Roes of scallops

Statement of financial performance

Australian National Audit Office report

Financial statements

Statement of Financial Performance

Financial Results

AFMA reported a deficit of $0.900 million for the 2017–18 financial year, well within the budgeted operating loss of $1.8 million. This includes some $0.020 million in decrements to Other Comprehensive Income relating to changes in asset revaluation surplus as at 30 June 2018. AFMA’s total departmental expenditure was $39.1 million against budget expenditure of $38.9 million or $0.200 million higher than budget.

Employee expenditure was some $0.233 million lower than budget, mainly due to lower Average Staffing Levels across the agency.

Supplier expenditure was $1.3 million higher than budget. The key driver for this variance being higher surveillance costs, mainly due to higher consultancy and contractor costs relating to the development and commencement of the Information and Communications Technology Strategy along with preparatory work involved with the Canberra office relocation. There were also higher costs associated with the transition to the new vessel monitoring system provider.

Depreciation and amortisation expenditure was $0.8 million lower than budget. The value and useful life of AFMA’s assets were reassessed as part of the 2016–17 financial statement process and this has lowered this year’s depreciation/amortisation expenditure significantly.

AFMA’s administered expenditure relating to the caretaking and disposal of illegal foreign fishing vessels was $1.1 million, $4.3 million lower than budget. This is also $2.130 million lower than the previous year.

 

 

 

Australian Fisheries Management Authority Financial Statements for the period ended 30 June 2018

Independent Auditors Report Independent Auditors Report

 

 

 

Financial statements

Australian Fisheries Management Authority

for the period ended 30 June 2018

Statement by the Chief Executive Officer and the Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2018 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsections 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Fisheries Management Authority (AFMA) will be able to pay its debts as and when they fall due.

Jenny Sutherland signature

Jenny Sutherland

Acting Chief Finance Officer

10 September 2018

Dr James Findlay signature

Dr James Findlay

Chief Executive Officer

10 September 2018

Australian Fisheries Management Authority

Statement of Comprehensive Income

for the period ended 30 June 2018

              2018
              Original
      2018   2017   Budget
  Notes   $'000   $'000   $'000
NET COST OF SERVICES              
Expenses              
Employee benefits 5.1A   20,630   20,375   20,863
Supplier 1.1A   17,548   16,766   16,202
Depreciation and amortisation 2.2A   991   1,651   1,808
Write-down and impairment of assets 1.1B   10   162   -
Total expenses     39,179   38,954   38,873
               
Own-Source Income              
Own-source revenue              
Sale of goods and rendering of services 1.2A   3,104   2,616   2,008
Rental income 1.2B   696   724   725
Interest 1.2C   38   -   -
Total own-source revenue     3,838   3,340   2,733
               
Gains              
Resources received free of charge     43   43   45
Total gains     43   43   45
Total own-source income     3,881   3,383   2,778
Net (cost of) services     (35,298)   (35,571)   (36,095)
               
Revenue from Government 1.3A   34,398   34,537   34,287
Deficit attributable to the Australian Government     (900)   (1,034)   (1,808)
               
OTHER COMPREHENSIVE INCOME              
Items not subject to subsequent reclassification to net cost of services              
Changes in asset revaluation surplus     (20)   (402)   -
Total other comprehensive (loss)     (20)   (402)   -
Total Comprehensive (loss)     (920)   (1,436)   (1,808)

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

The financial statements provide a comparison of the original budget as presented in the 2017-18 Portfolio Budget Statements (PBS) to the 2017-18 final outcome as presented in accordance with Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements for the Authority. The Budget is not audited.

Variances are considered to be 'major' based on the following criteria:

  • the variance between budget and actual is greater than 10%; and
  • the variance between budget and actual is greater than 2% of total expenses; or
  • the variance between budget and actual is below this threshold but is considered important for the reader's understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of the Authority.

In some instances, a budget has not been provided for in the PBS, for example non-cash items such as asset revaluations, foreign exchange and sale of asset adjustments. Unless the variance is considered 'major' no explanation has been provided.

Suppliers were $1.3 million higher (8.3% higher) than the Original Budget. The key drivers included:

  • higher consultancy and contractor costs ($1.1 million) primarily related to the development and commencement of the Information and Communications Technology (ICT) Strategy along with preparatory work involved in the Canberra office relocation;
  • higher costs associated with the transition to the new vessel monitoring system (VMS) through an approach to market ($0.7 million); and
  • offset by lower travel expenditure ($0.3 million) and occupancy expenditure ($0.2 million).

Depreciation and amortisation was $0.8 million lower (45.2% lower). The value and useful life of AFMA's assets were reassessed as part of the 2016-17 financial statement process and this has lowered this year's depreciation/amortisation expenditure significantly.

Own-source revenue was $1.1 million higher (40.4% higher) than the Original Budget. The increase was mainly the result of additional capacity building activities in the Pacific ($0.4 million), higher fee-for-service revenue for observers ($0.4 million) and for vessel monitoring services ($0.3 million).

