BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
n ) Critical Accounting Estimates and Judgments ( continued )
Key Judgments Available-for-sale investments
The association maintains a portfolio of securities with a carrying value of $ 8,635,607 at the end of the reporting period . Certain individual investments have declined in value recently by up to 20 %. The Directors do not believe this decline constitutes a significant or prolonged decline below cost at this stage and hence no impairment has been recognised . Should share values decline to a level which is in excess of 20 % below cost or should prices remain at levels below cost for a period in excess of 9 months , the Directors have determined that such investments will be considered impaired in the future .
o )
Economic Dependence
Berry Street Victoria Incorporated is dependent on the Department of Human Services for the majority of its revenue used to operate the business . At the date of this report the Board of Directors has no reason to believe the Department will not continue to support Berry Street Victoria Incorporated .
p )
Adoption of New and Revised Accounting Standards
During the current year the association adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory .
The adoption of these standards has impacted the recognition , measurement and disclosure of certain transactions . The following is an explanation of the impact the adoption of these standards and interpretations has had on the financial statements of Berry Street Victoria Incorporated .
AASB 101 : Presentation of Financial Statements
In September 2007 the Australian Accounting Standards Board revised AASB 101 and as a result , there have been changes to the presentation and disclosure of certain information within the financial statements . Below is an overview of the key changes and the impact on the association ’ s financial statements .
Disclosure impact
Terminology changes — The revised version of AASB 101 contains a number of terminology changes , including the amendment of the names of the primary financial statements .
Reporting changes in equity — The revised AASB 101 requires all changes in equity arising from transactions with owners , in their capacity as owners , to be presented separately from non-owner changes in equity . Owner changes in equity are to be presented in the statement of changes in equity , with non-owner changes in equity presented in the statement of comprehensive income . The previous version of AASB 101 required that owner changes in equity and other comprehensive income be presented in the statement of changes in equity .
Statement of comprehensive income — The revised AASB 101 requires all income and expenses to be presented in either one statement , the statement of comprehensive income , or two statements , a separate income statement and a statement of comprehensive income . The previous version of AASB 101 required only the presentation of a single income statement .
The association ’ s financial statements now contain a statement of comprehensive income .
Other comprehensive income — The revised version of AASB 101 introduces the concept of ‘ other comprehensive income ’ which comprises of income and expenses that are not recognised in profit or loss as required by other Australian Accounting Standards . Items of other comprehensive income are to be disclosed in the statement of comprehensive income . Entities are required to disclose the income tax relating to each component of other comprehensive income . The previous version of AASB 101 did not contain an equivalent concept .
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