FINANCIAL REPORT
The right-of-use assets comprise the initial measurement of the corresponding lease liability , lease payments made at or before the commencement day , less any lease incentives received and any initial direct costs . They are subsequently measured at cost less accumulated depreciation and impairment losses .
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset . If a lease transfers ownership of the underlying asset or the cost of the right-ofuse asset reflects that the Company expects to exercise a purchase option , the related right-ofuse asset is depreciated over the useful life of the underlying asset . The depreciation starts at the commencement date of the lease .
The right-of-use assets are presented as a separate line in the Consolidated Statement of Financial Position .
The Company applies AASB 136 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘ Property , Plant and Equipment ’ policy .
For the concessionary leases , the Company applies the option under AASB 2018-8 to measure the right-of-use-assets at cost on initial recognition .
g ) Revenue recognition The Company recognises income from its main revenue / income streams , as listed below :
• Government grants
• Donations
• Capital grants
• Parent fees
Government grants and donations When the Company receives government grants , donations and bequests that are in the scope of AASB 1058 ( being a transaction where the consideration paid to acquire an asset is significantly less than fair value principally to enable the Company to further its objectives ), it performs an assessment to determine if the contract is ‘ enforceable ’ and contains ‘ sufficiently specific ’ performance obligations .
In cases where there is an ‘ enforceable ’ contract with a customer with ‘ sufficiently specific ’ performance obligations , the transaction is accounted for under AASB 15 where income is recognised when ( or as ) the performance obligations are satisfied .
In all other cases ( where the contract is not ‘ enforceable ’ or the performance obligations are not ‘ sufficiently specific ’), the transaction is accounted for under AASB 1058 where the Company :
• Recognises the asset in accordance with the requirements of other relevant applicable Australian Accounting Standards ( e . g ., AASB 9 , AASB 16 , AASB 116 and AASB 138 )
• Considers whether any other financial statement elements should be recognised (‘ related amounts ’) in accordance with the relevant applicable Australian Accounting Standard including : - contributions by owners ( AASB 1004 ) - a lease liability ( AASB 16 ) - a financial instrument ( AASB 9 ) - a provision ( AASB 137 )
• Recognises income immediately in profit or loss for the excess of the initial carrying amount of the asset over any related amounts recognised .
Capital grants For capital grants received under an enforceable agreement where it includes a transfer to enable the Company to acquire or construct a recognisable non-financial asset to identified specifications which will be controlled by the Company when completed , the Company recognises a liability for the excess of the fair value of the transfer over any related amounts recognised and recognises income as it satisfies its obligations under the transfer .
h ) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits . Cash equivalents are short-term , highly liquid investments with original maturities of three months or less and which are subject to an insignificant risk of changes in value .
17