Annual Report 2010–2011, Part 2: Financial (1.8 ... - Tourism Victoria

Note 1. Summary of significant accounting policies (continued)
(c) Reporting entity
The financial statements cover Tourism
Victoria as an individual reporting entity.
It is a statutory authority of the State
of Victoria, established pursuant to an
order made by the Premier under the
Administrative Arrangements Act 1983.
Its principal address is:
Tourism Victoria
Level 32, 121 Exhibition Street
Melbourne VIC 3000
The financial statements include all the
controlled activities of Tourism Victoria.
(d) Objectives and funding
Tourism Victoria’s resources are primarily
directed to marketing the state, nationally
and internationally, as well as contributing
to the development of a sustainable
tourism industry.
(e) Scope and presentation of financial
statements
Comprehensive operating statement
Income and expenses in the comprehensive
operating statement are classified according
to whether or not they arise from ‘transactions’
or ‘other economic flows’. This classification
is consistent with the whole of government
reporting format and is allowed under AASB
101 Presentation of financial statements.
’Transactions’ and ‘other economic flows’
are defined by the Australian system of
government finance statistics: concepts,
sources and methods 2005 Cat. No. 5514.0
published by the Australian Bureau
of Statistics.
’Transactions’ are those economic flows
that are considered to arise as a result
of policy decisions, usually interactions
between two entities by mutual agreement.
Transactions also include flows within an
entity, such as depreciation where the
owner is simultaneously acting as the
owner of the depreciating asset and as
the consumer of the service provided
by the asset. Taxation is regarded as
mutually agreed interactions between the
Government and taxpayers. Transactions
can be in kind (e.g. assets provided/given
free of charge or for nominal consideration)
or where the final consideration is cash.
’Other economic flows’ are changes arising
from market re-measurements. They
include gains and losses from disposals
of non-financial physical assets; and fair
value changes of financial instruments.
The net result is equivalent to profit or loss
derived in accordance with AAS.
Balance sheet
Assets and liabilities are presented in
liquidity order with assets aggregated
into financial assets and non-financial
assets. Current and non-current assets and
liabilities (those expected to be recovered
or settled beyond 12 months) are
disclosed in the notes, where relevant.
Cash flow statement
Cash flows are classified according to
whether or not they arise from operating
activities, investing activities, or financing
activities. This classification is consistent
with requirements under AASB 107
Statement of cash flows.
Statement of changes in equity
The statement of changes in equity
presents reconciliations of each nonowner
and owner equity opening balance
at the beginning of the reporting period
to the closing balance at the end of the
reporting period. It also shows separately
changes due to amounts recognised in
the comprehensive result and amounts
recognised in other comprehensive
income related to other non-owner
changes in equity.
Rounding of amounts
Amounts in the financial statements
(including the notes) have been rounded
to the nearest dollars, unless otherwise
stated. Figures in the financial statements
may not equate due to rounding.
(f) Income from transactions
Income is recognised to the extent that
it is probable that the economic benefits
will flow to the entity and the income can
be reliably measured. Amounts disclosed
as revenue are, where applicable, net of
returns, allowances and duties and taxes.
Revenue is recognised for each of Tourism
Victoria’s major activities as follows:
Grant income
Grants are recognised as income when
Tourism Victoria gains control over
the underlying assets. Where grants
are reciprocal, income is recognised as
performance occurs under the grant.
Non-reciprocal grants are recognised
as income when the grant is received or
receivable. Conditional grants may be
reciprocal or non-reciprocal depending
on the terms of the grant.
Other income
cooperative ventures income
The amount recognised for
cooperative ventures refers to funds
directly received and banked by
Tourism Victoria for activities such as
brochure participation and cooperative
marketing. Funds from cooperative
venture participants which are
reciprocal are recognised as revenue
in the year when cooperative venture
activities take place. Funds received
prior to activities having taken place
are recognised as Funds Received in
Advance where reciprocal or as revenue
if not reciprocal.
Interest income
Interest income includes interest
received on bank term deposits,
interest from investments, and other
interest received. Interest income is
recognised on a time proportionate
basis that takes into account the
effective yield on the financial asset.
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