Department of Corporate and Information Services annual report 2016-17
Annual report 2016-17
Northern Territory. Department of Corporate and Information Services
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Northern Territory. Department of Corporate and Information Services -- Periodical
Northern Territory Government
Department of Corporate and Information Services annual report; Annual report
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Northern Territory Government
Annual Report 2016-17 | Department of Corporate and Information Services 163 NT FLEET FINANCIAL REPORT g) CHANGES IN ACCOUNTING POLICIES There have been two changes to the accounting policies adopted in 2016-17 as a result of management decisions. These include changes to: 1. recognise all employee entitlements as current assets rather than arbitrarily splitting them between current and non-current assets; and 2. include related parties disclosures in the statements. h) ACCOUNTING JUDGMENTS AND ESTIMATES The preparation of the financial report requires the making of judgments and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgments and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. i) GOODS AND SERVICES TAX (GST) Income, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet. Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified. j) TAXATION NT Fleet is required to pay income tax on its accounting surplus at the company tax equivalent rate of 30% in accordance with the requirements of the Treasurers Directions, NT Tax Equivalents Regime. k) CONTRIBUTIONS BY AND DISTRIBUTIONS TO GOVERNMENT NT Fleet may receive contributions from government where the government is acting as owner of NT Fleet. Conversely, NT Fleet may make distributions to government. In accordance with the Financial Management Act and Treasurers Directions, certain types of contributions and distributions, including those relating to administrative restructures, have been designated as contributions by, and distributions to, government. These designated contributions and distributions are treated by NT Fleet as adjustments to equity. The Statement of Changes in Equity provides additional information in relation to contributions by, and distributions to, government. l) DIVIDENDS NT Fleet has provided for a dividend payable at the rate of 50% of net profit after tax in accordance with the Northern Territory Government's dividend policy.