2004 - 2005 Annual Report - Tourism Australia

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2005 Note Description Page 1 Summary of significant accounting policies 85 2 Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006 92 3 Economic dependency 94 4 Operating revenues 95 5 Operating expenses 97 6 Financial assets 98 7 Non-financial assets 101 8 Provisions and payables 103 9 Equity 104 10 Cash flow reconciliation 105 11 Directors’ remuneration 106 12 Remuneration of officers 107 13 Remuneration of auditors 107 14 Average staffing levels 107 15 Financial instruments 108 16 Contingent liabilities and assets 111 17 Reporting of outcomes 111 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2005 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 ESTABLISHMENT OF TOURISM AUSTRALIA Tourism Australia (TA) was established under section 5 of the Tourism Australia Act 2004 (the TA Act) on 1 July 2004. TA brings together the Australian Tourist Commission (the ATC), the domestic marketing body See Australia, the Bureau of Tourism Research (BTR), and the Tourism Forecasting Council (TFC). All business functions and operations of the above entities continued without interruption under the umbrella of TA. The Australian Tourist Commission Act 1987 was repealed under section 5 of the Tourism Australia (Repeal and Transitional Provisions) Act 2004 (the Transitional Provisions Act). The Transitional Provisions Act also makes TA the legal successor to the above entities, excluding See Australia in relation to all of their assets, liabilities, contracts and employees. Transfer of assets and liabilities Part 3 Section 6 (2) of the Transitional Provisions Act states, on the proclamation day: (a) the assets and liabilities cease to be assets and liabilities of the ATC and become assets and liabilities of TA without any conveyance, transfer or assignment; and (b) TA becomes the ATC’s successor in law in relation to the assets and liabilities immediately after they become assets and liabilities of Tourism Australia. Part 4 of the Transitional Provisions Act states that assets and liabilities of BTR become assets and liabilities of TA under a declaration in writing by the Minister. Part 5 of the Transitional Provisions Act states that assets and liabilities of TFC become assets and liabilities of TA under a declaration in writing by the Minister. Transfer of staff Section 12 of the Transitional Provisions Act provides that each person employed under section 42 of the Australian Tourist Commission Act 1987 immediately before the proclamation day ceases to be employed by the ATC on the proclamation day and is taken to have been engaged as an employee of Tourism Australia under section 55 of the Tourism Australia Act 2004 on that day. There is no specific provision for transfer of staff of the other entities. 1.2 COMPARATIVE FIGURES As TA was established on 1 July 2004 under the Tourism Australia Act 2004, there are no comparative figures available. 84 85
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2005 1.3 BASIS OF ACCOUNTING The financial statements are required by clause 1 (b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report. The statements have been prepared in accordance with: > Finance Minister’s Orders (being the Commonwealth Authorities and Companies (Financial Statements for reporting periods ending on or after 30 June 2005); > Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and > Consensus Views of the Urgent Issues Group. The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured. 1.4 REPORTING BY OUTCOMES The actual figures by outcome specified in the Appropriation Acts relevant to TA are presented in Note 17. Any intra-government costs included in the figure ‘net cost to Budget outcomes’ are eliminated in calculating the actual budget outcome for the Government overall. 1.5 REVENUE The revenues described in this Note are revenues relating to core operating activities. Revenue from the sale of goods is recognised upon the delivery of goods to the customers. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset. Revenue from the disposal of non-current assets is recognised when control of the assets has passed to the buyer. Revenue from rendering of services is recognised by reference to the stage of completion of contracts to provide the service. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Revenue from Government – Output Appropriations The full amount of the appropriation for departmental outputs for the year is recognised as revenue. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2005 Resources Received Free of Charge Any services received free of charge are recognised as revenue 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. Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition. 1.6 TRANSACTIONS BY THE GOVERNMENT AS OWNER Equity Injections Amounts appropriated by the Parliament as equity injections are recognised as ‘contributed equity’ in accordance with the Finance Minister’s Orders. 1.7 EMPLOYEE BENEFITS Benefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured at their nominal amounts. Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration, including employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2005. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Separation and redundancy Provision is made for separation and redundancy benefit payments in cases where positions have been formally identified as excess to requirements, and a reliable estimate of the amount payable, which is consistent with local requirements, can be determined. 86 87
Page 1 and 2: Annual Report 2004/2005
Page 3 and 4: Contents Chairman’s report 5 Mana
Page 5 and 6: Managing Director’s report Touris
Page 7 and 8: Tourism Australia … the story so
Page 9 and 10: Objectives and outcomes 2004 - 2005
Page 11 and 12: ORGANISATIONAL STRUCTURE Minister f
Page 13 and 14: Directors of Tourism Australia The
Page 15 and 16: Corporate Services OVERVIEW The rol
Page 17 and 18: Strategy and Research OVERVIEW The
Page 19 and 20: Corporate Affairs OVERVIEW The Corp
Page 21 and 22: Marketing ADVERTISING AND DESIGN Th
Page 23 and 24: Australasia OVERVIEW The Australasi
Page 25 and 26: Australasia TRADE EVENTS The Trade
Page 27 and 28: International AUSSIE ENTHUSIASTS Th
Page 29 and 30: The Americas CANADA OVERVIEW Canada
Page 31 and 32: Asia HONG KONG OVERVIEW Tourism gro
Page 33 and 34: Asia SINGAPORE OVERVIEW Australia r
Page 35 and 36: Gulf Countries New Zealand OVERVIEW
Page 37 and 38: UK & Europe ITALY OVERVIEW Australi
Page 39 and 40: FINANCIAL REPORT
Page 41 and 42: Tourism Australia STATEMENT BY DIRE
Page 43: SCHEDULE OF COMMITMENTS As at 30 Ju
Page 47 and 48: NOTES TO AND FORMING PART OF THE FI
Page 59 and 60: Tourism Australia overseas offices

2004 - 2005 Annual Report - Tourism Australia

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