b'NOTE 14: CONTRACT LIABILITIES20222021Notes$000$000 CURRENTUnsecured Liabilities Subsidies in advance - operational6,52450 Total Current6,52450 NON-CURRENTSecured Liabilities Grants in advance - capital14 (a)3,7294,098Total non-current3,7294,09814 (a) The construction of the Trebonne Aged Care facility was funded by a Rural, Regional and Other Special Needs Building Fund Grant by the Department of Health. The Department requires Ozcare to operate the 24 bed facility for the purpose intended under the grant agreement for a period of at least 20 years from the project completion date of 26 June 2018.Accounting policy Grants are principally of a recurrent or capital nature and intended to fund ongoing operations or asset acquisitions.Grants received on the condition that specified services are delivered, or conditions are fulfilled, are considered reciprocal. Such grants are initially recognised as a liability and revenue is recognised as services are performed or conditions fulfilled. Revenue from non-reciprocal grants is recognised when the entity obtains control of the funds. Significant judgement At the date of acquisition of the Trebonne facility (the Canossa acquisition), Ozcare assumed the contingent liability in relation to the capital grant funding to construct the Trebonne aged care facility. Because this contingent liability was part of a business combination, Ozcare were required to book this contingent liability as a liability at fair value on acquisition date.The funding agreement stipulates that the property must be continued to be used for the purpose under the agreement for no less than 20 years and if there is a change in purpose, there may be a requirement to repay all or part of the grant of $4,661,000.The directors have estimated the fair value of the liability by amortising the original funding amount received over the 20-year period and calculated the remaining amount that may be required to be paid of $4.097 million (representing 29 months in use) on the date of acquisition. The balance is released to profit over a straight-line period. Page | 40'