FINANCIALS 2019
4.1 Employee entitlements
Management judgement is applied in determining
the following key assumptions used in the calculation
of long service leave at balance date:
• future increases in wages and salaries;
• future on-cost rates; and
• experience of employee departures and period of
service including future years in which long service
leave is expected to be taken.
4.2 Leasehold improvements
As described at 3(a) above, the Company reviews
the estimated useful lives of property, plant and
equipment at the end of each reporting period.
4.3 Impairment
In assessing impairment, the Company estimates
the recoverable amount of each asset based on the
depreciable replacement cost in accordance with
AASB 136 Impairment of assets.
4.4 Impairment of trade and other receivables
The Company has applied the simplified approach
to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the
expected credit losses, trade receivables have been
grouped based on days overdue. The amount of
expected credit losses is updated at each reporting
date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
4.5 Make good provision
Provisions for make good are included, where
applicable, using the present value of anticipated
costs for future restoration of leased premises. The
provision includes future cost estimates associated
with closure of the premises.
4.6 Revenue recognition
To determine if a grant contract should be accounted
for under AASB 1058 or AASB 15, the Company
has to determine if the contract is ‘enforceable’
and contains ‘sufficiently specific’ performance
obligations. When assessing if the performance
obligations are ‘sufficiently specific’, the Company
has applied significant judgement in this regard
by performing a detailed analysis of the terms and
conditions contained in the grant contracts, review
of accompanying documentation (e.g. activity work
plans) and holding discussions with relevant parties.
Income recognition from grants received by the
Company have been appropriately accounted
for under AASB 1058 or AASB 15 based on the
assessment performed.
Determining the timing of satisfaction of
performance obligations (and therefore whether
to use an output or input method to recognise
revenue over time) required particular judgement
in the case of grant contracts not directly linked to
enrolment numbers. In most cases the best measure
of performance obligations being satisfied was
determined to be the input method. As such revenue
is recognised on these types of contracts as costs
are incurred as this was determined to be the most
accurate measure of satisfaction of performance
obligations.
4.7 Leases (Company as a lessee)
Concessionary leases
The Company leases various buildings from local
councils with significantly below-market terms and
conditions principally to enable it to further its objectives.
The Company is dependent on these leases to
further its objectives as it utilises the buildings to run
its operations to deliver its services. The lease terms
range from 1 year and the lease payments range
from $100 payable annually.
As outlined in the Company’s accounting policy in
Note 3, the Company has elected to measure these
leases at cost.
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