Berry Street Web Docs Financial Report 2010 | Page 14

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010

j)

Intangibles

Software
Software is recorded at cost. Software has a finite life and is carried at cost less any accumulated
amortisation and impairment losses. It has an estimated useful life of between one and three years. It is
assessed annually for impairment.

k)

Provisions

Provisions are recognised when the entity 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.
Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end
of the reporting period.

l)

Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with changes in
presentation for the current financial year.
When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies
items in its financial statements, a statement of financial position as at the beginning of the earliest
comparative period must be disclosed.
m)

Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
services received by the company during the reporting period which remain unpaid. The balance is
recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

n)

Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the entity.

Key Estimates
Impairment
The freehold land and buildings were independently valued in 2007-2008 by Goulburn Valley Property
Services, Burnham Corporation and CJA Lee & Associations. The valuation was based on the fair value less
cost to sell. The critical assumptions adopted in determining the valuation included the location of the land
and buildings, the current strong demand for land and buildings in the area and recent sales data for similar
properties. The valuation resulted in a revaluation increment of $2,543,183 being recognised for the year
ended 30 June 2008.
At 30 June 2010 the directors reviewed the key assumptions made by the valuers at 30 June 2008. They
have concluded that these assumptions remain materially unchanged, and are satisfied that carrying value
does not exceed the recoverable amount of land and buildings at 30 June 2010.

12