Australian Fisheries Management Authority

Statement of Financial Position

as at 30 June 2018

               
              2018
              Original
      2018   2017   Budget
  Notes   $'000   $'000   $'000
ASSETS              
Financial Assets              
Cash and cash equivalents 2.1A   14,238   14,036   274
Trade and other receivables 2.1B   1,233   1,026   14,891
Total financial assets     15,471   15,062   15,165
               
Non-Financial Assets              
Land and buildings 2.2A   2,175   2,492   2,399
Property, plant and equipment 2.2A   578   641   769
Intangibles 2.2A   389   552   985
Other non-financial assets 2.2B   664   1,030   262
Total non-financial assets     3,806   4,715   4,415
Total assets     19,277   19,777   19,580
               
LIABILITIES              
Payables              
Suppliers 2.3A   2   2   434
Other payables 2.3B   3,581   3,544   3,739
Total payables/td>     3,583   3,546   4,173
               
Provisions              
Employee provisions 5.1B   5,082   5,164   5,293
Total provisions     5,082   5,164   5,293
Total liabilities     8,665   8,710   9,466
Net assets     10,612   11,067   10,114
               
EQUITY              
Contributed equity     12,199   11,734   12,193
Reserves     4,202   4,222   4,626
(Accumulated deficit)     (5,789)   (4,889)   (6,705)
Total equity     10,612   11,067   10,114
               

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Non-financial assets were $0.6 million lower (13.8% lower) than the Original Budget.

  • the value and useful life of AFMA's assets were reassessed as part of the 2016-17 financial statement process and this has lowered the value of land and buildings along with property, plant and equipment assets ($0.4 million) compared to that which was budgeted;
  • intangible assets were also lower than budget ($0.6 million) with asset replacement being delayed to align with the Canberra office relocation; and
  • this was offset by other non-financial assets being higher ($0.4 million) due to higher accrued revenue for observers and vessel monitoring services.

Payables were $0.6 million lower (14.1% lower) than the Original Budget mainly due to lower accrued expenses and unearned revenues than estimated at Budget.

  • Employee Provisions were $0.2 million lower (4.0% lower) than the Original Budget mainly as a result of:

     

    • slightly lower average staffing numbers used to estimate leave provisions; and
    • an increase in the bond rate used in the present value calculation.

    Australian Fisheries Management Authority

    Statement of Changes in Equity

    for the period ended 30 June 2018

                  2018
                  Original
          2018   2017   Budget
          $'000   $'000   $'000
    CONTRIBUTED EQUITY              
    Opening balance              
    Balance carried forward from previous period     11,734   11,122   11,735
    Transactions with owners              
    Departmental capital budget     465   462   458
    Equity injection     -   150   -
    Total transactions with owners     465   612   458
    Closing balance as at 30 June     12,199   11,734   12,193
                   
    RETAINED EARNINGS              
    Opening balance              
    Balance carried forward from previous period     (4,889)   (3,855)   (4,897)
    Adjusted opening balance     (4,889)   (3,855)   (4,897)
                   
    Comprehensive income              
    Deficit for the period     (900)   (1,034)   (1,808)
    Total comprehensive income     (900)   (1,034)   (1,808)
    Transfers between equity components     -   -   -
    Closing balance as at 30 June     (5,789)   (4,889)   (6,705)
                   
    ASSET REVALUATION RESERVE              
    Opening balance              
    Balance carried forward from previous period     4,222   4,624   4,626
    Adjusted opening balance     4,222   4,624   4,626
                   
    Comprehensive income              
    Other comprehensive income     (20)   (402)   -
    Total comprehensive income     (20)   (402)   -
    Closing balance as at 30 June     4,202   4,222   4,626
                   
    TOTAL EQUITY              
    Opening balance              
    Balance carried forward from previous period     11,067   11,891   11,464
    Adjusted opening balance     11,067   11,891   11,464
                   
    Comprehensive income              
    Surplus/(Deficit) for the period     (900)   (1,034)   (1,808)
    Other comprehensive income     (20)   (402)   -
    Total comprehensive income     (920)   (1,436)   (1,808)
    Transactions with owners              
    Departmental capital budget     465   462   458
    Equity injection     -   150   -
    Total transactions with owners     465   612   458
    Closing balance as at 30 June     10,612   11,067   10,114

    The above statement should be read in conjunction with the accompanying notes.

    Accounting Policy

    Equity injections

    Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

    Budget Variances Commentary

    The closing balance of equity is $0.5 million higher (4.9% higher) than the Original Budget. The variance comprises a lower asset revaluation reserve balance ($0.4 million) offset by a lower actual operating loss for the year ($0.9 million) compared to budget.

    Australian Fisheries Management Authority

    Cash Flow Statement

    for the period ending 30 June 2018

                  2018
                  Original
          2018   2017   Budget
      Notes   $'000   $'000   $'000
                   
    OPERATING ACTIVITIES              
    Cash received              
    Appropriations     34,350   34,244   35,313
    Sales of goods and rendering of services     3,382   4,114   3,104
    Net GST received     1,474   1,813   350
                   
    Total cash received     39,206   40,171   38,767
                   
    Cash used              
    Employees     20,707   20,398   21,460
    Suppliers     18,300   19,893   16,916
                   
    Net GST paid     -   -   -
    Total cash used     39,007   40,291   38,376
    Net cash from/(used by) operating activities     199   (120)   391
                   
    INVESTING ACTIVITIES              
    Cash received              
    Proceeds from sales of property, plant and equipment     -   -   -
    Total cash received     -   -   -
                   
    Cash used              
    Purchase of property, plant and equipment     462   319   840
    Total cash used     462   319   840
    Net cash from/(used by) investing activities     (462)   (319)   (840)
                   
    FINANCING ACTIVITIES              
    Cash received              
    Contributed equity - departmental capital budget     465   612   449
    Total cash received     465   470   449
    Net cash from/(used by) financing activities     465   612   449
                   
    Net increase in cash held     202   173   -
    Cash and cash equivalents at the beginning of the reporting period     14,036   13,863   274
    Cash and cash equivalents at the end of the reporting period 2.1A   14,238   14,036   274

    The above statement should be read in conjunction with the accompanying notes.

