Berry Street Web Docs Financial Report 2014 | Page 13

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2014
g)

Employee Benefits

Short-term provisions
Provision is made for the Association’s obligation for short-term employee benefits. Short-term employee
benefits are provisions (other than termination benefits) that are expected to be settled wholly within 12
months after the end of the annual reporting period in which the employees render the related service,
including wages, salaries and sick leave. Short-term provisions are measured at the (undiscounted) amounts
expected to be paid when the obligation is settled.
The Association’s obligations for short-term employee benefits such as wages, salaries and sick leave are
recognised as a part of current trade and other payables in the statement of financial position.
Long-term employee benefits
The Association classifies employees’ long service leave and annual leave entitlements as provisions for
long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of
the annual reporting period in which the employees render the related service. Provision is made for the
Association’s obligation for other long-term employee benefits, which is measured at the present value of the
expected future payments to be made to employees. Expected future payments incorporate anticipated future
wage and salary levels, durations of service and employee departures and are discounted at rates
determined by reference to market yields at the end of the reporting period on government bonds that have
maturity dates that approximate the terms of the obligations. Upon the subsequent measurement of
obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or
loss classified under employee benefit expense.
The Association’s obligations for long-term employee benefits are presented as non-current liabilities in its
statement of financial position, except where the Association does not have an unconditional right to defer
settlement for at least twelve months after the reporting date, in which case the obligations are presented as
current liabilities.

h)

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.

i)

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.
j)

Income Tax

No provision for income tax has been raised as the Association is exempt from income tax under Division 50
of the of the Income Tax Assessment Act 1997.

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