Note 2. Revenue

Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised as follows:

Revenue from the Crown

Revenue from Crown transactions are considered to be non-exchange transactions.

Revenue from the Crown is measured based on IR’s funding entitlement for the reporting period. The funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year, and certain other unconditional funding adjustments formally approved prior to balance date.

IR can incur expenses only within the scope, period and value limits of its Vote Revenue appropriations. The fair value of revenue from the Crown is considered equivalent to the funding entitlement.

Revenue from the Crown was higher than budget by $13.540 million. The variance is due to net baseline increases and decreases during the financial year as set out in the 2023–24 Supplementary Estimates.

Other revenue

Other revenue transactions as outlined below are considered to be exchange transactions.

Revenue from recoveries

Revenue from recoveries is recognised as revenue when earned. 

Sale of services

The sale of services is recognised in the accounting period in which the services are provided.

Rental revenue from accommodation sub-leases

Rental revenue from sub-leased accommodation is recognised as revenue on a straight-line basis over the term of the lease.