Annual Report 2003/2004 Department of Business Industry and Resource Development
Tabled paper 1496
Tabled Papers for 9th Assembly 2001 - 2005; Tabled Papers; ParliamentNT
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1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (a) Objectives and funding The Department of Business, Industry and Resource Development (DBIRD) provides a leadership and coordination role for the economic development of businesses and industries and the development of and trade in natural resources across the regions of the Northern Territory. Industries covered include minerals, petroleum, pastoral, agriculture, horticulture, fishing and the manufacturing and service sectors. The department is predominantly funded by Parliamentary appropriations, with the balance being funded from agency-own source revenue. In 2003-04 approximately $10M was generated from external corporations and Commonwealth agencies and approximately $5M generated through fees and charges. A further $0.1 M was received in interest. NOTES TO FINANCIAL STATEMENTS For the year ended 30 June 2004 Tf (b) Central Holding Authority The Central Holding Authority (CHA) is the parent body that represents the Governments ownership interest in Government controlled entities. The Central Holding Authority also records all Territory items. Territory items are revenues, expenses, assets and liabilities controlled by the Government and managed by Agencies on behalf of the Government. The main Territory item is Territory revenue, which includes taxation and royalty revenue, Commonwealth general purpose funding (such as GST revenue), fines, and statutory fees and charges. The CHA also holds certain Territory assets not assigned to agencies as well as certain Territory liabilities that are not practical or effective to assign to individual agencies such as long service leave. Territory items The CHA recognises all Territory items, therefore the Territory items managed by the agency on behalf of Government are not included in the agency financial statements. However, as the agency is accountable for the Territory items it manages on behalf of Government, these items have been separately disclosed in Note 21, titled Schedule of Territory Items. (c) Basis of accounting The financial statements have been prepared in accordance with the requirements of the Financial Management Act and Treasurers Directions. Except where stated the financial statements have been prepared in accordance with the historical cost convention. These financial statements do not comply with International Accounting Standards, because Australia is not adopting these requirements until reporting periods commencing on or after 1 January 2005. However the potential impact on accounting policies that will arise from the transition to AASB equivalents of IASB pronouncements is disclosed in note 24. The following is a summary of the material accounting policies, which have been adopted in the preparation of the financial statements. Department of Business, Industry & Resource Development 95 An nu al R ep or t