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 .
b ) Intangible assets Intangible Assets comprise software assets . The estimated useful lives used to calculate amortisation are between 3-8 years .
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 REPORT
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