Notes to the Financial Statements (continued)

for the year ended 30 September 2019

(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. 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, 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.

(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.

(o) Reclassification of comparative numbers

There is a reclassification of comparative figures on the Statement of Financial Performance to better represent the financial results of the current year. The reclassification of the components has no impact on tax.