NOTES TO THE FINANCIAL STATEMENTS
For the year ending 30 June Impairment of non-financial assets
At the end of each reporting period , the association determines whether there is evidence of an impairment indicator for non-financial assets .
Where this indicator exists and regardless of goodwill , indefinite life intangible assets and intangible assets not yet available for use , the recoverable amount of these assets is estimated .
Where assets do not operate independently of other assets , the recoverable amount of the relevant cashgenerating-unit ( CGU ) is estimated .
The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use . Value in use is the present value of the future cash flows expexted to be derived from an asset or cash-generating unit .
Where the recoverable amount is less than the carrying amount , an impairment loss is recognised in profit or loss .
Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss , except for goodwill .
Provisions
Provisions are recognised when the association has a legal or constructive obligation , as a result of past events , for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured .
Trade and Other Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method , less an allowance for impairment . Collectability of trade receivables is reviewed on an on-going basis . Individual debts that are known to be uncollectable are written off when identified . An impairment provision is raised when there is objective evidence that the Company will not be able to recover the receivable .
Trade and Other Payables
Trade and other payables are carried at amortised cost and due to their short term nature they are not discounted . They represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Association becomes obliged to make future payments in respect of the purchase of these goods and services .
24 2021 / 22 ABA ANNUAL REPORT