current assets to
external parties (i.e. the agency is the lessor).
Int 4
Arrangements containing ‘in-substance’ leases classified as finance leases under
AASB 117 Leases are to be recognised as leased assets in the appropriate category.
AASB 116
AASB 101.68(a)
Note 27. Infrastructure
2015
$000
666,079
(33,589)
632,490
At fair value
Accumulated depreciation
Accumulated impairment losses
AASB 116.77
2014
$000
624,079
(23,002)
601,077
Infrastructure assets were independently revalued by [state name of valuer] as at [date of
valuation]. The valuations were recognised at 30 June 2015.
Fair value was determined on the basis of depreciated replacement cost.
AASB 116.73(e)
AASB 136.60, 117
AASB 136.60, 119
Reconciliation
Carrying amount at start of period
Additions
Assets classified as held for sale
Revaluation increments/(decrements)
Impairment losses
Impairment losses reversed
Depreciation expense
Carrying amount at end of period
2015
$000
2014
$000
601,077
40,000
(8,587)
632,490
597,877
10,000
2,000
(8,800)
601,077
Information on fair value measurements is provided in Note 28.
AASB 116.35
TI 954 Guidelines
Commentary:
On revaluation, agencies may elect to either restate proportionately the gross carrying
amount and the accumulated depreciation (gross method), or eliminate accumulated
depreciation against the gross carrying amount of the asset and restate the net carrying
amount to the revalued amount (net method). The treatment adopted should be disclosed
in the accounting policy note.
See also Note 2(g) ‘Property, plant and equipment and infrastructure’.
AASB 13
AASB 13.93(a),(b)
AASB 13.94
Note 28. Fair value measurements
Assets measured at fair value:
2015
Non-current assets classified as held
for sale (Note 25)
Land (Note 26)
Buildings (Note 26)
Infrastructure (Note 27)
Level 1
$000
Level 2
$000
Level 3
$000
Fair Value
At end of period
$000
-
2,900
-
2,900
-
108,000
348,821
459,721
4,910
139,350
632,490
776,750
112,910
488,171
632,490
1,236,471
30.06.2015
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Department - 30 June 2015
Reference
AASB 13.93(a),(b)
AASB 13.94
Assets measured at fair value:
2014
Non-current assets classified as held
for sale (Note 25)
Land (Note 26)
Buildings (Note 26)
Infrastructure (Note 27)
Level 1
$000
Level 2
$000
Level 3
$000
Fair Value
At end of period
$000
-
2,628
-
2,628
-
93,640
320,969
417,237
4,270
117,741
601,077
723,088
97,910
438,710
601,077
1,140,325
There were no transfers between Levels 1, 2 or 3 during the current and previous periods.
AASB 13.93(e)(iv)
AASB 13.95
Commentary:
Additional consequential narrative disclosures are required when assets transfer levels in
the fair value hierarchy. An asset deemed surplus and in the process of preparation for
disposal may change levels in the fair value hierarchy.
The narrative disclosure for changes in this circumstance will include a reference to the
relevant assets being prepared for sale subsequent to being deemed surplus to
requirement and the agency’s policy for determining when transfers between levels are
deemed to have occurred.
AASB 13.93(d)
Valuation techniques to derive Level 2 fair values
Level 2 fair values of Non-current assets held for sale, Land and Buildings (Office
Accommodation) are derived using the market approach. Market evidence of sales prices
of comparable land and buildings (office accommodation) in close proximity is used to
determine price per square metre.
Non-current assets held for sale have been written down to fair value less costs to sell.
Fair value has been determined by reference to market evidence of sales prices of
comparable assets.
AASB 13.93(e)
Fair value measurements using significant unobservable inputs (Level 3)
AASB 13.93(e)(ii)
2015
Fair Value at start of period
Additions
Revaluation increments/(decrements)
recognised in Profit or Loss
Revaluation increments/(decrements)
recognised in Other Comprehensive Income
Transfers from/(to) Level 2
Disposals
Depreciation Expense
Fair Value at end of period
AASB 13.93(e)(iv)
AASB 13.93(e)(i)
Total gains or losses for the period included in
profit or loss, under ‘Other Gains’
30.06.2015
Land
$000
4,270
-
Buildings
$000
117,741
22,400
Infrastructure
$000
601,077
-
-
-
-
640
4,026
40,000
4,910
(4,817)
139,350
(8,587)
632,490
-
-
-
Page 61 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 13.93(e)(ii)
AASB 13.93(e)(iv)
2014
Fair Value at start of period
Additions
Revaluation increments/(decrements)
recognised in Profit or Loss
Revaluation increments/(decrements)
recognised in Other Comprehensive Income
Transfers from/(to) Level 2
Transfers from/(to) non-current assets
classified as held for sale
Disposals
Depreciation Expense
Fair Value at end of period
AASB 13.93(e)(i)
Total gains or losses for the period included in
profit or loss, under ‘Other Gains’
TI 954 Guidelines
Commentary
Land
$000
5,060
-
Buildings
$000
113,166
7,239
Infrastructure
$000
597,877
10,000
-
-
-
300
2,866
2,000
-
-
-
-
-
-
(1,090)
4,270
(2,774)
117,741
(8,800)
601,077
-
-
-
The reconciliation for the comparative period includes a parcel of land which moved from
‘existing use’ basis (Level 3) to market value basis (Level 2) as the restrictions on the use
of the land were removed by the Government of Western Australia prior to marketing the
asset to the public. At the end of the comparative reporting period, the transferred land
parcel was classified as Non-current assets classified as held for sale.
AASB 13.93(g)
Valuation processes
AASB 13.93(d)
AASB 13.95
TI 954(5)
There were no changes in valuation techniques during the period.
Transfers in and out of a fair value level are recognised on the date of the event or change
in circumstances that caused the transfer. Transfers are generally limited to assets newly
classified as non-current assets held for sale as Treasurer's instructions require valuations
of land, buildings and infrastructure to be categorised within Level 3 where the valuations
will utilise significant Level 3 inputs on a recurring basis.
Land (Level 3 fair values)
Fair value for restricted use land is based on comparison with market evidence for land
AASB 13.93(d),(g), with low level utility (high restricted use land). The relevant comparators of land with low
(h)
level utility is selected by the Western Australian Land Information Authority (Valuation
Services) and represents the application of a significant Level 3 input in this valuation
methodology. The fair value measurement is sensitive to values of comparator land, with
higher values of comparator land correlating with higher estimated fair values of land.
Commentary:
Level 3 estimated land values may be either: high restricted use, or low restricted use.
The above illustration is for high restricted use land.
Low Restricted Use Land
Where the Authority controls low restricted use land, the following wording is appropriate:
“Fair value for restricted use land is based on market value, using market evidence of
sales of comparable land that is unrestricted less restoration costs to return the site to a
vacant and marketable condition (low restricted use land). The estimate of restoration cost
as provided by [state name of expert] as at [date of estimate] represents a significant
Level 3 input, with higher restoration costs correlating with lower estimated fair values of
land.”
Restoration costs are estimated for the purpose of returning the site to a vacant and
marketable condition and include costs for: building demolition, clearing, re-zoning and an
allowance for time factors.
30.06.2015
Page 62 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 13.91,
AASB 13.93(g)
Authorities holding both Low Restricted Use Land and High Restricted Use Land
If the Authority’s fair value estimates of land comprise both low restricted use and high
restricted use land values, the relevant amounts and comparatives should be disclosed.
Buildings and Infrastructure (Level 3 fair values)
AASB 13.B9
AASB 136.Aus6.2
AASB 136.Aus32
Fair value for existing use specialised buildings and infrastructure assets is determined by
reference to the cost of replacing the remaining future economic benefits embodied in the
asset, i.e. the depreciated replacement cost. Depreciated replacement cost is the current
replacement cost of an asset less accumulated depreciation calculated on the basis of
such cost to reflect the already consumed or expired economic benefit, or obsolescence,
and optimisation (where applicable) of the asset. Current replacement cost is generally
determined by reference to the market observable replacement cost of a substitute asset
of comparable utility and the gross project size specifications.
AASB 13.93(d),(g), Valuation using depreciation replacement cost utilises the significant Level 3 input,
(h)
consumed economic benefit/obsolescence of asset which is estimated by the Western
Australian Land Information Authority (Valuation Services). The fair value measurement is
sensitive to the estimate of consumption/obsolescence, with higher values of the estimate
correlating with lower estimated fair values of buildings and infrastructure.
Commentary:
Derivation of Depreciated Replacement Cost
In applying the depreciated replacement cost for valuing specialised assets (buildings and
infrastructure assets), both observable and unobservable inputs may be utilised in
determining fair value. For example, Valuation Services may utilise replacement costs (per
unit volume) that are observable in the market via the Cordell’s Publication or the
Rollinson’s Publication for constructing a similar asset. In contrast, the effective age and
the consumed economic benefit of the asset is an asset specific value and unobservable
to the market.
AASB 13.93(e)(iv)
AASB 13.95
Where applicable to an Department’s specialised non-current assets, the following
statement may be added to the above paragraph:
“For some specialised buildings and infrastructure assets, the current replacement cost is
determined by reference to the historical cost adjusted by relevant indices. ‘Historical cost
per square metre floor area (m 2)’ and ‘Historical cost per cubic metre (m 3)’ represent
significant Level 3 inputs used in the valuations of these respective buildings (2015:[Insert
value]; 2014:[Insert value]) and infrastructure assets respectively (2015:[Insert value];
2014:[Insert value]), with higher historical costs per m 2 or m3 correlating with higher
estimated fair values.”
Depreciated replacement cost contains an implicit reference to asset optimisation,
whereby the cost is determined by reference to obtaining the asset at the lowest cost at
which the gross future economic benefits of that asset could currently be obtained in the
normal course of business. Consequently, assets are replaced with a modern equivalent
with optimisation for obsolescence and relevant surplus capacity.
AASB 13.92, 94,
98
Additional Disclosures
AASB 13.97
Where assets or liabilities are not measured at fair value, but fair value information is
provided in the notes to the financial statements the AASB 13 disclosures are required.
Agencies may need to disclose additional information for liabilities where liabilities are
measured at fair value. Liabilities of the Model Statutory Department are normally
measured at amortised cost.
Restoration costs
APG 1
Restoration costs to return the site to a vacant and marketable condition for land with
restricted use are estimated by Valuation Services, however where the land is subject to
contamination, agencies would seek expert advice on the cost of remediation for the
purposes of measuring the remediation liability.
30.06.2015
Page 63 of 102
Model Annual Report
Department - 30 June 2015
Reference
Income Approach
APG 1
Whilst TI 954 generally considers the income approach irrelevant for valuing specialised
assets in the public sector, agencies applying AASB 140 are more likely to be required to
disclose inputs in this section. Where this occurs, the following example disclosure may
be appropriate:
“Discounted Cash Flow
The discounted cash flow approach takes into account the ability of the property to
generate income over a 12 year period based on certain assumptions. Provision is made
for leasing up periods upon the expiry of the various leases throughout the 12 year time
horizon. Each year’s net operating income during the period is discounted to arrive at the
present value of expected future cash flows.”
AASB 13.93(g), (i)
Basis of Valuation
TI 954 Guidelines
In the absence of market-based evidence, due to the specialised nature of some
non-financial assets, these assets are valued at Level 3 of the fair value hierarchy on an
existing use basis. The existing use basis recognises that restrictions or limitations have
been placed on their use and disposal when they are not determined to be surplus to
requirements. These restrictions are imposed by virtue of the assets being held to deliver a
specific community service.
30.06.2015
Page 64 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 13.93(h)
AASB 2015-7
Information about significant unobservable inputs (Level 3) in fair value measurements [where applicable]
Description
Fair value
2015
$000
[insert class
of asset or
liability]
[insert
value]
Fair value
2014
$000
Valuation
technique(s)
[insert Income
value] approach
Unobservable
inputs
[insert description]
Range of
unobservable inputs
(weighted average)
2015
[insert data]
Range of
unobservable inputs
(weighted average)
2014
[insert data]
Relationship of
unobservable inputs to
fair value
[insert narrative on
relationship between input
and fair value]
Reconciliations of the opening and closing balances are provided in Notes 25, 26 and 27.
Commentary:
Agencies will need to be familiar with each valuation technique applicable to their asset base.
Requirement for information about significant unobservable inputs and sensitivity of the fair value measurement to changes in unobservable inputs
The following circumstances result in a continued requirement to disclose information about significant unobservable inputs:

