BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES ( Continued ) ( j ) Financial Instruments ( continued ) Impairment
At each reporting date , the association assesses whether there is objective evidence that a financial instrument has been impaired . In the case of available-for-sale financial instruments , a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen . Impairment losses for held-for-trading are recognized in the Income Statement . The impairment has been assessed and the impairment is due to the significant decline in the value of an investment of 19 %.
Derecognition
Financial assets are derecognised where the contractual right to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset . Financial liabilities are derecognised where the related obligations are either discharged , cancelled or expire . The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid , including the transfer of non-cash assets or liabilities assumed , is recognised in profit or loss .
( k ) Impairment of Assets
At each reporting date , the association reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired . If such an indication exists , the recoverable amount of the asset , being the higher of the asset ’ s fair value less costs to sell and value in use , is compared to the asset ’ s carrying value . Any excess of the asset ’ s carrying value over its recoverable amount is expensed to the income statement . Where it is not possible to estimate the recoverable amount of an individual asset , the association estimates the recoverable amount of the cash-generating unit to which the asset belongs .
( l ) Intangibles
Software
The accounting policy relating to software is to write off custom developed software to the income statement as an expense in the year that the cost is incurred and to carry at cost less the accumulated amortisation over its finite life software acquired from third parties . Third party software is also assessed annually for impairment .
( m ) Provisions
Provisions are recognised when the association has a legal or constructive obligation , as a result of past events , for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured .
( n ) Comparative Figures
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year .
( o ) Key Estimates and Judgements
( i ) Impairment
The association assesses impairment at each reporting date by evaluating conditions specific to the association that may lead to impairment of assets . Where an impairment trigger exists , the recoverable amount of the asset is determined . Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates . Refer to the key estimates and assumptions as described in Note 9 for Property , Plant and Equipment .
( ii ) Provision for impairment of receivables This provision relates to potential bad debts as at 30 June 2009 .
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