Berry Street Web Docs Financial Report 2009 | Page 10

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d)

Cash and cash equivalents

For the purposes of the Cashflow Statement, cash and cash equivalents include cash on hand, at banks and
on deposit including investments in bank bills. These have original maturities of three months or less.
Cash flows are presented in the Cashflow Statement on a gross basis, except for the GST component of
investing and financing activities, which is disclosed as operating cash flow.
(e)

Revenue

Revenue is measured at the fair value of the consideration received or receivable after taking into account
any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of
finance and is discounted at a rate of interest that is generally accepted in the market for similar
arrangements. The difference between the amount initially recognised and the amount ultimately received is
interest revenue.
Revenue received from government agencies, fundraising and other grant income sources is recognised on
an accruals basis when the right to receive has been established.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
Dividend revenue is recognised when the dividend has been received.
Revenue from the rendering of a service is recognised upon the delivery of the service.
All revenue is stated net of the amount of goods and services tax (GST).
(f)

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and
payables in the Balance Sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST components of
investing and financing activities, which are disclosed as operating cash flows.
(g)

Unexpended Grants

The association receives grant monies to fund projects either for contracted periods of time or for specific
projects irrespective of the period of time required to complete those projects. It is the policy of the
association to treat grants monies as unexpended grants in the Balance Sheet where the association does
not gain control over the grant monies and there exists a possibility that such monies will need to be repaid in
a subsequent financial period.
(h)

Income Tax

No provision for income tax has been raised as the association is exempt from income tax under Division 50
of the Income Tax Assessment Act 1997.
(i)
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily
take a substantial period of time to prepare for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing
costs are recognised in income in the period in which they are incurred.

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