Financial Performance (continued) 1.2 Own-Source Revenue and Gains 2024 $’000 2023 $’000 Rendering of services 10,345 10,969 Total revenue from contracts with customers 10,345 10,969 10,345 10,969 10,345 10,969 OWN-SOURCE REVENUE 1.2A: Revenue from contracts with customers Major product / service line: Service delivery Type of customer: 8,595 7,966 State and Territory Governments 407 298 Non-government entities 1,343 2,705 10,345 10,969 Over time 9,184 9,595 Point in time 1,161 1,374 10,345 10,969 Australian Government entities (related parties) Timing of transfer of goods and services: Accounting Policy Revenue from the rendering of services is recognised when performance of specific service obligations, that are required and enforceable under a contract or agreement made between the Commission and the customer, sufficiently allow the Commission to determine when they have been satisfied. The principal activities from which the Commission generates its revenue include, service fees and direct cost recoveries from the supply of domestic and international human rights technical assistance programs, development of education resources and delivery of training services and interest earned on short-term bank deposits. The Commission predominantly provides services to its customers under agreed terms and conditions contained in contracts or agreements made between the two parties. The nature, timing of satisfaction of performance obligations, and any significant payment terms are specified in the agreed terms and conditions, milestones and payment schedules. The transaction price is the total amount of consideration to which the Commission expects to be entitled in exchange for transferring promised services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. No consideration from contracts is excluded in the transaction price. In the event that a change is required to any of the terms and conditions contained in a contract or agreement, including transaction price, a Contract Variation is agreed between the parties. The Commission has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Commission’s performance completed to date under the original contract or subsequent variations to the contract. Where performance obligations are satisfied over time, revenue is recognised monthly in arrears following a review of costs incurred for the delivery of service obligations for the project(s) and activities related to the customer contract. Costs incurred are primarily recurring in nature, and the customer simultaneously receives and effectively gains control of the services as the Commission performs its obligations. Revenue for performance obligations satisfied at a point in time is recognised in accordance with specified milestones for the performance of obligations in the contract, for example “acceptance of a final report by the customer”. Customer contracts with performance obligations satisfied at a point in time are short-term and include agreed dates for completion of milestones and transferral of any deliverable(s), this also indicates when a customer obtains control of outputs from the promised services. Milestone completion is confirmed with relevant contract manager prior to revenue recognition. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable. 68