REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 3. Revenue from contracts with customers and other income (continued) (c) Contract liabilities As of 1 July 2020, contract liabilities amounted to $61.5 million, of which $61.5 million was recognised during the year ended 30 June 2021 (FY20: $50.0 million was recognised during the year ended 30 June 2020 relating to opening contract liabilities of $54.0 million). 4. Expenses 2021 $’000 2020 $’000 Profit before income tax includes the following specific expenses: Finance (income)/expense Interest income (2,179) (2,878) Interest expense 6,574 7,587 Foreign exchange loss - financing 274 853 Total finance expense 4,669 5,562 Depreciation of property, plant and equipment 17,372 17,270 Amortisation of intangibles 65,240 61,350 Total depreciation and amortisation expense 82,612 78,620 Advertising placement costs 15,477 9,192 Net foreign exchange (gain)/loss 1,947 (2,132) Impairment of goodwill – 106,761 Impairment of investment in associate – 41,808 (a) Goods and services tax (GST) Accounting policies Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Consolidated Statement of Financial Position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the taxation authority are presented as operating cash flows. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 75