e )
Impairment of Non Financial Assets continued
BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013
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 entity ’ 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 satisfy vesting requirements . Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows .
Contributions are made by the entity to an employee superannuation fund and are charged as expenses when incurred .
g )
Cash and cash equivalents
Cash and cash equivalents include cash on hand , deposits held at-call with banks , other short-term highly liquid investments with original maturities of three months or less , and bank overdrafts .
h ) Goods and Services Tax ( GST )
Revenues , expenses and assets are recognised net of the amount of GST , except where the amount of GST incurred is not recoverable from the Australian Taxation Office . In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense . Receivables and payables in the statement of financial position are shown inclusive of GST .
Cash flows are presented in the statement of cash flows on a gross basis , except for the GST component of investing and financing activities , which are disclosed as operating cash flows .
i )
Income Tax
No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997 .
j )
Intangibles Software
Software is recorded at cost . Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses . It has an estimated useful life of between one and five years . It is assessed annually for impairment .
Property
A property was donated to the Association in June 2011 . The property was donated subject to various conditions of use in relation to the running of a specific project , as such the property was considered to be treated and classified as an intangible asset with a finite life in accordance with AASB138 Intangible Assets . The property was recognised at cost which is deemed to be the fair value of the property at the time it was donated and is amortised over the period of the specific project deemed to be ten years .
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