    Accounting Policy

    Goods and Services Tax

    In 2017-18 AFMA grossed up GST in the Cash Flow Statement as required under Interpretation 1031 paragraph 11 and AASB 7. Comparatives have been revised accordingly.

    Budget Variances Commentary

    Investing Activities

    Total cash used was $0.4 million lower as a result of lower purchases of property, plant and equipment than estimated in the Original Budget. Purchases of such assets have been delayed to align with the Canberra office relocation planned for 2018-19.

    Australian Fisheries Management Authority

    Administered Schedule of Comprehensive Income

    for the period ended 30 June 2018

                  2018
                  Original
          2018   2017   Budget
      Notes   $'000   $'000   $'000
    NET COST OF SERVICES              
    Expenses              
    Suppliers     1,102   3,232   5,424
    Write-down and impairment of assets     -   196   -
    Total expenses     1,102   3,428   5,424
                   
    Income              
    Revenue              
    Non-taxation revenue              
    Fees and fines     20   491   -
    Application Fees     -   2   -
    Other revenue     16   36   -
    Total non-taxation revenue     36   529   -
    Total revenue     36   529   -
    Total income     36   529   -
    Net cost of services     (1,066)   (2,899)   (5,424)
    (Deficit)     (1,066)   (2,899)   (5,424)
    Total Comprehensive loss     (1,066)   (2,899)   (5,424)
                   

    This schedule should be read in conjunction with the accompanying notes.

    Budget Variances Commentary

    Expenses

    Suppliers expenses were $4.3 million lower (79.7% lower) than the Original Budget. Costs for the caretaking and disposal of illegal foreign fishing vessels were lower due to lower vessel apprehensions than budgeted.

    Australian Fisheries Management Authority

    Administered Schedule of Assets and Liabilities

    as at 30 June 2018

                  2018
                  Original
          2018   2017   Budget
      Notes   $'000   $'000   $'000
                   
    ASSETS              
    Financial assets              
    Trade and other receivables 3.1A   272   247   328
    Total financial assets     272   247   328
                   
    Non-financial assets              
    Other non-financial assets 3.2A   23   157   -
    Total non-financial assets     23   157   -
                   
    Total assets administered on behalf of Government     295   404   328
                   
    LIABILITIES              
    Payables              
    Other 3.3A   57   168   348
    Total payables     57   168   348
                   
    Total liabilities administered on behalf of Government     57   168   348
                   
    Net assets     238   236   (20)
                   

    This schedule should be read in conjunction with the accompanying notes.

    Budget Variances Commentary

    Payables were $0.3 million lower due to lower accrued expenditure at year-end resulting from lower vessel apprehensions than budgeted.

    Australian Fisheries Management Authority

    Administered Reconciliation Schedule

    for the period ended 30 June 2018

      2018   2017
      $'000   $'000
           
    Opening assets less liabilities as at 1 July 236   247
           
    Net (cost of)/contribution by services      
    Income 36   529
    Expenses (1,102)   (3,428)
           
    Transfers (to)/from the Australian Government:      
    Appropriation transfers from Official Public Account      
    Annual appropriations 1,094   3,242
    Appropriation transfers to Official Public Account      
    Transfers to OPA (26)   (354)
    Closing assets less liabilities as at 30 June 238   236
           
    This schedule should be read in conjunction with the accompanying notes.      

    Australian Fisheries Management Authority

    Administered Cash Flow Statement

    for the period ended 30 June 2018

                  2018
                  Original
          2018   2017   Budget
      Notes   $'000   $'000   $'000
                   
    OPERATING ACTIVITIES              
    Cash received              
    Fees     16   38   -
    Fines     6   321   -
    Net GST received     12   13   -
    Total cash received     34   371   -
                   
    Cash used              
    Suppliers     1,079   3,259   5,424
    Total cash used     1,079   3,259   5,424
    Net cash flows from/(used by) operating activities     (1,045)   (2,888)   (5,424)
                   
    Cash from Official Public Account              
    Appropriations     1,071   3,242   5,424
          1,071   3,242   5,424
    Cash to Official Public Account for:              
    Appropriations     (26)   (354)   -
    Cash and cash equivalents at the end of the reporting period     -   -   -
                   

    This schedule should be read in conjunction with the accompanying notes.

    Budget Variances Commentary

    Cash used by operating activities are lower than budget as a result of lower supplier expenditure as explained under the Administered Statement of Comprehensive Income.

