Operating expenses are recognised as an expense in the period to which they relate.
A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to the ownership of an asset.
Accommodation lease rentals payable under operating leases are recognised as an expense on a straight-line basis over the term of the relevant lease. Lease incentives received as an incentive to enter into an operating lease are also recognised evenly over the term of the lease as a reduction in the rental expense.
Unaudited budget 2021
|$115,851||Contractors and consultants||$72,004||$106,316|
|$104,231||Information technology and telecommunications||$88,902||$89,184|
|$6,929||Communications and publicity||$3,765||$6,540|
|$7,397||Travel and transport||$1,802||$3,875|
|–||Net realised and unrealised foreign exchange losses||$1,784||–|
|$1,166||Audit fees for audit of the financial statements||$1,341||$1,209|
|$101||Disbursements for audit of the financial statements||$54||$154|
|$701||Net loss on disposal of assets||$45||–|
|$483||Debt expected credit losses and write-off||$13||–|
|$1,706||Other operating expenses||$1,609||$55,784|
Explanation of major variances against budget
Operating expenses were $95.335 million lower than budget due to the timing of transformation programme expenditure on consultants and contractors, a reduction in travel costs due to new technology solutions that enable us to meet and work together virtually and COVID-19 related travel restrictions, and transformation operating contingency funding that has been transferred to 2021-22.