For-Profit public sector agencies;

fair valued assets within the scope of AASB 116 that are held for generating future net cash inflows for both For-Profit and Not-For-Profit
public sector agencies; and,

fair valued assets and liabilities recognised under other Australian Accounting Standards for both For-Profit and Not-For-Profit public
sector agencies.
Where the information is required, the relationship between the unobservable inputs and the resultant fair value must be described.
Unobservable Inputs in Fair Value Estimation Process
Agencies will need to establish and disclose values of only the significant unobservable inputs utilised in the fair value estimation process for their
asset base, other than property, plant and equipment held for their current service potential. Where the range of values is wide, a weighted
average for those values is required. If the range of values is very wide, it may be necessary to disaggregate the asset class further (e.g.
Metropolitan Area versus Regional Areas) to provide meaningful information.
30.06.2015
Page 65 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 138.118
AASB 101.104
AASB 101.104
Note 29. Intangible assets
2015
$000
2014
$000
200
(40)
160
200
(20)
180
1,600
(1,305)
295
1,600
(772)
828
455
1,008
Reconciliations:
Licenses
Carrying amount at start of period
Additions
Classified as held for sale
Impairment losses
Impairment losses reversed
Amortisation expense
Carrying amount at end of period
180
(20)
160
190
(10)
180
Computer software
Carrying amount at start of period
Additions
Classified as held for sale
Impairment losses
Impairment losses reversed
Amortisation expense
Carrying amount at end of period
828
(533)
295
1,212
(384)
828
Licences
At cost
Accumulated amortisation
Accumulated impairment losses
Computer software
At cost
Accumulated amortisation
Accumulated impairment losses
Other [describe]
APG 2
Commentary:
Research costs must be expensed. Development costs that meet the specified criteria in
AASB 138.57 can be capitalised.
30.06.2015
Page 66 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 30. Impairment of assets
AASB 136.9
There were no indications of impairment to property, plant and equipment, infrastructure or
intangible assets at 30 June 2015.
AASB 136.10
The Department held no goodwill or intangible assets with an indefinite useful life during
the reporting period. At the end of the reporting period there were no intangible assets not
yet available for use.
AASB 136.12
All surplus assets at 30 June 2015 have either been classified as assets held for sale or
written-off.
Note 31. Payables
2015
$000
2014
$000
Current
Trade payables
Other payables
Accrued expenses
Accrued salaries
Other [describe]
Total current
2,028
528
201
30
2,787
1,350
480
160
50
2,040
Non-current
Trade payables
Other [describe]
Total non-current
-
-
AASB 117, AASB 7
AASB 101.58-59
Current
Finance lease liabilities (secured)(a)
Other [describe]
Total current
2015
$000
600
600
2014
$000
650
650
AASB 117, AASB 7
AASB 101.58-59
Non-current
Finance lease liabilities (secured)(a)
Other [describe]
Total non-current
2,205
2,205
2,220
2,220
Commentary:
See also Note 2(r) ‘Payables’ and Note 43 ‘Financial instruments’.
AASB 7.8(f)
AASB 101.77
AASB 7.14(b)
AASB 7.14(a)
Note 32. Borrowings
(a) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of
default.
Assets pledged as security
The carrying amounts of non-current assets pledged as security
are:
Leased plant, equipment and vehicles
Leased office equipment
2015
$000
2014
$000
3,058
2,130
5,188
5,761
2,851
8,612
Commentary:
Int 4
Agencies entering into arrangements containing ‘in-substance’ leases classified as finance
leases under AASB 117 Leases are required to recognise these as finance lease
liabilities.
AASB 7.18, 19
Disclose any defaults or breaches of any terms of a loan agreement.
30.06.2015
Page 67 of 102
Model Annual Report
Department - 30 June 2015
Reference
FMA sec 9
Note 33. Amounts due to the Treasurer
Current
Amount due to the Treasurer
2015
$000
2014
$000
2,400
2,400
7,970
7,970
Commentary:
An example of an amount due to the Treasurer is an outstanding Treasurer’s Advance.
See also Note 43 ‘Financial instruments’.
AASB 137.84, 85
Note 34. Provisions
Current
Employee benefits provision
Annual leave(a)
Long service leave(b)
Deferred salary scheme(c)
Int 1
Other provisions
Employment on-costs(d)
Warranties(e)
Remediation costs(f)
Non-current
Employee benefits provision
Long service leave(b)
Int 1
AASB 101.69(d)
Other provisions
Employment on-costs(d)
Warranties(e)
Remediation costs(f)
(a)
AASB 101.69(d)
AASB 101.61
(b)
2014
$000
11,136
2,614
4,828
18,578
10,124
2,376
52
12,552
1,517
20
1,537
20,115
1,505
20
1,525
14,077
8,333
8,333
666
666
942
42
550
1,534
9,867
242
25
525
792
1,458
Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement
for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of
the liabilities is expected to occur as follows:
Within 12 months of the end of the reporting period
More than 12 months after the end of the reporting period
AASB 101.61
2015
$000
2015
$000
10,746
390
11,136
2014
$000
9,820
304
10,124
Long service leave liabilities have been classified as current where there is no unconditional right to defer
settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual
settlement of the liabilities is expected to occur as follows:
Within 12 months of the end of the reporting period
More than 12 months after the end of the reporting period
30.06.2015
2015
$000
1,614
9,333
10,947
2014
$000
1,376
1,666
3,042
Page 68 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 101.69(d)
(c)
Deferred salary scheme liabilities have been classified as current where there is no unconditional right to
defer settlement for at least 12 months after the end of the reporting period. Actual settlement of the
liabilities is expected to occur as follows:
Within 12 months of the end of the reporting period
More than 12 months after the end of the reporting period
AASB 101.61
(d)
2015
$000
4,828
4,828
2014
$000
52
52
The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs
including workers’ compensation insurance. The provision is the present value of expected future payments.
The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in Note 13
‘Other expenses’.
AASB 137.85
(e)
Provision is made for the estimated warranty claims in respect of products sold which are still under
warranty at the end of the reporting period. These claims are expected to be settled within two financial
years, but this may be extended if claims are made late in the warranty period and are subject to
confirmation by suppliers that component parts are defective. The timing and amount of economic outflows
is uncertain and estimates are based on past claims experience.
The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 13
‘Other expenses’.
AASB 137.85
Int 1
(f)
Under [detail circumstances] the Department has a legal or constructive obligation to dismantle [detail the
property] and restore the site. [Also detail expected timing of payments any significant uncertainties
regarding the timing and amounts of payments required to settle the obligations]
The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in Note 13
‘Other expenses’.
Commentary:
TI 1101
Deferred salary schemes represent agreements between the Department and individual
employees, whereby the employee sacrifices salary in order to purchase additional leave.
The liability for leave is measured on a discounted basis by calculating the present value
of estimated future cash outflows.
Disclose any 48/52 leave arrangements in place as a separate line item similar to the
Deferred salary scheme.
Where an agency recognises a provision for sick leave this should be disclosed as a
separate line item.
AASB 137.5(d), 84
Movements in other provisions
2015
$000
2014
$000
Movements in each class of provisions during the period, other
than employee benefits, are set out below.
Warranty provisions
Carrying amount at start of period
Additional/(reversals of) provisions recognised
Payments/other sacrifices of economic benefits
Unwinding of discount
Carrying amount at end of period
45
42
(28)
3
62
30
38
(25)
2
45
Remediation costs provisions
Carrying amount at start of period
Additional/(reversals of) provisions recognised
Payments/other sacrifices of economic benefits
Unwinding of the discount
Carrying amount at end of period
525
25
550
500
25
525
Employment on-cost provision
Carrying amount at start of period
Additional/(reversals of) provisions recognised
Payments/other sacrifices of economic benefits
Unwinding of the discount
Carrying amount at end of period
1,747
6,040
(5,388)
60
2,459
892
5,491
(4,686)
50
1,747
30.06.2015
Page 69 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 35. Other liabilities
2015
$000
2014
$000
Current
Other [describe]
Total current
-
-
Non-current
Other [describe]
Total non-current
-
-
Note 36. Equity
Framework
The Western Australian Government holds the equity interest in the Department on behalf
of the community. Equity represents the residual interest in the net assets of the
Department. The asset revaluation surplus represents that portion of equity resulting from
the revaluation of non-current assets.
AASB 101.25
TI 1103 Guidelines
Commentary:
The following disclosure is applicable when liabilities exceed assets:
“Liabilities exceed assets for the Department and therefore there is no residual interest in
the assets of the Department. This equity deficit arose through [provide details of the
circumstances e.g. expenses such as depreciation and accrual of employee entitlements
for leave not involving the payment of cash in the current period being recognised in the
Statement of Financial Position].”
AASB 101.106
Contributed equity
Balance at start of period
2015
$000
88,960
2014
$000
33,650
Contributions by owners
Capital appropriation
12,000
65,000
-
-
-
-
12,000
1,500
66,500
-
(1,090)
100,960
(10,100)
(11,190)
88,960
Other contributions by owners
Royalties for Regions Fund – Regional Infrastructure and
Headworks Account
Royalties for Regions Fund – Regional Community Services
Account
Transfer of net assets from other agencies
[Provide details]
Total contributions by owners
Distributions to owners
Transfer of net assets to other agencies:
Land for sale transferred to the DoL
Net assets transferred to Government:
Proceeds for disposal of assets paid to Consolidated Account
Total distributions to owners
Balance at end of period
30.06.2015
Page 70 of 102
Model Annual Report
Department - 30 June 2015
Reference
Commentary:
TI 955(3)(i)
Int 1038
Capital appropriations
AASB 1004.54-59
Transfer of net assets from other agencies
TI 955 Contributions by Owners Made to Wholly Owned Public Sector Entities designates
capital appropriations as contributions by owners in accordance with AASB
Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector
Entities.
AASB 1004 Contributions requires transfers of net assets as a result of a restructure of
administrative arrangements to be accounted for as contributions by owners and
distributions to owners.
Where activities are transferred from one agency to another agency as a result of a
restructure of administrative arrangements, AASB 1004 (paragraph 57) requires the
transferee agency to disclose the expenses and income attributable to the transferred
activities for the reporting period, showing separately those expenses and income
