FINANCIALS 2019
Basis of preparation
The financial report has been prepared on the basis
of historical cost, except for the revaluation of certain
financial instruments. Cost is based on the fair values
of the consideration given in exchange for assets. All
amounts are presented in Australian dollars. The following
significant accounting policies have been adopted in the
preparation and presentation of the financial report:
2.2 New and revised Australian Accounting
Standards in issue but not yet effective
At the date of authorisation of the financial
statements, the Company has not applied the
following new and revised Australian Accounting
Standards, Interpretations and amendments that
have been issued but are not yet effective:
Effective for annual reporting periods on or after
1 January 2020
Standard/amendment
AASB 2019-4 Amerndments to Australian
Accounting Standards - Disclosure in Special
Purpose Financial Statements of Not-for-Profit
Private Sector Entities on Compliance with
Recognition and Measurement Requirements
The following Standards and Interpretations should
be added to the list above if they are deemed to be
relevant for the entity:
Effective for annual reporting periods on or after
1 January 2020
Standard/amendment
AASB 1059 Service Concession Arrangements: Grantors
AASB 2019-2 Amendments to Australian Accounting
Standards - Implementation of AASB 1059
3. Summary of Accounting Policies
Statement of compliance
The financial report is a general purpose financial
report which has been prepared in accordance with
Division 60 of the Australian Charities and Notfor-Profits
Commission Act 2012, and Australian
Accounting Standards – Reduced Disclosure
Requirements and complies with other requirements
of the law.
A statement of compliance with IFRS cannot be
made due to the application of Not-for-Profit sector
specific requirements contained in the Australian
Accounting Standards.
a) Property, plant and equipment
Land and buildings, leasehold improvements,
furniture and office equipment, motor vehicles and
computers are stated at cost less accumulated
depreciation and impairment. Cost includes
expenditure that is directly attributable to
the acquisition of the item. In the event that
settlement of all or part of the purchase
consideration is deferred, cost is determined by
discounting the amounts payable in the future to
their present value as at the date of acquisition.
Depreciation is provided on furniture and office
equipment, motor vehicles and computers, including
freehold and leasehold buildings but excluding land.
Depreciation is calculated on a straight line basis
so as to write off the net cost of each asset over its
expected useful life to its estimated residual value.
The estimated useful lives, residual values and
depreciation method are reviewed at the end of
each annual reporting period.
The useful life of an asset is determined by
Management in line with guidelines as specified in
AASB 16 Property, Plant and Equipment. The below
estimates of useful life per class of asset are provided
as a guide only. The actual estimation and application
of the useful life and salvage value of the asset is a
reasonable judgement made by Management based
on the experience of the entity with similar assets.
The following estimated useful lives are used
as a guide in the calculation of depreciation:
• Buildings owned: 33-50 years
• Buildings fixtures and fittings: 5-14 years
• Leasehold improvements: lease term or 10 years
• Furniture and fittings: 5-10 years
• Computers and hardware: 3-5 years
• Motor vehicles: 8-10 years
The Company reviews its estimate of the useful lives
of leasehold improvements at each reporting date,
based on the period over which an asset is expected
to be available for use by the Company. Land is
carried at cost and is not depreciated.
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