Parks Victoria - Annual Report 2009-10

FINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.12 Contributed CapitalConsistent with interpretation 1038 Contributions by Owners Made to Wholly-Owned Public SectorEntities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base havebeen designated as contributed capital. Other transfers that are in the nature of contributions ordistributions have also been designated as contributed capital.2.13 Income RecognitionAmounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes.Parks Charge income is recognised when invoiced by Parks Victoria. Other income, including externalgrants/funding, is recognised when earned or on receipt, depending on which occurs earlier.Where government and external grants/funding are reciprocal, income is recognised as performanceoccurs under the grant. Non-reciprocal grants are recognised as income when the grant is received orreceivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.Where the grants / funding received has not been expended and a reciprocal agreement exists, wherebythe external revenue is required to be repaid if not used or an asset transfer to the external party is tooccur upon completion of the asset, Parks Victoria records this revenue as deferred revenue.2.14 Grants and Other PaymentsGrants and other payments to third parties are recognised as an expense in the reporting period in whichthey are paid or payable.2.15 Resources Provided and Received Free of Charge or For Nominal ConsiderationContributions of resources (including volunteer resources and assets received free of charge or fornominal consideration) and assets provided free of charge or for nominal consideration are recognised attheir fair value. Contributions in the form of services are only recognised when a fair value can be reliablydetermined and the services would have been purchased if not donated.2.16 Interest incomeInterest income includes unwinding over time of discounts on financial assets and interest received onbank term deposits and other investments.Interest income is recognised on a time proportionate basis that takes into account the effective yield onthe financial asset.68 Parks Victoria - Annual Report 2009-10