Berry Street Web Docs Financial Report 2013 | Page 13

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
k)

Provisions

Provisions are recognised when the entity 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.
Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end
of the reporting period.

l)

Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with changes in
presentation for the current financial year.
When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies
items in its financial statements, a statement of financial position as at the beginning of the earliest
comparative period must be disclosed.

m)

Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
services received by the entity during the reporting period which remain unpaid. The balance is recognised as
a current liability with the amounts normally paid within 30 days of recognition of the liability.

n) Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the entity.

Key Estimates
Impairment
The freehold land and buildings were independently valued in 2011-2012 by Goulburn Valley Property
Services, Burnham Corporation and CJA Lee & Associations. The valuation was based on the fair value less
cost to sell. The critical assumptions adopted in determining the valuation included the location of the land
and buildings, the current strong demand for land and buildings in the area and recent sales data for similar
properties. The valuation resulted in a net revaluation increment of $197,012 being recognised for the year
ended 30 June 2012.

Key Judgments
Available-for-sale investments
The association maintains a portfolio of securities with a carrying value of $18,850,058 (2012: $11,839,227) at
the end of the reporting period. The fair value of the portfolio of securities is monitored on a monthly basis.
The board of directors does not believe there has been a significant or prolonged decline in the cost and
hence no impairment has been recognised.

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.

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