NOTES TO THE FINANCIAL STATEMENTS
For the year ending 30 June
Cash and cash equivalents
Cash and cash equivalents comprises cash on hand , demand deposits and short term investments , which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value .
Property , plant and equipment
Each class of property , plant and equipment is carried at cost or fair value less , where applicable , any accumulated depreciation and impairment .
Property , plant and equipment is depreciated on a straight-line or dimishing value basis over the asset ' s useful life to the Association , commencing when the asset is ready for use .
At the end of each annual reporting period , the depreciation method , useful life and residual value of each asset is reviewed . Any revisions are accounted for prospectively as a change in estimate
Employee Benefits
Provision is made for the association ' s liability for employee benefits arising from services rendered by employees to the end of the reporting period . Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled .
Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits . In determining the liability , consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements . Cash flows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies , with terms to maturity that match the expected timing of cash flows . Changes in measurement of the liability are recognised in the statement of profit or loss .
Inventories
Inventories are measured at the lower of cost or net realisable value . Cost of inventory is determined using the first-in-first-out basis and is net of any rebates and discounts received . Net realisable value is estimated using the most reliable evidence at the reporting date and inventory is written down through an obsolescence provision if necessary .
Other Intangibles
Water Rights Water Rights are recognised at cost of acquisition . Water Rights have an infinite life and are carried at cost less any impairment losses and are tested for impairment annually . The Association currently holds Water Rights of 25ML , which have a median net realisable value of $ 7,925 / ML
2021 / 22 ABA ANNUAL REPORT
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