Berry Street Web Docs Financial Report 2011 | Page 12

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011

e)

Impairment of Assets

At the end of each reporting period, the entity 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 statement of comprehensive income.
Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to
generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future
economic benefits, value in use is determined as the depreciated replacement cost of an asset.
Where it is not possible to estimate the recoverable amount of an assets class, the entity estimates the
recoverable amount of the cash-generating unit to which the class of assets belong.
Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in
respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the
revaluation surplus for that same class of asset.
f)

Employee Benefits

Provision is made for the association’s liability for employee benefits arising from services rendered by
employees to the end of the reporting period. Employee benefits that are expected to be settled within one
year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits
payable later than one year have been measured at the present value of the estimated future cash outflows to
be made for those benefits. In determining the liability, consideration is given to employee wage increases
and the probability that the employee may not