2. Summary of Accounting Policies (continued)
b) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave and rostered days off when it is probable that settlement will be required and they are capable of
being measured reliably.
Liabilities recognised in respect of employee benefits expected to be settled within 12 months are measured using
the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee
benefits which are not expected to be settled within 12 months are measured as the present value of the estimated
future cash outflows to be made by the Company in respect of services provided by employees up to reporting date.
The Company pays contributions to certain defined contribution plans. Contributions are recognised in profit or loss in
the periods during which services are rendered by employees.
c) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the
cost of acquisition of an asset or as part of an item of expense; or
ii) for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified
as operating cash flows.
d) Financial assets
All financial assets are initially stated at cost, being the fair value of consideration given plus acquisition costs.
Purchases and sales of financial assets are recognised on trade date which is the date on which the Company
commits to purchase or sell the asset. Accounting policies for each category of financial assets subsequent to
initial recognition are set out below:
Loans and receivables
Trade receivables, loans, and other receivables are recorded at amortised cost using the effective interest rate
method less impairment. Impairment losses are measured as the difference between the investment’s carrying
amount and the present value of estimated future cash flows, excluding future credit losses that have not been
incurred. The cash flows are discounted at the investment’s original effective interest rate. Impairment losses are
recognised in profit or loss.
Available-for-sale financial assets
Available-for-sale investments are those financial assets that are designated as available-for-sale. When available-
for-sale financial investments are recognised initially, they are measured at fair value. Any available-for-sale
financial investments donated to the Company are recognised at fair value at the date the Company obtains
control of the asset.
After initial recognition available-for-sale financial investments are measured at fair value with gains or losses
being recognised in other comprehensive income until the investment is d