    Australian Fisheries Management Authority

    Notes to and forming part of the financial statements

    for the period ended 30 June 2018

       

    Overview

     
       
    Financial performance  
    Note 1.1: Expenses  
    Note 1.2: Own source income and other revenue  
    Note 1.3: Revenue from Government  
    Accounting policies - financial performance  
       
    Financial position  
    Note 2.1: Financial assets  
    Note 2.2: Non-financial assets  
    Note 2.3: Payables  
    Accounting policies - financial position  
       
    Assets and liabilities administered on behalf of the Government  
    Note 3.1: Administered - financial assets  
    Note 3.2: Administered - non-financial assets  
    Note 3.3: Administered - liabilities  
       
    Funding  
    Note 4.1: Appropriations  
    Note 4.2: Special accounts  
    Note 4.3: Regulatory charging summary  
    Note 4.4: Net cash appropriation arrangements  
       
    People and relationships  
    Note 5.1: Employees  
    Accounting policies - people and relationships  
    Note 5.2: Key management personnel remuneration  
    Note 5.3: Related party disclosures  
       
    Managing uncertainty  
    Note 6.1: Contingent liabilities and contingent assets  
    Note 6.2: Financial instruments  
    Note 6.3: Administered - financial instruments  
    Accounting policies - financial instruments  

    Overview

    Objectives of AFMA

    The Australian Fisheries Management Authority (AFMA) is an Australian Government controlled entity. It is a not-for-profit entity. The objectives of AFMA are to pursue the implementation of efficient and cost effective fisheries management consistent with the principles of ecologically sustainable development and maximising the net economic returns for the Australian community from the management of Australian fisheries for which the Commonwealth has legislative responsibilities.

     

    AFMA has a single outcome: Ecologically sustainable and economically efficient Commonwealth fisheries, through understanding and monitoring Australia's marine living resources and regulating and monitoring commercial fishing, including domestic licensing and deterrence of illegal foreign fishing. All of the financial information contained in these financial statements were incurred in pursuit of this outcome. The net cost of outcome delivery for 2017-18 was $36,364,000 (2016-17 was $38,470,000).

    The continued existence of AFMA in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament for AFMA's administration and programs.

    The activities contributing toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by AFMA in its own right. Administered activities involve the management or oversight by AFMA, on behalf of the Government, of items controlled or incurred by the Government.

    Administered activities for the entity involve the caretaking and disposal of illegal foreign fishing vessels.

    Basis of Preparation of the Financial Statements

    The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

    The Financial Statements have been prepared in accordance with:

    (a) Financial Reporting Rule (FRR); and
    (b) Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

    The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

    The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

    Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

    For the preparation of the 2017-18 financial statements, accounting policies are consistent with the previous year unless otherwise stated.

    Future Accounting Standards

    The following new, amending standards or interpretations were issued by the AASB prior to the sign-off date. All other new standards, revised standards, interpretations or amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have material effect, and are not expected to have a material effect on AFMA's financial statements.

    AFMA expects to apply AASB 16 Leases from 1 July 2019. This standard will require the net present value of payments under most operating leases to be recognised as assets and liabilities.

    Taxation

    AFMA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

    Revenues, expenses and assets and liabilities are recognised net of GST except:

    (a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
    (b) for receivables and payables.

    Reporting of Administered Activities

    Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the schedules of administered items and related notes.

    Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

    Administered Cash Transfers to and from the Official Public Account

    Revenue collected by AFMA for use by the Government rather than AFMA is administered revenue. Collections are transferred to the Official Public Account maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by AFMA on behalf of the Government and reported as such in the statement of cash flows in the schedule of administered items and in the administered reconciliation schedule.

    Revenue

    All administered revenues are revenues relating to ordinary activities performed by AFMA on behalf of the Australian Government. As such, administered appropriations are not revenues of AFMA, but AFMA oversees the distribution or expenditure of the funds as directed.

    Events After the Reporting Period

    There have been no significant subsequent events after the reporting period that impact on the financial statements for the year ended 30 June 2018.

    Australian Fisheries Management Authority

    Notes to and forming part of the financial statements

    for the period ended 30 June 2018

    Financial peformance

    This section analyses AFMA's financial performance for the year ended 30 June 2018. Employee related information is disclosed in the People and Relationships Section.

    Note 1.1 Expenses        
             
      2018   2017  
      $'000   $'000  
    Note 1.1A: Suppliers        
    Goods and services        
    Research 3,686   3,893  
    Surveillance and compliance 1,281   712  
    Consultants and contractors 4,779   4,626  
    Travel and meetings 1,949   1,827  
    Information technology and communications 1,388   1,097  
    Training and development 362   483  
    Building repairs and outgoings 361   438  
    General administrative 1,202   1,179  
    Total goods and services 15,008   14,255  
             
             
    Goods supplied 199   239  
    Services rendered 14,809   14,016  
    Total goods and services supplied or rendered 15,008      
             
    Other suppliers        
    Operating lease rentals in connection with        
    External parties        
    Minimum lease payments 2,175   2,152  
    Workers compensation expenses 365   359  
    Total other suppliers 2,540   2,511  
    Total suppliers 17,548   16,766  
             
    Leasing commitments        
    AFMA leases office accommodation in Canberra, Darwin and Lakes Entrance. The initial lease term in Canberra is still current until 31 December 2018. The Darwin lease ended at 30 June 2018 and AFMA is currently in negotiations for extending this arrangement.        
    Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:        
             
    Within 1 year 1,010   416  
    Between 1 to 5 years 70   3,117  
    Total operating lease commitments 1,080   3,533  
             
    Note 1.1B: Write-Down and Impairment of Assets        
    Asset write-downs and impairments from:        
    Bad and doubtful debt expense -   64  
    Write-down and Impairment of Assets (9)   71  
    Other 19   27  
    Total write-down and impairment of assets 10   162  
             
    Note 1.2 Own Source Income and Gains        
      2018   2017  
      $'000   $'000  
    Note 1.2A: Sale of Goods and Rendering of Services        
    Rendering of services 3,104   2,616  
    Total sale of goods and rendering of services 3,104   2,616  
             
    Note 1.2B: Rental Income        
    Operating lease:        
    Sublease - Canberra office 536   465  
    Sublease - Thursday Island office 75   140  
    Employee car parking 85   119  
    Total rental income 696   724  
             
    Leasing commitments receivable        
    AFMA in its capacity as a lessor sub-leases office accommodation on Thursday Island and in Canberra. All commitments are GST exclusive.        
             
