Notes to and forming part of the Financial Statements For the Year Ended 31 December 2011 - Continued
employees up to the reporting
activities, which is recoverable
major inspection is performed,
date using the projected unit
from, or payable to, the taxation
its cost is recognised in the
credit method.
authority is classified as part of
carrying amount of the plant and
operating cash flows.
equipment as a replacement
Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Contributions are made by the economic entity to an employee superannuation fund and are charged as expenses when incurred. (e) Goods and Services tax (GST) Revenues, expenses and assets are recognised net of the
only if it is eligible for
(f) Income Tax: The Company has been granted charity status by the Australian Taxation Office as per section 50-145 of the Income Tax Assessment Act 1997. Therefore the entity is exempt from income tax and accordingly no provision has been made for income tax expense.
capitalisation. All other repairs and maintenance are recognised in profit or loss as incurred. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows: - Leasehold improvements Over 6 to 10 years - Plant and equipment
(g) Cash Cash and cash equivalents
Over 4 to 5 years
in the statement of financial
The assets’ residual values,
position comprise cash at
useful lives and amortisation
bank and in hand and short-
methods are reviewed, and
a purchase of goods and
term deposits with an original
adjusted if appropriate, at each
services is not recoverable
maturity of three months or
financial year end.
from the taxation authority,
less that are readily convertible
in which case the GST is
to known amounts of cash
recognised as part of the cost
and which are subject to an
of acquisition of the asset or
insignificant risk of changes
as part of the expense item
in value.
amount of GST except: - When the GST incurred on
as applicable; and - Receivables and payables, which are stated with the amount of GST included. The net amount of GST
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with the
recoverable from, or payable
(h) Plant and Equipment
carrying amount. These are
to, the taxation authority is
Property, plant and equipment
included in the statement of
included as part of receivables
is stated at historical costs less
comprehensive income.
or payables in the statement of
accumulated depreciation and
financial position.
any accumulated impairment
Cash flows are included in
losses. Such cost includes the
the statement of cash flows
cost of replacing parts that are
on the gross basis and the GST
eligible for capitalisation when
component of cash flows arising
the cost of replacing the parts
from investigating and financing
is incurred. Similarly, when each 50
(i) Provision Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of