costs that they are intended to compensate. 2. Statement of significant accounting policies (vi) Contributions (a) Revenue Recognition Income arising from non-reciprocal contributions is recognised when: Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as The Authority obtains control of the contribution or the right to receive • follows: the contribution; It is probable that the economic benefits will flow to the Authority; and • (i) Rendering of services The amount can be measured reliably. • Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting (b) Finance Income and Finance Costs date. Where a contract outcome cannot be measured reliably, revenue Finance income and finance costs include: is recognised only to the extent of the costs incurred that are likely to be Interest Income; • recoverable. Interest Expense; • Unwinding of discount on provisions; (ii) Interest revenue • Finance charges payable under finance leases; Interest revenue is recognised using the effective interest method. (See • note 2(b)). Borrowing costs. • All finance income and finance costs are recognised using the effective (iii) Rental income interest method. Rental income is recognised as revenue on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral Borrowing costs are recognised as expenses in the period in which they part of total rental income, over the term of the lease. are incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset in which case they are (iv) Gains capitalised as part of the cost of the asset, in accordance with AASB 123 Gains may be realised or unrealised and are usually recognised on a net Borrowing Costs. basis. These include gains arising on the disposal of non-current assets. In determining the amount of borrowing costs to be capitalised during the financial year, investment revenue earned directly relating to the (v) Government grants/subsidies borrowings is deducted from the borrowing costs incurred. Grants from the Government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Authority will comply with all attached conditions. Government grants relating to costs are deferred and recognised in the income statement over the period necessary to match them with the
2. Statement of significant accounting policies (a) Revenue Recognition Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows: (i) Rendering of services Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting date. Where a contract outcome cannot be measured reliably, revenue is recognised only to the extent of the costs incurred that are likely to be recoverable. (ii) Interest revenue Interest revenue is recognised using the effective interest method. (See note 2(b)). (iii) Rental income Rental income is recognised as revenue on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral part of total rental income, over the term of the lease. (iv) Gains Gains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non-current assets. (v) Government grants/subsidies Grants from the Government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Authority will comply with all attached conditions. Government grants relating to costs are deferred and recognised in the income statement over the period necessary to match them with the costs that they are intended to compensate. (vi) Contributions Income arising from non-reciprocal contributions is recognised when: • The Authority obtains control of the contribution or the right to receive the contribution; • It is probable that the economic benefits will flow to the Authority; and • The amount can be measured reliably. (b) Finance Income and Finance Costs Finance income and finance costs include: • Interest Income; • Interest Expense; • Unwinding of discount on provisions; • Finance charges payable under finance leases; • Borrowing costs. All finance income and finance costs are recognised using the effective interest method. Borrowing costs are recognised as expenses in the period in which they are incurred except where they are directly attributable to the acquisition, construction or production of a qualifying asset in which case they are capitalised as part of the cost of the asset, in accordance with AASB 123 Borrowing Costs. In determining the amount of borrowing costs to be capitalised during the financial year, investment revenue earned directly relating to the borrowings is deducted from the borrowing costs incurred.