recognised by the transferor agency during the reporting period. Furthermore, AASB 1004
(paragraph 58) requires disclosures by class for each material transfer of assets and
liabilities in relation to a restructure of administrative arrangements, together with the
name of the counterparty transferor/transferee agency. In respect of transfers that are
individually immaterial, the assets and liabilities are to be disclosed on an aggregate basis.
TI 955 designates non-discretionary and non-reciprocal transfers of net assets between
state government agencies as contributions by owners in accordance with AASB
Interpretation 1038. Where the transferee agency accounts for a non-discretionary and
non-reciprocal transfer of net assets as a contribution by owners, the transferor agency
accounts for the transfer as a distribution to owners.
TI 955 (5)
Int 1038
AASB 101.106
Distribution to owners
TI 955 requires non-reciprocal transfers of net assets to Government to be accounted for
as distribution to owners in accordance with AASB Interpretation 1038.
Reserves
Asset revaluation surplus
Balance at start of period
Net revaluation increments/(decrements)
Land
Buildings
Plant and equipment
Infrastructure
Non-current assets classified as held for sale
Others [describe]
Balance at end of period
AASB 101.106
2015
$000
2014
$000
205,500
180,000
15,000
45,000
40,000
305,500
5,500
18,000
2,000
205,500
2015
$000
1,018,706
38,643
1,057,349
1,463,809
2014
$000
990,446
28,260
1,018,706
1,313,166
Accumulated surplus/(deficit)
Balance at start of period
Result for the period
Income and expense recognised directly in equity
Balance at end of period
Total equity at end of period
30.06.2015
Page 71 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 37. Notes to the Statement of Cash Flows
AASB 107.45
Reconciliation of cash
Cash at the end of the financial year as shown in the Statement of Cash Flows is
reconciled to the related items in the Statement of Financial Position as follows:
Cash and cash equivalents
Restricted cash and cash equivalents (Note 20 ‘Restricted cash
and cash equivalents’)
2015
$000
8,308
2014
$000
2,795
110
8,418
100
2,895
AASB 107.Aus20.2 Reconciliation of net cost of services to net cash flows provided by/(used in)
operating activities
Net cost of services
Non-cash items
Depreciation and amortisation expense (Note 9 ‘Depreciation
and amortisation expense’)
Doubtful debts expense (Note 13 ‘Other expenses’)
Superannuation expense
Services received free of charge (Note 19 ‘Income from State
Government’)
Finance costs – unwinding of discounts (Note 10 ‘Finance costs’)
Net (gain)/loss on disposal of property, plant and equipment
(Note 18 ‘Net gain/(loss) on disposal of non-current assets')
Write down of non-current assets classified as held for sale
(Note 13 ‘Other expenses’)
Loss from earthquake (Note 13 ‘Other expenses’)
Adjustment for other non-cash items
(Profit)/loss on sale of investment
(Increase)/decrease in assets
Current receivables(a)
Current inventories
Other current assets
Non-current receivables
Non-current inventories
Increase/(decrease) in liabilities
Current payables(a)
Current provisions
Other current liabilities
Non-current provisions
Other non-current liabilities
Net GST receipts/(payments)(b)
Change in GST in receivables/payables(c)
Net cash provided by/(used in) operating activities
2015
$000
(766,798)
2014
$000
(686,891)
33,330
110
-
33,820
100
-
1,595
88
1,450
77
(170)
(4,700)
470
(88)
-
1,100
1,250
(32)
-
(6,508)
(1,935)
-
(266)
(3,625)
250
-
726
1,262
21
13,185
65
(72)
(724,719)
780
6,208
20
15
(65)
256
(650,253)
(a)
Note that the Australian Taxation Office (ATO) receivable/payable in respect of GST and the
receivable/payable in respect of the sale/purchase of non-current assets are not included in these items as
they do not form part of the reconciling items.
(b)
This is the net GST paid/received, i.e. cash transactions.
(c)
This reverses out the GST in receivables and payables.
30.06.2015
Page 72 of 102
Model Annual Report
Department - 30 June 2015
Reference
Commentary:
AASB 107.43, 44,
50
Non-cash financing and investing activities
Information about transactions and other events which do not result in any cash flows
during the reporting period, but affect assets and liabilities that are recognised, must be
disclosed in the general purpose financial statements where they:
(a) involve external parties; and
(b) relate to the financing, investing and other non-operating activities of the entity.
The following are examples of non-cash financing and investing transactions and other
events:
(a) acquisition of assets by entering into finance leases; and
(b) exchange of non-cash assets or liabilities for other non-cash assets or liabilities.
TI 1102(10)
Note 38. Services provided free of charge
2015
$000
2014
$000
110
110
100
100
2015
$000
2014
$000
Minimum lease payment commitments in relation to finance
leases are payable as follows:
Within 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Minimum finance lease payments
Less future finance charges
Present value of finance lease liabilities
650
2,280
15
2,945
(140)
2,805
800
2,250
120
3,170
(300)
2,870
The present value of finance leases payable is as follows:
Within 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Present value of finance lease liabilities
640
2,160
5
2,805
700
2,050
120
2,870
600
2,205
2,805
650
2,220
2,870
During the period the following services were provided to other
agencies free of charge for functions outside the normal
operations of the Department:
ABC Agency - Use of photocopier
AASB 101.114(d)
Note 39. Commitments
Finance lease commitments
AASB 117.31(b)
Included in the financial statements as:
Current (Note 32 ‘Borrowings’)
Non-current (Note 32 ‘Borrowings’)
AASB 117.31(e)
The Department has the option to purchase leased assets at their agreed fair value on
expiry of the lease. These leasing arrangements do not have escalation clauses, other
than in the event of payment default. There are no restrictions imposed by these leasing
arrangements on other financing transactions. Certain finance leases have a contingent
rental obligation; however these are not material when compared to the total lease
payments made.
30.06.2015
Page 73 of 102
Model Annual Report
Department - 30 June 2015
Reference
Commentary:
The present value of finance leases payable within 1 year is generally greater than the
outstanding liability recognised as current liabilities (Note 32 ‘Borrowings’) in the financial
statements. This is due to minimum lease payments affecting only small reduction of the
outstanding liability and satisfying large finance charge early in the lease term. As the
entity approaches the contractual end date, the finance charge becomes smaller and the
outstanding liability is settled rapidly.
AASB 117.35(a)
Non-cancellable operating lease commitments
Commitments for minimum lease payments are payable as
follows:
Within 1 year
Later than 1 year and not later than 5 years
Later than 5 years
2015
$000
2014
$000
5,400
22,126
27,526
5,000
20,000
25,000
AASB 117.35(d)
The Department has entered into a property lease which is a non-cancellable lease with a
five year term, with rent payable monthly in advance. Contingent rent provisions within the
lease agreement require that the minimum lease payments shall be increased by the lower
of CPI or 3% per annum. An option exists to renew the lease at the end of the five year
term for an additional term of five years.
AASB 117.31(c),
35(c)
Commentary:
Where material, contingent rents shall be charged as expenses in the periods in which
they are incurred and must be disclosed separately.
The commitments below are inclusive of GST.
AASB 101.114(d)(i)
Capital expenditure commitments
TI 1103 Guidelines
Capital expenditure commitments, being contracted capital
expenditure additional to the amounts reported in the financial
statements, are payable as follows:
Within 1 year
Later than 1 year and not later than 5 years
Later than 5 years
AASB 101.114(d)
Other expenditure commitments
TI 1103 Guidelines
Other expenditure commitments [describe] contracted for at the
end of the reporting period but not recognised as liabilities, are
payable as follows:
Within 1 year
Later than 1 year and not later than 5 years
Later than 5 years
30.06.2015
2015
$000
2014
$000
27,000
61,000
88,000
55,000
75,000
130,000
2015
$000
2014
$000
-
-
Page 74 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 101.105
AASB 137.86-92
Note 40. Contingent liabilities and contingent assets
Contingent liabilities
The following contingent liabilities are additional to the liabilities included in the financial
statements:
Litigation in progress
A plaintiff has made a claim for $50,000 in relation to an alleged breach of copyright.
Liability has been denied and any legal claim will be defended.
Native title claims
The Department’s land is subject to a number of native title claims that have yet to be
assessed by the National Native Title Tribunal. The financial effect should these claims be
successful cannot be estimated at this time.
Contaminated sites
Under the Contaminated Sites Act 2003, the Department is required to report known and
suspected contaminated sites to the Department of Environment and Conservation (DEC).
In accordance with the Act, DEC classifies these sites on the basis of the risk to human
health, the environment and environmental values. Where sites are classified as
contaminated – remediation required or possibly contaminated – investigation required,
the Department may have a liability in respect of investigation or remediation expenses.
During the year the Department reported three suspected contaminated sites to DEC.
These have yet to be classified. The Department is unable to assess the likely outcome of
the classification process, and accordingly, it is not practicable to estimate the potential
financial effect or to identify the uncertainties relating to the amount or timing of any
outflows. Whilst there is no possibility of reimbursement of any future expenses that may
be incurred in the remediation of these sites, the Department may apply for funding from
the Contaminated Sites Management Account to undertake further investigative work or to
meet remediation costs that may be required.
Other
[describe]
AASB 139.47(c)
AASB 7.3(d)
Commentary:
AASB 137.89
Contingent assets
Agencies that have entered into contracts or arrangements as the issuer of ‘financial
guarantee contracts’ shall recognise and measure the contracts in accordance with
AASB 139. Disclosures for these contracts are required under AASB 7.B9, B10(c),
B10A(b) and B11C(c).
The following contingent assets are additional to the assets included in the financial
statements:
Litigation in progress
A negligence claim has been filed against a supplier for faulty materials. The potential
financial effect of the success of the claim cannot be reliably measured at this time.
Other
[describe]
AASB 137.34
Commentary:
A contingent asset is disclosed only where an inflow of economic benefits is probable.
30.06.2015
Page 75 of 102
Model Annual Report
Department - 30 June 2015
Reference
Note 41. Events occurring after the end of the reporting period
Commentary:
AASB 110.3
AASB 110.19
AASB 110.3 notes that events after the end of the reporting period are those events,
favourable and unfavourable, that occur between the end of the reporting period and the
date when the financial statements are authorised for issue. Two types of events can be
identified:

