Our Financials

ABN 14 009 624 248

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(j) Revenue and income

(i) Grant income The Company obtains income via government grants. Enforceable government grants with sufficiently specific performance obligations are recognised as income as these performance obligations are met.

Where grants do not meet the criteria as above, income is recognised upon receipt of funding.

(ii) Sponsorship income Cash sponsorship is taken to income in the period to which it relates. The total value of in-kind sponsorship is booked to income and expenditure as it is used.

(iii) Interest income Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate.

(iv) Performance revenue Only revenue attributable to performances staged by the Company is reflected in gross terms in operating revenue. Commission on ticket sales and venue hire are recognised in the case of Playhouse, Studio Theatre and other venue performances, at the completion of a performance or season.

Receipts from ticket sales that derives from the activities of commercial promoters and other external parties hiring the Centre is held by the Company in a designated bank account recorded in the asset ledger. All such receipts are also recorded as a corresponding liability on the Statement of Financial Position, resulting in a nil effect on net assets.

All revenue is stated net of the amount of GST.

(k) Long Term Repairs and Maintenance

In 1996, an agreement was reached between the City of Darwin and the Northern Territory Government, whereby the Department of Infrastructure, Planning and Logistics would supervise and be responsible for the payment of the long-term repairs and maintenance of the building.

(l) Economic Dependency

The Company receives significant grant funds from the City of Darwin and the Northern Territory Government. Funding for the 2020-21 financial year has been received. Funding for the 2020-21 to 2023-24 financial years has been confirmed by both major funding bodies. The financial report has been prepared on a going concern basis on the expectation that such funding will continue.

(m) Sponsorship Provided - Community Support

From 1 July 2014, the accounting policy was changed so that for community support, provided by waiver of standard charges, for venue hire for Front of House and technical services neither the income or discount expense is recorded in the financials.

ABN 14 009 624 248

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(n) Financial Instruments

Financial Assets:

Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. Financial assets and financial liabilities are recognised on the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at Fair Value Through Profit or Loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value Through Other Comprehensive Income (FVOCI) or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: • it is held within a business model whose objective is to hold assets to collect contractual cash flows; and • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI are measured at FVTPL.

Financial assets – Business model assessment:

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.

Financial assets – Subsequent measurement and gains and losses:

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.