ANNUAL REPORT 2021-22
40
Statement of cash flows
for the year ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Interest received
Payments to suppliers and employees
Interest paid
Income taxes paid
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
Payments for property, plant and equipment
Payments for intangibles
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in debt
Dividends paid
Grant received
Equity received
Principal repayment of lease liabilities
Net cash flows (used in)/from financing activities
ANNUAL REPORT 2021-22
ANNUAL REPORT 2021-22
2022
2021
Note
$'000
$'000
305,278
262,290
136
105
(244,645)
(7,282)
(29)
(224,893)
(6,972)
24
53,458
30,529
(432)
(39,659)
(41,727)
(380)
(40,471)
(42,247)
(520)
Notes to the financial statements
for the year ended 30 June 2022
CORPORATE INFORMATION
Power Generation Corporation (the Corporation) trading as
Territory Generation was established on 29 May 2014 under the
Power Generation Corporation Act 2014 (PGC Act).
The Corporation is declared to be a Government Owned
Corporation for the purposes of the Government Owned
Corporations Act 2001 (GOC Act).
The Board of Directors is responsible to the Shareholding
Minister for the financial performance of the Corporation.
The financial report was authorised for issue by the directors
on 27 September 2022.
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation
of the financial statements are set out below. These policies
have been consistently applied to all years presented, unless
otherwise stated.
(a) New, revised or amending accounting standards and
interpretations adopted
The Corporation has adopted all of the new, revised or amending
accounting standards and interpretations issued by the Australian
Accounting Standards Board (AASB) that are relevant to its
operations and are mandatory for the current reporting period.
No new, revised or amending accounting standard or interpretation
has been adopted earlier than the application date as stated in
the standard.
Revised standards, amendments to standards and
interpretations that are applicable to future periods have
been issued by the AASB. None of these are expected to have
a material impact on future reporting periods, either because
the Corporation does not conduct the types of transactions
addressed by the pronouncements or because of the extent
to which they may impact the Corporation is not expected to
be material.
(b) Basis of preparation
These general purpose financial statements have been prepared
in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards
Board (AASB) and the GOC Act, as appropriate for profit oriented
entities.
The financial statements comprise Power Generation
Corporation's financial statements as an individual entity. For the
purpose of preparing financial statements, the Corporation is a
for-profit entity.
Historical Cost Convention
The financial statements have been prepared under the
historical cost convention. Cost is based on the fair values of the
consideration given in exchange for the assets. Certain assets are
carried at their fair value, where the fair value is lower than the
historical cost.
Critical accounting estimates
The preparation of the financial statements requires the
use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of
applying the Corporation's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial
statements are disclosed in Note 2.
(c) Foreign currency translation
The financial statements are presented in Australian dollars,
which is the Corporation's functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian
dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions, and from the translation
of monetary assets and liabilities denominated in foreign
currencies at financial year-end exchange rates are recognised in
profit or loss.
(d) Revenue
Revenue is measured based on the consideration specified in
a contract with a customer and excludes amounts collected
on behalf of third parties. The Corporation recognises revenue
when performance obligations under relevant customer
contracts are completed. Performance obligations may be
completed at a point in time or over time.
Electricity sales
Revenue is recognised upon billing, as there is a right to invoice
when the customers have consumed the performance obligation
of electricity supply. Electricity sales revenue is recognised
on measurement of electrical consumption at the metering
point, as derived from the information provided by the Market
Operator. The transaction price is the contracted price for the
electricity consumed during the period. Electricity sales are
billed monthly in arrears with 30 day payment terms. At each
balance date, sales and receivables include an amount of sales
delivered to customers but not yet billed and recognised as
accrued income.
(5,430)
30,000
(3,950)
1,669
(671)
(1,307)
(4,432)
24,743
Net increase in cash and cash equivalents
8,555
13,026
Cash and cash equivalents at the beginning of the period
58,567
45,541
Cash and cash equivalents at the end of the period
6
67,122
58,567
The above statement of cash flows should be read in conjunction with the accompanying notes.
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