those that provide evidence of conditions that existed at the end of the reporting
period (adjusting events after the end of the reporting period); and

those that are indicative of conditions that arose after the end of the reporting period
(non-adjusting events after the end of the reporting period).
Updating Disclosure about Conditions at the End of the Reporting Period
If an entity receives information after the end of the reporting period about conditions that
existed at the end of the reporting period, it shall update disclosures that relate to these
conditions, in light of the new information.
AASB 110.21
Non-adjusting Events after the end of the Reporting Period
If non-adjusting events after the end of the reporting period are material, non-disclosure
could influence the economic decisions of users taken on the basis of the financial report.
Accordingly, an entity shall disclose the following for each material category of
non-adjusting event after the end of the reporting period:

the nature of the event; and

an estimate of its financial effect, or a statement that such an estimate cannot be
made.
Note 42. Explanatory statement
TI 945(3)
AASB 1055
Major variances between estimates (original budget) and actual results for 2015, and
between the actual results for 2014 and 2015 are shown below. Major variances are
considered to be those greater than 10% or $10 million.
Commentary
Thresholds for providing narrative on major variances is stipulated in TI 945 for agencies
within the General Government Sector.
30.06.2015
Page 76 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
TI 945
Statement of Comprehensive Income
(Controlled Operations)
Employee benefits expense
Supplies and services
Depreciation and amortisation expense
Finance costs
Accommodation expenses
Grants and subsidies
Cost of sales
Loss on disposal of non-current assets
Other expenses
Total cost of services
Income
Revenue
User charges and fees
Sales
Commonwealth grants and contributions
Interest revenue
Other revenue
Total Revenue
Gains
Gain on disposal of non-current assets
Other gains
Total Gains
Total income other than income from State
Government
NET COST OF SERVICES
Variance
Note
$000
Estimate
2015
$000
Actual
2015
$000
Actual
2014
$000
Variance
between
estimate and
actual
$000
1,A
687,204
66,487
34,530
279
6,843
9,904
5,156
12,945
823,348
669,757
61,980
33,330
263
6,963
9,801
5,560
12,245
799,899
599,002
56,345
33,820
347
6,330
8,910
3,700
13,074
721,528
(17,447)
(4,507)
(1,200)
(16)
120
(103)
404
(700)
(23,449)
70,755
5,635
(490)
(84)
633
891
1,860
(829)
78,371
2
14,654
13,748
1,050
29,452
16,497
14,267
1,100
31,864
14,997
12,970
1,000
28,967
1,843
519
50
2,412
1,500
1,297
100
2,897
C
160
1,000
1,160
30,612
170
1,067
1,237
33,101
4,700
970
5,670
34,637
10
67
77
2,489
(4,530)
97
(4,433)
1,536
792,736
766,798
686,891
(25,938)
79,907
B
30.06.2015
Variance
between actual
results for 2015
and 2014
$000
Page 77 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
TI 945
Income from State Government
Service appropriation
Liabilities assumed
Assets transferred
Services received free of charge
Royalties for Regions Fund
Total income from State Government
SURPLUS/(DEFICIT) FOR THE PERIOD
OTHER COMPREHENSIVE INCOME
Items not reclassified subsequently to profit or
loss
Changes in asset revaluation surplus
Total other comprehensive income
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD
Statement of Financial Position
(Controlled Operations)
ASSETS
Current Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Inventories
Receivables
Amounts receivable for services
Other current assets
Non-current assets classified as held for sale
Total Current Assets
Variance
Note
$000
Estimate
2015
$000
Actual
2015
$000
Actual
2014
$000
Variance
between
estimate and
actual
$000
D
794,750
1,430
796,180
3,444
803,846
1,595
805,441
38,643
713,701
1,450
715,151
28,260
9,096
165
9,261
35,199
90,145
145
90,290
10,383
E
95,000
95,000
98,444
100,000
100,000
138,643
25,500
25,500
53,760
5,000
5,000
40,199
74,500
74,500
84,883
F
5,954
55
17,210
7,844
15,260
590
2,700
49,613
8,308
50
18,310
8,555
14,239
550
2,900
52,912
2,795
50
16,375
2,150
18,137
560
2,628
42,695
2,355
(5)
1,100
711
(1,021)
(40)
200
3,300
5,513
1,935
6,405
(3,898)
(10)
272
10,217
3
G
H
I
J
30.06.2015
Variance
between actual
results for 2015
and 2014
$000
Page 78 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
TI 945
Variance
Note
$000
Non-Current Assets
Restricted cash and cash equivalents
Inventories
Receivables
Amounts receivable for services
Property, plant and equipment
Infrastructure
Intangible assets
Other non-current assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Payables
Borrowings
Amounts due to the Treasurer
Provisions
Other current liabilities
Liabilities directly associated with non-current
assets classified as held for sale
Total Current Liabilities
Non-Current Liabilities
Payables
Borrowings
Provisions
Other non-current liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
K
L
M
N
O
P
Q
NET ASSETS
30.06.2015
Estimate
2015
$000
Actual
2015
$000
Actual
2014
$000
Variance
between
estimate and
actual
$000
Variance
between actual
results for 2015
and 2014
$000
65
69,037
732,900
641,790
505
1,444,297
1,493,910
60
75,933
739,933
632,490
455
1,448,871
1,501,783
50
47,925
648,766
601,077
1,008
60
1,298,886
1,341,581
(5)
6,896
7,033
(9,300)
(50)
4,574
7,874
10
28,008
91,167
31,413
(553)
(60)
149,985
160,202
2,580
660
2,650
18,417
-
2,787
600
2,400
20,115
-
2,040
650
7,970
14,077
-
207
(60)
(250)
1,698
-
747
(50)
(5,570)
6,038
-
24,307
25,902
24,737
1,595
1,165
2,780
9,029
11,809
36,116
2,205
9,867
12,072
37,974
2,220
1,458
3,678
28,415
(575)
838
263
1,858
(15)
8,409
8,394
9,559
1,457,794
1,463,809
1,313,166
6,016
150,643
Page 79 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
TI 945
EQUITY
Contributed equity
Reserves
Accumulated surplus/(deficit)
TOTAL EQUITY
Statement of Cash Flows
(Controlled Operations)
CASH FLOWS FROM STATE GOVERNMENT
Service appropriation
Capital appropriations
Holding account drawdown
Royalties for Regions Fund
Non-retained revenue distributed to owner
Net cash provided by State Government
CASH FLOWS FROM OPERATING ACTIVITIES
Payments
Employee benefits
Supplies and services
Finance costs
Accommodation
Grants and subsidies
GST payments on purchases
GST payments to taxation authority
Other payments
Variance
Note
$000
Estimate
2015
$000
Actual
2015
$000
Actual
2014
$000
Variance
between
estimate and
actual
$000
R
S
100,300
296,700
1,060,793
1,457,793
100,960
305,500
1,057,349
1,463,809
88,960
205,500
1,018,706
1,313,166
660
8,800
(3,444)
6,016
12,000
100,000
38,643
150,643
T
4,U
V
763,234
10,125
16,502
789,861
761,659
12,000
18,137
791,796
673,242
65,000
7,688
(10,100)
735,830
(1,575)
1,875
1,635
1,935
88,417
(53,000)
10,449
10,100
45,866
5,W
(696,960)
(72,766)
(191)
(6,483)
(9,904)
(7,648)
(4,973)
(663,874)
(66,677)
(175)
(6,292)
(9,801)
(7,336)
(6,618)
(593,654)
(61,666)
(270)
(5,720)
(8,910)
(6,829)
(6,016)
33,086
6,089
16
551
103
312
(1,645)
(70,220)
(5,011)
95
(572)
(891)
(507)
(602)
X
30.06.2015
Variance
between actual
results for 2015
and 2014
$000
Page 80 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
TI 945
Estimate
2015
$000
Actual
2015
$000
Actual
2014
$000
Variance
between
estimate and
actual
$000
9,626
18,142
1,050
1,045
2,777
5,506
1,150
(759,990)
9,989
16,497
1,100
990
2,345
5,056
1,067
(724,719)
9,081
14,997
1,000
900
1,730
5,034
970
(650,253)
363
(1,645)
50
(55)
(432)
(450)
(83)
36,261
908
1,500
100
90
615
22
97
(74,466)
Z
(29,783)
(58,727)
(96,992)
(28,944)
38,265
AA
7,800
(21,983)
2,798
(55,929)
10,100
(86,892)
(5,002)
(33,946)
(7,302)
30,963
AB
(7,400)
-
(8,035)
-
(1,090)
-
(635)
-
(6,945)
-
AC
2,650
(4,750)
2,400
(5,635)
1,160
70
(250)
1,240
(885)
(5,705)
3,139
5,523
(1,245)
2,385
6,768
2,895
2,895
4,140
-
(1,245)
6,034
8,418
2,895
2,385
5,523
Variance
Note
$000
Receipts
Sale of goods and services
User charges and fees
Commonwealth grants and contributions
Interest received
GST receipts on sales
GST receipts from taxation authority
Other receipts
Net cash provided by/(used in) operating
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments
Purchase of non-current assets
Receipts
Proceeds from sale of non-current assets
Net cash provided by/(used in) investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payments
Repayment of borrowings
Other repayments
Receipts
Proceeds from borrowings
Other proceeds
Net cash provided by/(used in) financing
activities
Y
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of the
period
CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD
30.06.2015
Variance
between actual
results for 2015
and 2014
$000
Page 81 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
TI 945
Major Estimate and Actual (2015) Variance Narratives for Controlled
Operations
1) Employee benefits expense underspent by $17.5 million (2.5%) as the budget was based on all
employees of the merging business unit would join the Department. Instead, a number of
employees were re-deployed elsewhere.
2) User charges and fees exceeded estimates by $1.8 million (12.6%) due to [insert narrative].
3) Services received free of charge exceeded estimates by $0.2 million (11.5%) due to [insert
narrative].
4) Non-current borrowings trailed estimates by $0.6 million (20.7%) due to [insert narrative].
5) Capital appropriations exceeded estimates by $1.9 million (18.5%) due to a new item authorised
pursuant to section 27 of the FMA during the year (being for [insert narrative]).
6) Employee benefits payments underspent by $33.1 million (2.5%) due to [insert narrative].
7) Other payments underspent by $1.6 million (33.1%) due to [insert narrative].
8) GST receipts on sales trailed estimates by $0.4 million (15.6%) due to [insert narrative].
9) Purchase of non-current assets exceeded estimates by $28.9 million (97.2%) due to [insert
narrative].
10) Proceeds from sale of non-current assets trailed estimates by $5.0 million (64.1%) due to
deferral of plans to divest assets until amalgamation is finalised.
Major Actual (2015) and Comparative (2014) Variance Narratives for
Controlled Operations
A) Employee benefits expense increased by $70.7 million (11.8%) due to a Machinery of
Government merger, augmenting employee numbers in the Department.
B) Cost of sales increased by $1.9 million (50.3%) due to [insert narrative].
C) Gain on disposal of non-current assets decreased by $4.5 million (12.6%) due to [insert
narrative].
D) Service appropriations increased by $90.1 million (12.6%) due to a Machinery of Government
merger of additional business units within the Department.
E) Asset revaluation surpluses increased by $74.5 million (292%) due to significant increases in
construction costs for buildings and infrastructure.
F) Current cash and cash equivalents increased by $5.5 million (197.2%) due to [insert narrative].
G) Current inventories increased by $1.9 million (11.8%) due to [insert narrative].
H) Current receivables increased by $6.4 million (297.7%) due to [insert narrative].
I) Current amounts receivable for services decreased by $3.9 million (21.5%) due to [insert
narrative].
J) Non-current assets classified as held for sale increased by $10.2.0 million (10.4%) due to the
Machinery of Government merge.
K) Non-current amounts receivable for services increased by $28.0 million (58.4%) due to the
Machinery of Government merge.
L) Property, plant and equipment increased by $91.2 million (14.1%) due to [insert narrative].
M) Infrastructure assets increased by $31.4 million (5.2%) due to [insert narrative].
N) Intangible assets decreased by $0.6 million (54.8%) due to [insert narrative].
O) Current payables increased by $0.7 million (36.6%) due to [insert narrative].
P) Current amounts due to the Treasurer decreased by $-5.57 million (69.9%) due to [insert
narrative].
Q) Current provisions increased by $6.0 million (42.9%) due to [insert narrative].
R) Non-current provisions increased by $8.4 million (576.7%) due to [insert narrative].
S) Contributed equity increased by $12.0 million (13.5%) due to the Machinery of Government
merge.
T) Reserves increased by $100.0 million (48.7%) due to [insert narrative].
U) Service appropriation receipts increased by $88.4 million (13.1%) due to [insert narrative].
V) Capital appropriation receipts decreased by $53.0 million (81.5%) due to [insert narrative].
W) Holding account drawdown receipts increased by $10.4 million (135.9%) due to [insert narrative].
X) Non-retained revenue distributed to owner decreased by $10.1 million (100.0%) due to [insert
narrative].
Y) Employee benefit payments increased by $33.1 million (11.8%) due to [insert narrative].
Z) Finance cost payments decreased by $0.1 million (35.1%) due to [insert narrative].
AA) GST receipts on sales increased by $0.6 million (35.5%) due to due to increasing sales activity.
AB) Purchases of non-current assets decreased by $38.3 million (39.5%) due to [insert narrative].
AC) Proceeds from sale of non-current assets decreased by $7.3 million (72.3%) due to [insert
30.06.2015
Page 82 of 102
Model Annual Report
Department - 30 June 2015
Reference
narrative].
AD) Repayment of borrowings increased by $6.9 million (637.2%) due to [insert narrative].
AE) Proceeds from borrowings increased by $1.2 million (106.9%) due to [insert narrative].
TI 945(3)(ii)
Commentary:
Narratives are required for major variances between actuals versus comparatives, and,
actuals versus original estimates and include commentary on:

variances greater than 10% or $10 million;

where qualitative evidence indicates omission of narrative information could
potentially mislead readers of financial statements;

each authorisation to expend in advance of appropriation approved in accordance
with section 27 of the Act; or,

items requiring narrative disclosure under written laws.
Explanatory variance narratives are required to disclose details of, and the reasons for, all
major variances in the elements comprising the total. This includes variances that offset
each other.
Note 43. Financial instruments
Commentary:
AASB 7.7, 31
Disclose information that enables users of its financial statements to evaluate the
significance of financial instruments for its financial position and performance. This shall
include information that enables users to evaluate the nature and extent of risks arising
from financial instruments to which the agency is exposed at the end of the reporting
period.
AASB 7 requires disclosure of information used by key management personnel to
measure and manage risk. The agency shall decide, in light of the circumstances, how
much detail it provides to satisfy the requirements of this Standard, how much emphasis it
places on different aspects of the requirements and how it aggregates information to
display the overall picture without combining information with different characteristics.
The minimum disclosures set out in this note of the model annual report are provided by
way of example only. They do not necessarily represent the only disclosures which may
be appropriate for particular financial instruments and do not cover all financial
instruments that may be used in practice, or importantly, reflect the manner in which the
agency reports internally to its key management personnel.
AASB 7.21, B5, 33,
34, 42B
AASB 7.31, 33
AASB 7 requires comprehensive disclosure requirements for financial instruments
including, but not limited to, the following:

the measurement basis (bases) and the criteria used to determine classification for
different types of financial instruments;

the qualitative and quantitative disclosures for each type of risk (e.g. credit risk,
liquidity risk, and market risk) that the agency is exposed to;

qualitative disclosures concerning the exposures to risk and how they arise; the
objectives, policies and processes for managing the risk and methods used to
measure the risk; and any changes in these from the previous period; and

disclosures enabling financial statement users to: understand the relationship
between transferred financial assets not derecognised in their entirety and associated
liabilities, and, evaluate the nature and risks associated with continuing involvement in
derecognised financial assets.
(a) Financial risk management objectives and policies
Financial instruments held by the Department are cash and cash equivalents, restricted
cash and cash equivalents, loans and receivables, payables, WATC/Bank borrowings,
finance leases, and Treasurer’s advances. The Department has limited exposure to
financial risks. The Department’s overall risk management program focuses on managing
the risks identified below.
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Reference
AASB 7.33, 34(c),
36(c)
Credit risk
Credit risk arises when there is the possibility of the Department’s receivables defaulting
on their contractual obligations resulting in financial loss to the Department.
The maximum exposure to credit risk at the end of the reporting period in relation to each
class of recognised financial assets is the gross carrying amount of those assets inclusive
of any allowance for impairment as shown in the table at Note 43(c) ‘Financial instruments
disclosures’ and Note 22 ‘Receivables’.
Credit risk associated with the Department’s financial assets is minimal because the main
receivable is the amounts receivable for services (holding account). For receivables other
than government, the Department trades only with recognised, creditworthy third parties.
The Department has policies in place to ensure that sales of products and services are
made to customers with an appropriate credit history. In addition, receivable balances are
monitored on an ongoing basis with the result that the Department’s exposure to bad
debts is minimal. At the end of the reporting period there were no significant
concentrations of credit risk.
Commentary:
Disclose policies for managing any past due receivables.
Allowance for impairment of financial assets is calculated based on objective evidence
such as observable data in client credit ratings. For financial assets that are either past
due or impaired, refer to Note 43(c) ‘Financial instrument disclosures’.
AASB 7.33, 39(c)
Liquidity risk
Liquidity risk arises when the Department is unable to meet its financial obligations as they
fall due.
The Department is exposed to liquidity risk through its trading in the normal course of
business.
The Department has appropriate procedures to manage cash flows including drawdown of
appropriations by monitoring forecast cash flows to ensure that sufficient funds are
available to meet its commitments.
AASB 7.33
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates and
interest rates will affect the Department’s income or the value of its holdings of financial
instruments. The Department does not trade in foreign currency and is not materially
exposed to other price risks [for example, equity securities or commodity prices changes].
The Department’s exposure to market risk for changes in interest rates relates primarily to
the long-term debt obligations.
All borrowings are due to the Western Australian Treasury Corporation (WATC) and are
repayable at fixed rates with varying maturities. Other than as detailed in the interest rate
sensitivity analysis table at Note 42(c), the Department is not exposed to interest rate risk
because the majority of cash and cash equivalents and restricted cash are non-interest
bearing and it has no borrowings other than the Treasurer’s advance (non-interest
bearing), WATC borrowings and finance leases (fixed interest rate).
AASB 7.33
Commentary:
Disclose any changes from the previous period in respect of the exposures for each type
of risk, such as how they arise, how they are managed and the methods used to measure
such risks.
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Reference
AASB 7.8
(b) Categories of financial instruments
The carrying amounts of each of the following categories of financial assets and financial
liabilities at the end of the reporting period are:
AASB 7.8(c)
AASB 7.8(f)
AASB 132.AG12
Financial Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Loans and receivables(a)
Financial Liabilities
Financial liabilities measured at amortised cost
2015
$000
2014
$000
8,308
110
98,306
2,795
100
67,798
7,992
12,880
(a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable).
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Reference
(c) Financial instrument disclosures
Credit risk
AASB 7.6, 7, 34,
36(a), 37(a –(b)
The following table details the Department’s maximum exposure to credit risk and the ageing analysis of financial assets. The Department’s
maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses
the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to
senior management of the Department.
AASB 7.36(b), 38
The Department does not hold any collateral as security or other credit enhancement relating to the financial assets it holds.
Ageing analysis of financial assets
Past due but not impaired
2015
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables(a)
Loans and advances
Amounts receivable for services
2014
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables(a)
Loans and advances
Amounts receivable for services
Carrying
Amount
$000
Not past due
and not
impaired
$000
Up to
1 month
$000
8,308
110
8,134
90,172
106,724
8,308
110
7,686
90,172
106,276
2,795
100
1,736
66,062
70,693
2,795
100
1,618
66,062
70,575
1-3 months
$000
3 months to
1 year
$000
1-5 years
$000
More than
5 years
$000
330
330
88
88
22
22
-
-
92
92
17
17
6
6
-
-
Impaired
financial
assets
$000
8(b)
8
3(b)
3
(a)
The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
(b)
A particular debtor has filed for bankruptcy and it is expected that only $8,000 in 2015 (2014: $3,000) of the amount owing will be recovered. The carrying amount of the receivable before deducting the
impairment loss was $28,000 (2014: $12,000).
30.06.2015
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Department - 30 June 2015
Reference
AASB 7.6, 7, 34, 39,
B11E
Liquidity risk and interest rate exposure
The following table details the Department’s interest rate exposure and the contractual maturity analysis of financial assets and financial
liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying
amounts of each item.
Interest rate exposure and maturity analysis of financial assets and financial liabilities
Interest rate exposure
2015
Financial Assets
Cash and cash equivalents
Restricted cash and cash
equivalents
Receivables(a)
Loans and advances
Amounts receivable for services
Financial Liabilities
Payables
WATC/Bank borrowings
Finance lease liabilities
Amounts due to the Treasurer
(a)
Maturity dates
Weighted
Average
Effective
Interest
Rate
%
Carrying
Amount
$000
Fixed
interest
rate
$000
Variable
interest
rate
$000
Noninterest
bearing
$000
Nominal
Amount
$000
Up to
1 month
$000
1-3
months
$000
3 months
to 1 year
$000
1-5 years
$000
More than
5 years
$000
4.6
8,308
110
-
110
8,308
-
8,308
110
8,308
30
10
10
60
-
-
8,134
90,172
106,724
-
110
8,134
90,172
106,614
8,134
90,172
106,724
8,134
16,552
9,017
9,017
18,034
18,034
27,051
27,051
36,070
36,070
7.1
-
2,787
2,805
2,400
7,992
2,805
2,805
-
2,787
2,400
5,187
2,787
2,945
2,400
8,132
2,787
240
3,027
150
960
1,110
500
1,200
1,700
2,280
2,280
15
15
The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
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Reference
Interest rate exposure and maturity analysis of financial assets and financial liabilities
Interest rate exposure
2014
Financial Assets
Cash and cash equivalents
Restricted cash and cash
equivalents
Receivables(a)
Loans and advances
Amounts receivable for services
Financial Liabilities
Payables
WATC/Bank borrowings
Finance lease liabilities
Amounts due to the Treasurer
(a)
Maturity dates
Weighted
Average
Effective
Interest
Rate
%
Carrying
Amount
$000
Fixed
interest
rate
$000
Variable
interest
rate
$000
Noninterest
bearing
$000
Nominal
Amount
$000
Up to
1 month
$000
1-3
months
$000
3 months
to 1 year
$000
1-5 years
$000
More than
5 years
$000
4.6
2,795
100
-
100
2,795
-
2,795
100
2,795
30
10
10
50
-
-
1,736
66,062
70,693
-
100
1,736
66,062
70,593
1,736
66,062
70,693
1,736
4,631
6,606
6,606
13,212
13,212
19,818
19,818
26,426
26,426
7.1
-
2,040
2,870
7,970
12,880
2,870
2,870
-
2,040
7,970
10,010
2,040
3,170
7,970
13,180
2,040
797
2,837
200
3,188
3,388
