Page 24 - CGC_Annual_Report_2014
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Annual Report 2013-2014
Financial Report for the Year Ended 31 August 2014
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
e. Employee Benefits
Provision is made for the association’s liability for employee benefits arising from
services rendered by employees to the end of the reporting period. Employee
benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled. Employee benefits
payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits. In determining the
liability, consideration is given to employee wage increases and the probability that
the employee may not satisfy vesting requirements. Those cash outflows are
discounted using market yields on national government bonds with terms to
maturity that match the expected timing of cash flows.
No provision is made for sick leave as there is no liability to pay for the benefits
accrued and the sick leave to be taken in future reporting periods is not expected to
be more than the benefits accruing in those periods.
f. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at-call with banks
which are readily convertible to cash on hand.
g. Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable
after taking into account any trade discounts and volume rebates allowed. Any
consideration deferred is treated as the provision of finance and is discounted at a
rate of interest that is generally accepted in the market for similar arrangements.
The difference between the amount initially recognised and the amount ultimately
received is interest revenue.
Revenue from the sale of goods is recognised at the point of delivery as this
corresponds to the transfer of significant risks and rewards of ownership of the
goods and the cessation of all involvement in those goods.
Interest revenue is recognised using the effective interest rate method, which for
floating rate financial assets is the rate inherent in the instrument.
Revenue from the provision of membership subscriptions is recognised on a straight
line basis over the financial year.
All revenue is stated net of the amount of goods and services tax (GST).
h. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except
where the amount of GST incurred is not recoverable from the Australian Taxation
Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. The net amount of GST
recoverable from, or payable to, the ATO is included as part of receivables or
payables in the statement of financial position.
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Financial Report for the Year Ended 31 August 2014
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2014
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
e. Employee Benefits
Provision is made for the association’s liability for employee benefits arising from
services rendered by employees to the end of the reporting period. Employee
benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled. Employee benefits
payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits. In determining the
liability, consideration is given to employee wage increases and the probability that
the employee may not satisfy vesting requirements. Those cash outflows are
discounted using market yields on national government bonds with terms to
maturity that match the expected timing of cash flows.
No provision is made for sick leave as there is no liability to pay for the benefits
accrued and the sick leave to be taken in future reporting periods is not expected to
be more than the benefits accruing in those periods.
f. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at-call with banks
which are readily convertible to cash on hand.
g. Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable
after taking into account any trade discounts and volume rebates allowed. Any
consideration deferred is treated as the provision of finance and is discounted at a
rate of interest that is generally accepted in the market for similar arrangements.
The difference between the amount initially recognised and the amount ultimately
received is interest revenue.
Revenue from the sale of goods is recognised at the point of delivery as this
corresponds to the transfer of significant risks and rewards of ownership of the
goods and the cessation of all involvement in those goods.
Interest revenue is recognised using the effective interest rate method, which for
floating rate financial assets is the rate inherent in the instrument.
Revenue from the provision of membership subscriptions is recognised on a straight
line basis over the financial year.
All revenue is stated net of the amount of goods and services tax (GST).
h. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except
where the amount of GST incurred is not recoverable from the Australian Taxation
Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. The net amount of GST
recoverable from, or payable to, the ATO is included as part of receivables or
payables in the statement of financial position.
6_0700 Page 7 of 22
