National Archives of Australia - Annual reports

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule ofAdministered items and related notes are accounted for on the same basis and using the same policies asfor departmental items, except where otherwise stated in Note 1.19.1.3 Significant Accounting Judgements and EstimatesIn the process of applying the accounting policies listed in this note, the Archives has made the followingjudgements that have the most significant impact on the amounts recorded in the financial statements:a) the fair value of heritage and cultural assets is informed by independent valuation, and was last revaluedon 30 June 2009; andb) the fair value of other property, plant and equipment is informed by independent valuation, and was lastrevalued on 30 June 2010.1.4 New Australian Accounting StandardsAdoption of New Australian Accounting Standard RequirementsNo accounting standard has been adopted earlier than the application date as stated in the standard. Of thenew standards, revised standards, interpretations and amending standards issued prior to the signing of thestatement by the Director-General and Chief Financial Officer, that are applicable to the current reportingperiod, none had a material financial impact on the entity.Future Australian Accounting Standard RequirementsOf the new standards, revised standards, interpretations, and amending standards issued by the AustralianAccounting Standards Board prior to the signing of the statement by the Director-General and Chief FinancialOfficer, that are applicable to future reporting periods, none are expected to have a material financial impacton the entity.1.5 RevenueRevenue from the sale of goods is recognised when:a) the risks and rewards of ownership have been transferred to the buyer;b) the Archives retains no managerial involvement or effective control over the goods;c) the revenue and transaction costs incurred can be reliably measured; andd) it is probable that the economic benefits associated with the transaction will flow to the entity.Revenue from rendering of services is recognised by reference to the stage of completion of contracts at thereporting date. The revenue is recognised when:a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured;andb) the probable economic benefits associated with the transaction will flow to the entity.The stage of completion of contracts at the reporting date is determined by reference to:a) surveys of work performed;b) services performed to date as a percentage of total services to be performed; orc) the proportion that costs incurred to date bear to the estimated total costs of the transaction.Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts dueless any impairment allowance account. Collectability of debts is reviewed at the end of reporting period.Allowances are made when collectability of the debt is no longer probable.66 Annual Reports 2010–11