600
3,985
4,585
2,250
2,250
120
120
The amount of receivables excludes the GST recoverable from the ATO (statutory receivable).
30.06.2015
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Department - 30 June 2015
Reference
AASB 7.39(b)
Commentary:
Disclose a maturity analysis for derivative financial liabilities where applicable. The
maturity analysis shall include the remaining contractual maturities for those derivative
financial liabilities for which contractual maturities are essential for an understanding of
the timing of the cash flows.
AASB 7.40, B17-21
Interest rate sensitivity analysis
The following table represents a summary of the interest rate sensitivity of the
Department’s financial assets and liabilities at the end of the reporting period on the
surplus for the period and equity for a 1% change in interest rates. It is assumed that the
change in interest rates is held constant throughout the reporting period.
-100 basis points
2015
Financial Assets
Restricted cash and cash
equivalents
Financial Liabilities
[List details]
Total Increase/(Decrease)
Surplus
$000
Equity
$000
Surplus
$000
Equity
$000
50
(0.5)
(0.5)
0.5
0.5
-
(0.5)
(0.5)
0.5
0.5
-100 basis points
2014
Financial Assets
Restricted cash and cash
equivalents
Financial Liabilities
[List details]
Total Increase/(Decrease)
+100 basis points
Carrying
amount
$000
+100 basis points
Carrying
amount
$000
Surplus
$000
Equity
$000
Surplus
$000
Equity
$000
50
(0.5)
(0.5)
0.5
0.5
-
(0.5)
(0.5)
0.5
0.5
Commentary:
Take account of past performance, future explanations, economic forecasts, and
management’s knowledge and experience of the financial markets to determine the
possible movements that are reasonably likely over the next 12 months.
AASB 7.40(c)
Disclose any changes in the methods and assumptions used in the previous period.
If applicable, a sensitivity analysis for currency risk and other price risks should be
disclosed.
AASB 7.25, 27, 29
Fair values
All financial assets and liabilities recognised in the Statement of Financial Position,
whether they are carried at cost or fair value, are recognised at amounts that represent a
reasonable approximation of fair value unless otherwise stated in the applicable notes.
Commentary:
AASB 7.27
Where a material difference between the carrying amount and fair value exists in respect
of financial assets or liabilities, then the aggregate fair value of the class of financial
assets or liabilities should be disclosed. When determining the values for each class of
financial instruments the agency shall disclose the method and, when a valuation
technique is used, the assumptions applied. If there has been a change in valuation
techniques, the agency shall disclose that change and the reasons for making it.
AASB 7.27A, 27B
For fair value measurements recognised in the Statement of Financial Position the
agency shall make various disclosures for each class, the level in the fair value hierarchy
30.06.2015
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Reference
(level 1,2,3) and various disclosures relating to these.
AASB 12.21
Note 44. Joint operations
Name of Operation
JO 1
Principal Place of
Business
Western Australia
JO 2
Western Australia
Principal Activity
Ownership
Interest (%)
Training Centre
Construction
College Construction
50
50
Commentary:
Joint Operations
Disclosures for joint operations, subject to applicability and materiality, are illustrated
above. These disclosures are also required for joint ventures.
Joint Ventures
Additional minimum disclosure requirements apply to joint arrangements classified as
joint ventures. Requirements for joint ventures, subject to applicability and materiality,
include the following:
AASB 12.21(b)
(a) whether investments in joint ventures are measured using the equity method or at
fair value;
(b) additional summarised financial information about the joint venture;
(c) the fair value of an investment in the joint venture if the joint venture is accounted for
using the equity method where there is a quoted market price for the investment;
AASB 12.22
(d) the nature and extent of any significant restrictions on the ability of joint ventures to
transfer funds to the agency in the form of cash dividends, or to repay loans or
advances made by the agency;
AASB 12.23(a)
(e) information about capital commitments relevant to joint ventures; and
AASB 12.23(b)
(f) information about contingent liabilities relevant to joint ventures.
TI 952(3)
Note 45. Remuneration of senior officers
TI 952(3)(i)(c)
The number of senior officers whose total fees, salaries, superannuation, non-monetary
benefits and other benefits for the financial year fall within the following bands are:
TI 952(3)(i)(a)
Remuneration Band ($)
50,001 – 60,000
60,001 – 70,000
100,001 – 110,000
110,001 – 120,000
130,001 – 140,000
2015
1
1
2
1
1
2014
1
2
2
1
Base remuneration and superannuation
Annual leave and long service leave accruals
Other benefits
Total remuneration of senior officers
$000
610
(50)
20
580
$000
490
30
20
540
Total remuneration includes the superannuation expense incurred by the Department in
respect of senior officers.
30.06.2015
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Model Annual Report
Department - 30 June 2015
Reference
TI 952(3)(i)(d)
TI 952 Guidelines
Commentary:
Disclose the number of senior officers who are members of the Pension Scheme.
Remuneration should be determined by applying the relevant requirements under
AASB 119 ‘Employee Benefits’ as the basis for measuring the components of
remuneration. Employee benefits are all forms of consideration given by an agency in
exchange for service rendered. The calculations are to be made on an accrual
accounting basis to ensure that the total remuneration disclosed does not necessarily
represent the cash paid to a senior officer in a single reporting period.
Base remuneration and superannuation – cash remuneration received in the financial
year, adjusted for salary/superannuation accruals (i.e. minus cash received in the current
year in relation to remuneration earned in prior years and plus remuneration earned in
the current year but not yet received in cash).
AASB 1054.10
Note 46. Remuneration of auditor
Remuneration paid or payable to the Auditor General in respect of the audit for the
current financial year is as follows:
Auditing the accounts, controls, financial statements and key
performance indicators
AASB 1054.10, 11
2015
$000
2014
$000
55
50
Commentary:
AASB 1054 requires agencies to disclose the amounts paid or payable to:
(a) the auditor of the entity for an audit or a review of the financial statements of the
entity; and
(b) the auditor of the entity for non-audit services in relation to the entity, disclosing
separately the nature and amount of each of the non-audit services provided by the
auditor.
The amounts disclosed above differ from the amounts recognised in Note 13 ‘Other
expenses’ and represents the totals of interim and final audit fees for the current year
financial statements.
TI 951(3), (4)
Note 47. Related bodies
The Department had two related bodies during the financial year meeting all operating
expenses of:
2015
$000
6,290
75
TNT Agency
ABN Agency
2014
$000
6,540
70
The transactions and results of the related bodies have been included in the financial
statements.
Commentary:
A related body is a body that receives more than half of its funding and resources from
an agency and is subject to operational control by that agency.
30.06.2015
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Reference
TI 951(5), (6)
Note 48. Affiliated bodies
Excellent Board is a government affiliated body that received administrative support and
a grant of $2,300,000 (2014: $1,200,000) from the Department. The Excellent Board is
not subject to operational control by the Department.
Commentary:
An affiliated body is a body that receives more than half its funding and resources from
an agency but is not subject to operational control by that agency.
FMA sec 17
TI 1103
Note 49. Special purpose accounts
The Prize Fund(a)
The purpose of the account is to hold funds from donations and bequests in trust for the
purpose of awarding prizes to schools and colleges in the information technology field.
2015
$000
390
(305)
85
Balance at start of period
Receipts
Payments
Balance at end of period
2014
$000
560
135
(695)
-
The Industry Fund(b)
The purpose of the account is to hold funds appropriated by Parliament for the
development of initiatives improving the competitiveness of the Western Australian
technology industry.
2015
$000
100
(50)
50
Balance at start of period
Receipts
Payments
Balance at end of period
TI 1103(15)(ii)-(iii)
(a)
Established under section 16(1)(c) of FMA.
(b)
Established under section 16(1)(d) of FMA.
2014
$000
-
Commentary:
Departments are required to provide cash-based reporting for any special purpose
accounts established under section 16(1)(b), (c) or (d) of the Act. The relevant disclosure
requirements are:





