AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

4

REVENUE AND EXPENSES (CONTINUED)

2023 $’000

2022 $’000

(a) Revenue from contracts with customers Commission, brokerage and fee income Management fees from related entities

734,033

312,765

5,982

13,774 5,963

Other revenue

23,644 763,659

Total revenue from contracts with customers

332,502

Recognised at a point in time

727,847 35,812

312,496 20,006

Recognised over time

(b) Other income

Interest income from related parties Interest from other persons/corporations

248

169 866

27,836 28,084

Total other income

1,035

(c) Share of Profit of Associates Share of Profit of Associates After Tax but Before Amortisation

41,920 (6,230) 35,690

45,853 (6,800) 39,053

Amortisation of intangibles – Associates

Total share of profit of associates

Expenses Expenses Expenses including salaries and wages, business technology and software costs, insurance, advertising and marketing, and interest are recognised as incurred or as services are provided to the Group. Salary related statutory obligations such as long service leave are accrued on a probability weighted basis to the vesting date. Assumptions are applied in relation to annual and long service leave with respect to expected wage growth and risk free discount rates over the next 10 years. Amortisation of brokering registers is conducted on a straight line basis over the useful life of the asset, generally 10-12 years. The right of use asset incorporates fixed rental increases, with changes based on indexes and rental market reviews incorporated when such changes are known. The Group applies practical expedients in relation to short term (less than 12 months) and low value (less than $7,000 AUD) leases. Such leases are recognised on a straight line basis of the expected gross expense over the term of the lease. Depreciation/Amortisation of all other assets is recognised on a straight line basis over the useful life of the asset, refer to Note 27 for more details. Commission expenses are sub agent and referral fees paid to another party in return for introductory services on insurances brokered by the Group. The expense is recognised in full when the related insurance policy is invoiced. For broking entities, typically they are the principal in the arrangement and as such the commission income and expense are not offset. For agencies, and in some arrangements for broking entities, the commission is recognised on a net basis as the entity was determined to be an agent in the arrangement. Legal fees/acquisition costs are recognised as they are incurred except in relation to acquisition of a non-financial asset, borrowing facility, or associates. The costs that are directly attributable to bringing the asset to its intended use are capitalised and depreciated over the useful life of the asset. The costs directly attributable to obtaining funding are capitalised and amortised over the term of the facility to a maximum of 5 years. The cost directly attributable to acquisition of an associate is capitalised as part of the carrying value of the associate. Further disclosures in relation to non-operating gains and losses such as fair value adjustments to carrying value or gains/ losses from sale are made in Notes 7-9.

AUB GROUP ANNUAL REPORT 2023

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