    Commitments for minimum lease receipts in relation to non-cancellable operating leases are receivable as follows:        
             
    Within 1 year 384   485  
    Between 1 to 5 years 589   248  
    Total sub-lease commitments receivable 973   733  
             
    Note 1.2C: Interest        
    Interest 38   -  
    Total interest 38   -  
             
    Note 1.3 Revenue from Government        
             
      2018   2017  
      $'000   $'000  
    Note 1.3A: Revenue from Government        
    Appropriations:        
    Departmental appropriation 20,049   20,310  
    Special Appropriation (Levies and licensing charges)1 14,349   14,227  
    Total revenue from Government 34,398   34,537  
             
    1 Special appropriations comprise amounts deposited to Consolidated Revenue for AFMA's levies and licensing charges that were credited to the AFMA Special Account in accordance with s94C of the Fisheries Administration Act 1991.        
             
             

    Accounting Policies - Departmental Financial Performance

    Revenue

    Revenue from the sale of goods is recognised when:

    (a) the risks and rewards of ownership have been transferred to the buyer;
    (b) AFMA retains no managerial involvement or effective control over the goods;
    (c) the revenue and transaction costs incurred can be reliably measured; and
    (d) it is probable that the economic benefits associated with the transaction will flow to AFMA.

    Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
    (a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
    (b) the probable economic benefits associated with the transaction will flow to AFMA.

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

    Revenue from Government

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

    Other Revenue

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

    Resources received free of charge are recorded as either revenue or gains depending on their nature.

    Leases

    A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

    The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

    Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

             

    Financial position

    This section analyses AFMA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships Section."        
             
    Note 2.1 Financial assets        
             
      2018   2017  
      $'000   $'000  
    Note 2.1A: Cash and Cash Equivalents        
    Cash in special accounts 13,938   13,618  
    Cash on hand or on deposit 300   418  
    Total cash and cash equivalents 14,238   14,036  
             
    Note 2.1B: Trade and Other Receivables        
    Good and services receivables        
    Goods and Services 404   289  
    Total goods and services receivables 404   289  
             
    Appropriations receivables        
    Departmental Capital Budget 513   465  
    Total appropriations receivables 513   465  
             
    Other receivables        
    GST receivable from the Australian Taxation Office 316   336  
    Total other receivables 316   336  
    Total trade and other receivables (gross) 1,233   1,090  
             
    Less impairment allowance        
    Goods and services -   (64)  
    Total impairment allowance -   (64)  
    Total trade and other receivables (net) 1,233   1,026  
             
    Trade and other receivables (net) expected to be recovered        
    No more than 12 months 1,233   1,026  
    Total trade and other receivables (net) 1,233   1,026  
             
             
    Credit terms for Goods and Services were within 30 days for 2018 (2017: 30 days)        
             
    Reconciliation of the Impairment Allowance: 2018   2017  
      Goods and services   Goods and services  
      $'000   $'000  
    Opening balance 64   -  
    Decrease recognised in net surplus (64)   64  
    Closing balance -   64  
             
             
    Note 2.1C Assets Held in Trust        
    Monetary assets        
    Financial assets held in trust are also disclosed in Note 4.2: Special Accounts in the table titled AFMA Service for Other Entities and Trust Monies.        
      2018   2017  
      $'000   $'000  
    Cash at bank - monetary asset        
    As at 1 July -   36  
    Receipts 255   304  
    Payments (1)   (340)  
    As at 30 June 254   -  
             
    The values above were estimated fair values at the time when acquired.        

    Note 2.2: Non-financial assets

       
                       
    Note 2.2A: Reconciliation of the Opening and Closing Balances of Land and Buildings, Property, Plant and Equipment and Intangibles for 2018                  
      Land Buildings Leasehold Improvements Total land and buildings Property, plant and equipment Computer software internally developed Computer software purchased Total intangibles Total
      $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
    As at 1 July 2017                  
    Gross book value 975 900 629 2,504 652 4,331 1,784 6,115 9,271
    Accumulated depreciation, amortisation and impairment - - (12) (12) (11) (3,861) (1,702) (5,563) (5,586)
    Net book value 1 July 2017 975 900 617 2,492 641 470 82 552 3,685
    Additions:                  
    By purchase - - 16 16 258 62 126 188 462
    Revaluations and impairments recognised in other comprehensive income - - - - (20) - - - (20)
    Depreciation and amortisation expense - (26) (307) (333) (307) (305) (46) (351) (991)
    Disposals - - - - (28) - - - (28)
    Accumulated amortisation of disposed assets - - - - 34 - - - 34
    Net book value 30 June 2018 975 874 326 2,175 578 227 162 389 3,142
                       
    Net book value as of 30 June 2018 represented by:                  
    Gross book value 975 900 645 2,520 862 4,393 1,910 6,303 9,685
    Accumulated depreciation, amortisation and impairment - (26) (319) (345) (284) (4,166) (1,748) (5,914) (6,543)
    Total as at 30 June 2018 975 874 326 2,175 578 227 162 389 3,142
                       
    Note 2.2A: Reconciliation of the Opening and Closing Balances of Land and Buildings, Property, Plant and Equipment and Intangibles for 2017                  
                       