a statement as to the purpose of the special purpose account;
the balance of the account at the beginning of the financial year;
total receipts;
total payments; and
the balance of the account at the end of the financial year.
The above information can be presented in a table format.
30.06.2015
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Department - 30 June 2015
Reference
Note 50. Supplementary financial information
FMA sec 48
TI 952(6)(i)
FMR reg 7
TI 807
(a) Write-offs
During the financial year, nil (2014: $370,000) was written off the Department’s asset
register under the authority of:
2015
$000
-
The accountable authority
The Minister
Executive Council
2014
$000
10
105
255
370
Commentary:
Disclose details of any other write-offs during the financial year, such as: bad debts and,
revenue and debts due to the State, public and other property written off during the
financial year.
FMA sec 49
TI 952(6)(ii)
TI 803
(b) Losses through theft, defaults and other causes
Losses of public money and public and other property through
theft or default
Amounts recovered
TI 952(6)(iii)
2015
$000
2014
$000
-
-
2015
$000
-
2014
$000
-
(c) Gifts of public property
Gifts of public property provided by the Department
30.06.2015
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Department - 30 June 2015
Reference
AASB 1050.7
Note 51. Disclosure of administered income and expenses by service
Information Technology
Training and Assistance
Competition Policy
General – Not Attributed
Total
2015
$000
2014
$000
2015
$000
2014
$000
2015
$000
2014
$000
2015
$000
2014
$000
2015
$000
2014
$000
INCOME FROM ADMINISTERED
ITEMS
Income
For transfer:
Regulatory fees and other charges
Other revenue
Total administered income
4,586
480
5,066
3,823
437
4,240
154
348
502
130
357
487
115
262
377
97
286
383
50
50
-
4,855
1,140
5,995
4,050
1,080
5,130
Expenses
Supplies and services
Grants and subsidies
Transfer payments(a)
Total administered expenses
248
2,207
1,505
3,960
237
1,546
250
2,033
194
1,269
1,463
179
901
1,080
118
94
212
104
83
187
-
-
560
3,570
1,505
5,635
520
2,530
250
3,300
(a)
Transfer payments represent the transfer of non-retainable regulatory fees to the Consolidated Account.
Commentary:
When an administering agency retains the capital appropriation and administers the funds on behalf of central government, i.e. the appropriation is not transferred to
an agency (controlled agency), the agency administering the capital appropriations should disclose the administered item in the notes as administered revenue
called ‘non-repayable capital appropriation’.
AASB 1050.7 requires the disclosure of each major class of administered income and administered expenses that are reliably attributable to each of the agency’s
activities and those not attributable to activities. Where an agency is unable to reliably attribute administered income and administered expenses to the agency’s
activities after making every reasonable effort to do so, this fact should be disclosed together with a brief explanation.
In respect of administered transfer payments to eligible beneficiaries, AASB 1050.22 requires the details of the broad categories of recipients and the amounts
transferred to those recipients to be disclosed.
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Reference
AASB 1055
TI 945
Note 52. Explanatory Statement for Administered Items
INCOME FROM ADMINISTERED ITEMS
INCOME
For transfer:
Regulatory fees and other charges
Commonwealth grants and contributions
Other Revenue
[Other items as required]
Total Administered Income
EXPENSES
Supplies and services
Grants and subsidies
Transfer Payments
[Other items as required]
Total Administered Expenses
Variance
Note
Estimate
2015
$000
Actual
2015
$000
Actual
2014
$000
Variance
between
estimate and
actual
$000
A
4,750
1,179
5,929
4,855
1,140
5,995
4,050
1,080
5,130
105
(39)
66
805
60
865
539
4,125
1,460
6,124
560
3,570
1,505
5,635
520
2,530
250
3,300
21
(555)
45
(489)
40
1,040
1,255
2,335
(195)
360
1,830
555
(1,470)
1, B
C
NET INCOME FROM ADMINISTERED ITEMS
30.06.2015
Variance
between actual
results for 2015
and 2014
$000
Page 95 of 102
Model Annual Report
Department - 30 June 2015
Reference
AASB 1055
Major Estimate and Actual Variance Narratives for Administered Items
TI 945
1) Grants and subsidies underspent by $0.6 million (or 13.5%) primarily due to delays in establishing
a governance framework for administering grants and soliciting community bids for assistance.
Major Actual (2015) and Comparative (2014) Variance Narratives for
Administered Items
A) Regulatory fees and other charges increased by $0.8 million (20%) due to a licensing fee
introduced by government in the first quarter of the 2014-15 financial year for users to access
information systems maintained by the Department.
B) Grants and subsidies increased by $1.0 million (41%) owing to new grant programs targeting
Information Technology programs (65% of increase) and Training & Assisting seniors to build
computing literacy skills (35% of increase).
C) Transfer payments increased by $1.3 million (502%) owing to increased non-retainable regulatory
fees legally required to be remitted to the Consolidated Account.
TI 945(3)(ii)
Commentary:
Narratives are required for major variances between actuals versus comparatives, and,
actuals versus estimates (original budget) and include commentary on:

variances greater than 10% or $10 million;

where qualitative evidence indicates omission of narrative information could
potentially mislead readers of financial statements;

where authorisation to expend in advance of appropriation was approved in
accordance with section 27 of the Act; or,

where written laws require narrative disclosure.
Explanatory variance narratives are required to disclose details of, and the reasons for, all
major variances in the elements comprising the total. This includes variances that offset
each other.
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Reference
AASB 1050.7
Note 53. Administered assets and liabilities
2015
$000
2014
$000
Current Assets
Cash and cash equivalents
Receivables
Other items as required
Total Administered Current Assets
1,850
430
2,280
1,490
320
1,810
Non-Current Assets
Property, Plant and equipment
Other items as required
Total Administered Non-Current Assets
TOTAL ADMINISTERED ASSETS
280
280
2,560
260
260
2,070
Current Liabilities
Payables
Other items as required
Total Administered Current Liabilities
1,200
1,200
950
950
Non-Current Liabilities
Other items as required
Total Administered Non-Current Liabilities
TOTAL ADMINISTERED LIABILITIES
1,200
950
Commentary:
Disclose any administered contingent assets and/or liabilities here.
Additional explanatory information for material and/or unusual items should be included
here.
In the rare circumstance that an administering agency receives a repayable administered
capital appropriation or an administered loan (e.g. an administered Treasurer’s Advance),
these administered items should be classified as administered borrowings here.
30.06.2015
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Department - 30 June 2015
Reference
TI 903(11)
Additional Key Performance Indicator Information
Commentary:
TI 903(8) requires agencies to include a discussion of actual results against budget
targets for both financial and non-financial indicators in the Agency Performance section
of the annual report. See Note 41 ‘Explanatory Statement’.
In addition to the summary information contained in the Agency Performance section,
agencies may wish to disclose further details including long term trends, graphs and
supporting explanatory notes, as part of this section.
FMA sec 64(1)(b)
As the key performance indicators are audited, the Auditor General’s opinion is usually
inserted into this section.
Certification of Key Performance Indicators
TI 905
I hereby certify that the key performance indicators are based on proper records, are
relevant and appropriate for assisting users to assess the Model Department’s
performance, and fairly represent the performance of the Model Department for the
financial year ended 30 June 2015.
(Signature)
B. King
Accountable Authority
1 August 2015
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Reference
Detailed Information in Support of Key Performance Indicators
Agency Level Government Desired Outcome: Sustainability of the provision of
information technology.
Key Effectiveness Indicator
The proportion (%) of government
agencies using sustainable
information technology plans
2011-12
%
2012-13
%
2013-14
%
2014-15
%
82
83
85
86
2011-12
$
2012-13
$
2013-14
$
2014-15
$
24,000
6,032
23,500
6,000
22,700
6,000
21,950
5,957
Service 1: Information Technology
Key Efficiency Indicators
Cost per sustainable IT plan
Cost per hour of service delivered
Commentary:
An example of longer term trend data is shown above. This is also an appropriate place
to provide graphs and charts.
Insert a brief description of the services provided and a statement of how each service
contributes to the identified agency level government desired outcome.
Key Performance Indicators are to be disclosed in the annual report in accordance with
TI 904.
In addition to the information disclosed on outcomes and services in the report on
operations, all accountable authorities are required to disclose:

the relationship between government goals, agency level government desired
outcomes and services;


key performance indicators of effectiveness; and
key performance indicators of efficiency and cost effectiveness (if applicable).
Key effectiveness indicators provide information on the extent to which agency level
government desired outcomes have been achieved through the funding and production
of agreed services.
Agencies are encouraged to supplement their reporting of effectiveness with narrative.
This narrative may include comment on the projected timing of outcomes to be achieved
in the long term. It is also appropriate for agencies to identify and discuss influences on
achievement of outcomes other than their own services. These influences may include
services provided by other agencies, or factors such as social or demographic trends.
Key efficiency indicators generally relate services to the level of resource inputs required
to deliver them. In some cases ‘per unit cost’ information provided in the budget process
may fulfil the key performance indicator reporting requirement. In other cases cost per
unit information may need to be aggregated, or productivity indicators used.
Key cost effectiveness indicators are a type of key effectiveness indicator. They relate
outcomes directly to inputs. In addition to providing key cost effectiveness indicators
where there are no suitable key efficiency indicators, agencies are encouraged to also
report cost effectiveness indicators where doing so adds value to reporting information.
Further information on, and discussion of, agency level government desired outcomes,
services and key performance indicators are available in the Treasury publication
Outcome Based Management: Guidelines for Use in the Western Australian Public
Sector.
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Model Annual Report
Department - 30 June 2015
Reference
TI 903(12)
Ministerial Directions
No Ministerial directives were received during the financial year.
Commentary:
Disclose any Ministerial directives relevant to the setting of desired outcomes or
operational objectives, the achievement of desired outcomes or operational objectives,
investment activities, and financing activities.
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Department - 30 June 2015
Reference
TI 903(13)
Other Financial Disclosures
Pricing policies of services provided
The Department charges for goods and services rendered on a full or partial cost
recovery basis. These fees and charges were determined in accordance with Costing
and Pricing Government Services: Guidelines for Use by Agencies in the Western
Australian Public Sector published by Treasury.
The current list of fees and charges were published in the Gazette on 31 December 2014
and introduced/payable from 7 January 2015. Details are available on the Department’s
website at www.department.wa.gov.au.
Capital Works
Capital project incomplete
The construction of a new building to accommodate the Department’s increasing demand
for additional seminars and training sessions will be completed by January 2016. The
building will also be used as a display centre for new computer equipment, which will be
open to the public for viewing. The estimated total cost of the project is $20,000,000 and
the estimated remaining cost to complete the project at 30 June 2015 is $13,000,000.
Capital projects completed
No capital projects were completed during 2014-15.
Employment and Industrial Relations
Staff Profile
Full-time permanent
Full-time contract
Part-time measured on a FTE basis
On secondment
2015
260
150
10
3
423
2014
255
140
8
2
405
Staff Development
The Department has a commitment to the development of its employees. Our strategies
are to build a highly skilled, professional and fair workforce with the ability to adapt to
changing business technology and the environment.
During the financial year, our employees received training in excess of 3,000 hours of inhouse and external training. As the result of our commitment to staff training and
development, we are recognised as the industry leader in the information technology
area in the public sector.
Workers Compensation
Five compensation claims of a minor nature were recorded during the financial year. This
compares with seven compensation claims of a minor nature recorded in 2014-15.
Commentary:
The above disclosure is an example and agencies should consider their own
circumstances in addressing the requirement.
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Department - 30 June 2015
Reference
TI 903(14)
Governance Disclosures
Contracts with Senior Officers
At the date of reporting, no senior officers, or firms of which senior officers are members,
or entities in which senior officers have substantial interests, had any interests in existing
or proposed contracts with the Model Department other than normal contracts of
employment of service.
Commentary:
The above disclosure is an example therefore agencies should consider their own
circumstances in addressing the requirements of TI 903(14).
TI 903(15)
Other Legal Requirements
Annual Estimates
FMA sec 40
TI 953
Commentary:
TI 816 requires agencies to prepare and submit for Ministerial approval annual estimates
for any special purpose accounts that are not reflected in the budget statements.
The estimates are to be prepared and submitted to the Minister at such times as
determined by the Treasurer, or no later than three months before the commencement of
the next financial year.
The approved estimates for special purpose accounts should be published in the annual
report of the preceding financial year.
A comprehensive list of Other Legal Requirements is available from the Public Sector
Commission’s Annual Reporting Framework:
http://www.publicsector.wa.gov.au/Pages/A-ZPublications.aspx
TI 903(16)
Government Policy Requirements
Commentary:
A comprehensive list of Government Policy Requirements is available from the Public
Sector Commission’s Annual Reporting Framework:
http://www.publicsector.wa.gov.au/Pages/A-ZPublications.aspx
30.06.2015
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