Notes to the Financial Statements (continued)

(c) Amortisation

Amortisation is provided for on a straight-line basis over the lease inducements paid. The periods are determined by the original lease agreement term.

(d) Stocks - legal forms & books

Stocks - legal forms & books inventories have been valued at the lower of cost, determined on a specific identification basis, or net realisable value after due allowance for damaged and obsolete stock.

(e) Debtors

Debtors are stated at their cost less an allowance for any uncollectible amounts.

(f) Income taxation

The Society is a not-for-profit organisation and is not liable for income tax on income relating to membership activities. The Society is subject to income tax on activities outside the circle of membership. The Society accounts for taxation using the taxes payable method. Deferred tax is not accounted for.

(g) Goods and services tax

The financial statements have been prepared on a GST exclusive basis except for debtors and trade creditors, which are shown inclusive of GST.

(h) Leases

The Society leases office equipment and premises. Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are recognised in the determination of the operating surplus in equal instalments over the lease term.

(i) Revenue

Membership levies are recognised over the period in which they are active. Sales of goods are recognised when they have been ordered and delivered to the customer. Sales of services are recognised on the date the service takes place. Interest income is recognised using the effective interest method. Rent income is recognised on a straight-line basis over the life of the lease.

(j) Financial instruments

Financial instruments include debtors, investments, creditors, cash balances and deposits. Financial instruments are stated in the statement of financial position when the entity becomes party to a financial contract. Debtors are stated at their cost less impairment losses. Investments are measured at fair market value of a quoted active market.

(k) Cash and equivalents

Cash and cash equivalents comprise cash on hand, cash in banks and cash deposits in banks.

(l) Long-term property maintenance reserve

The long-term property maintenance reserve was established to allow for major items of property maintenance. It is based on a 15-year long-term maintenance report prepared by Opus in 2015.

(m) Assets reviewed for impairment

Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of an asset is defined as the fair value less cost to sell.

(n) Change in accounting policies

There have been no changes in the accounting policies in the current period.