      Land Buildings Leasehold Improvements Total land and buildings Property, plant & equipment Computer software internally developed Computer software purchased Total intangibles Total
      $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
    As at 1 July 2016                  
    Gross book value 1,075 950 3,361 5,386 1,809 4,331 1,707 6,038 13,233
    Accumulated depreciation, amortisation and impairment - (63) (1,753) (1,816) (975) (3,556) (1,395) (4,951) (7,742)
    Net book value 1 July 2016 1,075 887 1,608 3,570 834 775 312 1,087 5,491
    Additions:                  
    By purchase - - - - 256 - 63 63 319
    Reclassification of assets       -       - -
    Revaluations and impairments recognised in other comprehensive income (100) 43 (340) (397) (19) - 14 14 (402)
    Impairments recognised in the operating result - - (12) (12) (7) - (14) (14) (33)
    Depreciation and amortisation expense - (30) (630) (660) (391) (305) (295) (600) (1,651)
    Other movements           - - - -
    Disposals - - - - (78) - - - (78)
    Accumulated amortisation of disposed assets - - (9) (9) 46 - 2 2 39
    Net book value 30 June 2017 975 900 617 2,492 641 470 82 552 3,685
                       
    Net book value as of 30 June 2017 represented by:                  
    Gross book value 975 900 629 2,504 652 4,331 1,784 6,115 9,271
    Accumulated depreciation, amortisation and impairment - - (12) (12) (11) (3,861) (1,702) (5,563) (5,586)
    Total as at 30 June 2017 975 900 617 2,492 641 470 82 552 3,685
                       
                       
             
      2018   2017  
      $'000   $'000  
    Note 2.2B Other Non-Financial Assets        
    Prepayments 235   698  
    Accrued revenue 429   332  
    Total other non-financial assets 664   1,030  
             
    No indicators of impairment were found for other non-financial assets.        
    All other non-financial assets are expected to be recovered within the next 12 months.        
             
    Note 2.3 Payables        
             
      2018   2017  
      $'000   $'000  
    Note 2.3A: Suppliers        
    Trade creditors and accruals 2   2  
    Total supplier payables 2   2  
             
    Settlement is usually made within 30 days.        
             
    Note 2.3B: Other Payables        
    Accrued expenses 2,628   1,892  
    Lease incentives 10   31  
    Operating lease rentals 154   435  
    Wages and salaries 169   164  
    Unearned revenue 620   1,022  
    Total other payables 3,581   3,544  
             
    Total other payables are expected to be settled in:        
    No more than 12 months 3,417   3,099  
    More than 12 months 164   445  
    Total other payables 3,581   3,544  
             
             

    Accounting policies - financial position

    Cash

    Cash is recognised at its nominal amount. Cash and cash equivalents includes:

    (a) cash on hand;

    (b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;

    (c) cash held by outsiders; and

    (d) cash in special accounts.

    Financial Assets

    Please refer to Note 6 Managing Uncertainty for accounting policies for financial assets.

    Receivables

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

    Acquisition of Assets

    Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

    Property, Plant and Equipment

    Asset Recognition Threshold:

    Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

    The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions. AFMA does not have any material make good requirements.

    Revaluations

    Following initial recognition at cost, property, plant and equipment were carried at fair value. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets' fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

    Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

    Any accumulated depreciation as at the revaluation date was eliminated against the gross carrying amount of the asset and the asset was restated to the revalued amount.

    Depreciation

    Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the entity using, in all cases, the straight-line method of depreciation.

    Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

    Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

      2018   2017  
    Buildings on freehold land 40 to 45 years   40 to 45 years  
    Leasehold improvements Lease term   Lease term  
    Plant and Equipment 4 to 13 years   4 to 13 years  
             

    Impairment

    All assets were assessed for impairment at 30 June 2018. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount.

    The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if AFMA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

    Derecognition

    An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

    Intangibles

    AFMA's intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

    Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of AFMA's software assets are 3 to 10 years (2017: 3 to 10 years).

    All software assets were assessed for indications of impairment as at 30 June 2018.

    Fair Value Measurement

    AFMA deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period. No transfers between levels occurred during 2017-18.

    Significant Accounting Judgements and Estimates

    In the process of applying the accounting policies listed in this note, AFMA has made judgements that have the most significant impact on the amounts recorded in the financial statements with respect to the fair value of land and buildings. The fair value of land and buildings has been taken to be the market value of similar properties as determined by an independent valuer. In some instances, entity buildings are purpose-built and may in fact realise more or less in the market.

    No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

    Financial Liabilities

    Please refer to Note 6 Managing Uncertainty for accounting policies for financial liabilities.

    Australian Fisheries Management Authority

    Notes to the schedule of administered items

    for the period ended 30 June 2018

    Assets and liabilities administered on behalf of the Government
    This section analyses assets used to conduct operations and the operating liabilities incurred as a result AFMA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.        
             
             
             
             
    Note 3.1 Financial Assets        
      2018   2017  
      $'000   $'000  
             
    Note 3.1A: Trade and Other Receivables        
    Fees and charges        
    Fees and charges receivable - external parties 511   560  
    Total fees and charges receivable 511   560  
             
    Other receivables        
    GST receivable from Australian Taxation Office 36   25  
    Total other receivables 36   25  
    Total trade and other receivables (gross) 547   585  
             
    Less impairment allowance        
    Fees and charges (275)   (338)  
    Total impairment allowance account (275)   (338)  
    Total trade and other receivables (net) 272   247  
             
    Receivables are expected to be recovered within 12 months.        
             
