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 199 DATA CENTRE SERVICES FINANCIAL REPORT For lessors, the finance and operating lease distinction remains largely unchanged. For finance leases, the lessor recognises a receivable equal to the net investment in the lease. Lease receipts from operating leases are recognised as income either on a straight-line basis or another systematic basis where appropriate. Consequently, it is expected that operating lease commitments will be required to be recognised in the Balance Sheet through a lease liability and corresponding right to use asset from 2019-20 in accordance with AASB 16 Leases. In the Comprehensive Operating Statement the operating lease expense will be replaced with a depreciation expense relating to the right to use asset and interest expense relating to the lease liability. These cannot be quantified at this time. AASB 1058 Income for Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers AASB 1058 Income for Not-for-Profit Entities and AASB 15 Revenue from Contracts with Customers are effective for annual reporting periods beginning on or after 1 January 2019 and will be reported in the financial statements for the first time in 2019-20. Under the new AASB 1058 Income for Not-for-Profit Entities, revenue from grants and donations will be recognised when any associated performance obligation to provide goods or services is satisfied, and not immediately upon receipt as currently occurs. Consequently, more liabilities will be recognised in the Balance Sheet after adoption of thisstandard. Several other amending standards and AASB interpretations have been issued that apply to future reporting periods, but are considered to have limited impact on future financial reporting. c) REPORTING ENTITY The financial statements cover DCS as an individual reporting entity. DCS is a Northern Territory Government Business Division (GBD) established under the Interpretation Act Administrative Arrangements Order. The principal place of business of the GBD is: Level 3, Darwin Plaza, Smith Street Mall, Darwin NT 0800. d) DCS AND TERRITORY ITEMS The financial statements of DCS include income, expenses, assets, liabilities and equity over which DCS has control (DCS items). Certain items, while managed by DCS, are controlled and recorded by the Territory rather than DCS (Territory items). Territory items are recognised and recorded in the Central Holding Authority as discussed below. Central Holding Authority DCS held no Territory items. e) COMPARATIVES Where necessary, comparative information for the 2015-16 financial year has been reclassified to provide consistency with current year disclosures. f) PRESENTATION AND ROUNDING OF AMOUNTS Amounts in the financial statements and notes to the financial statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Figures in the financial statements and notes may not equate due to rounding. g) CHANGES IN ACCOUNTING POLICIES There has 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 theseestimates.