BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 e )
Impairment of Assets
At the end of each reporting period , the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired . If such an indication exists , the recoverable amount of the asset , being the higher of the asset ’ s fair value less costs to sell and value in use , is compared to the asset ’ s carrying value . Any excess of the asset ’ s carrying value over its recoverable amount is expensed to the statement of comprehensive income .
Where the future economic benefits of the asset are not primarily dependent upon the asset ’ s ability to generate net cash inflows and when the entity would , if deprived of the asset , replace its remaining future economic benefits , value in use is determined as the depreciated replacement cost of an asset .
Where it is not possible to estimate the recoverable amount of an assets class , the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong .
Where an impairment loss on a revalued asset is identified , this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset .
f )
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 settled within one year have been measured at the amounts expected to be paid when the liability is settled . Employee benefits payable later than one year 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 not satisfy vesting requirements . Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows .
Contributions are made by the entity to an employee superannuation fund and are charged as expenses when incurred .
g )
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand , deposits held at-call with banks , other short-term highly liquid investments with original maturities of three months or less , and bank overdrafts . Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position .
h ) 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 statement of financial position are shown inclusive of GST .
Cash flows are presented in the statement of cash flows on a gross basis , except for the GST component of investing and financing activities , which are disclosed as operating cash flows .
i )
Income Tax
No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997 .
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