    Receivables were aged as follows        
    Not overdue 36   213  
    Overdue by:        
    More than 90 days 511   372  
    Total receivables (gross) 547   585  
             
    Impairment allowance aged as follows        
    Overdue by:        
    More than 90 days (275)   (338)  
    Total impairment allowance (275)   (338)  
             
    Credit terms for goods and services were within 30 days (2017: 30 days).        
             
    Reconciliation of the Impairment Allowance 2018   2017  
      Fees and charges   Fees and charges  
      $'000   $'000  
    Opening balance (338)   (430)  
    Amounts written off 63   (104)  
    Movement recognised in net surplus -   196  
    Closing balance (275)   (338)  
             
      2018   2017  
      $'000   $'000  
             
    Note 3.2A: Other Non-Financial Assets        
    Other non-financial assets 23   157  
    Total other non-financial assets 23   157  
             
             
    Note 3.3 Administered - Liabilities        
      2018   2017  
      $'000   $'000  
    Note 3.3A: Suppliers        
    Trade creditors and accruals 23   157  
    GST payable 34   11  
    Total suppliers 57   168  
             
    Suppliers expected to be settled        
    No more than 12 months 57   168  
    Total suppliers 57   168  
             

    Australian Fisheries Management Authority

    Notes to and forming part of the financial statements

    for the period ending 30 June 2018

    Funding
    This section identifies AFMA's funding structure.                
                     
                     
    Note 4.1 Appropriations                
                     
    Note 4.1A: Annual Appropriations ('Recoverable GST exclusive')                
                     
    Annual Appropriations for 2018                
          Annual Appropriation Adjustments to appropriation Total appropriation Appropriation applied in 2018 (current and prior years) Variance1  
                 
          $'000 $'000 $'000 $'000 $'000
    Departmental                
    Ordinary annual services     20,049 - 20,049 20,049 -  
    Departmental Capital Budget2     465 - 465 417 48  
    Equity injections     - - - - -  
    Total departmental     20,514 - 20,514 20,466 48
    Administered                
    Ordinary annual services                
    Administered items1     5,424 - 5,424 1,070 4,354  
    Total administered     5,424 - 5,424 1,070 4,354  
                     

    Notes:

    1. The variance of $4,354,000 for Administered funds remained as unspent and will be returned to consolidated revenue.

    2. Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts.

    Annual Appropriations for 2017                
          Annual Appropriation Adjustments to appropriation Total appropriation Appropriation applied in 2017 (current and prior years) Variance1  
                 
          $'000 $'000 $'000 $'000 $'000  
    Departmental                
    Ordinary annual services     20,310 - 20,310 20,310 -  
    Departmental Capital Budget2     462 - 462 318 144  
    Other Services                
    Equity injections     150 - 150 - 150  
    Total departmental     20,922 - 20,922 20,628 294  
    Administered                
    Ordinary annual services                
    Administered items     5,354 - 5,354 3,085 2,269  
    Total administered     5,354 - 5,354 3,085 2,269  
    Notes:                
    1. The variance of $2,269,000 for Administered funds remained as unspent and was returned to consolidated revenue.
    2. Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts.
     
                   
                     
                     
    Note 4.1B: Unspent Annual Appropriations ('Recoverable GST exclusive')                
                     
                2018 2017  
                $'000 $'000  
    Departmental                
    Cash and Cash equivalents           300 418  
    Appropriation Act (No. 1) 2017-18 (Capital Budget - DCB) - Non Operating           48 -  
    Supply Act (No.1) 2016-2017 (Capital Budget - DCB) - Non Operating           144 144  
    Appropriation Act (No. 2) 2016-17 - Equity Injections           150 150  
    Appropriation Act (No. 1) 2015-16 (Capital Budget - DCB) - Non Operating           171 171  
    Total departmental           813 883  
    Administered                
    Appropriation Act (No. 1) 2016-17           4,354 2,269  
    Total administered           4,354 2,269  
                     
                     
    Note 4.1C: Special Appropriations ('Recoverable GST exclusive')                
                     
              Appropriation applied    
                2018 2017  
    Authority     Type Purpose   $'000 $'000  
    Fisheries Administration Act 1991; Section 94C, Departmental     Unlimited Amount To provide an appropriation for adjusted levy amounts and other receipts specified by s94C of the Fisheries Administration Act 1991   14,349 14,227  
    Total           14,349 14,227  
                     
                     
                     
    Note 4.2: Special Accounts                
                     
            AFMA Special Account (Departmental)1   AFMA Services for Other Entities and Trust Moneys Special Account (Special Public Money)2    
            2018 2017 2018 2017  
            $'000 $'000 $'000 $'000  
    Balance brought forward from previous period       14,036 13,863 - 36  
    Increases:                
    Appropriation for reporting period       20,466 20,629 - -  
    Special appropriation (Fisheries Administration Act 1991 - Section 94C)       14,349 14,227 - -  
    Other receipts       4,856 3,931 255 304  
    Total increases       39,671 38,787 255 340  
    Decreases:                
    Employee payments       (20,707) (20,398) - -  
    Supplier payments       (18,299) (17,897) - -  
    Purchase of property, plant and equipment       (462) (319) - -  
    Repayments debited from the special account       - - (1) (340)  
    Total decrease       (39,468) (38,614) (1) (340)  
    Total balance carried to the next period/td>       14,239 14,036 254 -  

    Balance represented by:

    1. Appropriation: Public Governance, Performance and Accountability Act 2013; section 80.

    Establishing Instrument: Fisheries Administration Act 1991; section 94B.

