FINANCIALS 2019
3. Summary of Accounting Policies
(continued)
b) Intangible assets
Intangible assets comprise software assets.
The estimated useful lives used to calculate
amortisation are between 3-8 years.
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c) 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.
d) 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.
e) Financial Instruments
Financial assets and financial liabilities are
recognised in the Company’s Statement of
Financial Position when the Company becomes a
party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue
of financial assets and financial liabilities (other
than financial assets and financial liabilities at
fair value through profit or loss) are added to or
deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are
recognised immediately in profit or loss.
Financial assets - Initial recognition and
measurement
At initial recognition, financial assets are classified
and measured at fair value. Financial assets are
subsequently measured in their entirety at either
amortised cost or fair value, depending on the
classification of the financial assets.
The classification of the financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics.
Financial assets subsequently measured at
amortised cost
Debt instruments are measured subsequently at
amortised cost when the financial asset is held
within a business model whose objective is to
hold financial assets in order to collect contractual
cash flows and the contractual terms give rise to
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding (SPPI).
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