    Purpose: Payment or discharge of the costs, expenses or other obligations incurred in the performance or exercise of the functions and powers of the Authority.

    2. Appropriation: AFMA Services for Other Entities and Trust Moneys Special Account (Special Public Money)

    Establishing Instrument: Public Governance, Performance and Accountability Act 2013; section 78.

    Purpose: For amounts that are held on trust or otherwise for the benefit of a person other than the Commonwealth.

    Australian Fisheries Management Authority

    Notes to and forming part of the financial statements

    for the period ending 30 June 2018

    People and relationships
    This section provides a range of employment and post employment benefits provided to our people and our relationships with other key people.      
           
           
           
    Note 5.1 Employees      
           
      2018   2017
      $'000   $'000
    Note 5.1A Employee benefits      
    Wages and salaries 16,089   15,973
    Superannuation:      
    Defined contribution plans 1,819   1,794
    Defined benefit plans 1,111   1,137
    Leave and other entitlements 1,611   1,471
    Total employee benefits 20,630   20,375
           
           
    Note 5.1B: Employee Provisions      
    Leave 5,082   5,164
    Total employee provisions 5,082   5,164
           
    Employee provisions are expected to be settled in:      
    No more than 12 months 3,777   3,823
    More than 12 months 1,305   1,341
    Total employee provisions 5,082   5,164

    Accounting Policies - People and Relationships

    Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits wholly settled due within twelve months of end of reporting period are measured at their nominal amounts.

    The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

    Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

    Leave

    The liability for employee benefits includes provision for annual leave and long service leave.

    The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including AFMA's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

    Superannuation

    Staff of AFMA are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

    The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

    The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.

    AFMA makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans.

    Significant Accounting Judgements and Estimates

    In the process of applying the accounting policies listed in this note, AFMA has made the judgements that have the most significant impact on the amounts recorded in the financial statements with respect to the liability for employee provisions. The liability for long service leave has been estimated using present value techniques in accordance with the shorthand method as per FRR 24.1 (a). This takes into account expected salary growth, attrition and future discounting using Commonwealth bond rates.

    No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

    Note 5.2: Key Management Personnel Remuneration

    Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. AFMA has determined the key management personnel to be Commissioners and Executive Officers. Key management personnel remuneration is reported in the table below:

      2018   2017
      $   $
           
    Salary and other allowances 1,319,586   1,245,817
    Post-employment benefits 222,245   213,466
    Other long-term benefits 116,352   112,088
    Total key management personnel remuneration expenses¹ 1,658,183   1,571,371
           
           
    The total number of key management personnel that are included in the above table are: 10   10

    ¹The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

    Note 5.3: Related Party Disclosures

    Related party relationships

    The entity is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel including the Portfolio Minister and Executive, and other Australian Government entities.

    Transactions with related parties:

    Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

    Significant transactions with related parties can include:

    • the payments of grants or loans;
    • purchases of goods and services;
    • asset purchases, sales transfers or leases;
    • debts forgiven; and
    • guarantees.

    Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.

    Australian Fisheries Management Authority

    Notes to and forming part of the financial statements

    for the period ending 30 June 2018

           
    Managing Uncertainty
    This section analyses how AFMA manages financial risks within its operating environment.      
           
           
    Note 6.1 Contingent Liabilities and Contingent Assets      
    AFMA is negotiating payment of an award of 'party to party' costs associated with a Federal Court case in which AFMA was involved. The costs are not currently quantifiable but are not expected to be material.      
           
           
    Note 6.2 Financial Instruments      
           
      2018   2017
      $'000   $'000
    Note 6.2A Categories of Financial Instruments      
           
    Financial Assets      
    Loans and receivables      
    Cash and cash equivalents 14,238   14,036
    Receivables for goods and services 404   289
    Total financial assets 14,642   14,325
           
    Financial Liabilities      
    Financial liabilities measured at amortised cost      
    Trade creditors 2   2
    Total financial liabilities 2   2
           
           
    Note 6.2B Fair Value of Financial Instruments      
           
    The fair value of financial instruments approximates their carrying amounts.      
           
           
    Note 6.3 Administered Financial Instruments      
           
      2018   2017
      $'000   $'000
    Note 6.3A Categories of Financial Instruments      
    Financial Assets      
    Loans and Receivables      
    Cash and cash equivalents -   -
    Receivables for fees and charges 236   222
    Carrying amount of financial assets 236   222
           
    Financial Liabilities      
    Financial liabilities measured at amortised cost      
    Trade creditors 23   157
    Carrying amount of financial liabilities 23   157
           
    The fair value of financial instruments approximates their carrying amounts.      

    Accounting Policies - Financial Instruments

    Financial Assets

    AFMA classifies its financial assets as loans and receivables:

    The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

    Effective Interest Method

    The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

    Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

    Receivables

    Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'receivables'. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

    Impairment of Financial Assets

    Financial assets are assessed for impairment at the end of each reporting period.

    Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

    Financial assets held at cost - if there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

    Financial Liabilities

    Financial liabilities are classified as either financial liabilities or other financial liabilities.

    Financial liabilities are recognised and derecognised upon 'trade date'.

    Other Financial Liabilities

    Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

    Contingent Liabilities and Contingent Assets

    Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.