Berry Street Web Docs Financial Report 2016 | Page 10

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
e)

Financial Instruments (continued)

(iii) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not capable of being
classified into other categories of financial assets due to their nature, or they are designated as such by
management. Such assets are subsequently measured at fair value with changes in carrying value being
included in other comprehensive income .
Available-for-sale financial assets are included in non-current assets, except for those which are expected
to be disposed of within 12 months after the end of the reporting period.
(iv) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost.

Impairment
At the end of each reporting period, the Association assesses whether there is objective evidence that a financial
asset has been impaired. In the case of available-for-sale financial assets, a significant or prolonged decline in
the value of the asset is considered to determine whether an impairment has arisen. Impairment losses are
recognised in profit or loss.

Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks
and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are
either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which
is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of
non-cash assets or liabilities assumed, is recognised in profit or loss.

f)

Fair Value of Assets and Liabilities

The Association measures some of its assets at fair value on a recurring basis, consistent with the requirements
of the applicable accounting standard.
‘Fair value’ is the price the Association would receive to sell an asset in an orderly (i.e. unforced) transaction
between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of the
specific asset. The fair values of assets that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data.
To the extent possible, market information is extracted from the principal market for the asset (i.e., the market
with the greatest volume and level of activity for the asset). In the absence of such a market, market information
is extracted from the most advantageous market available to the entity at reporting date (i.e., the market that
maximises the receipts from the sale of the asset, after taking into account transaction costs and transport costs)
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use
the asset in its highest and best use or to sell it to another market participant that would use the asset in its
highest and best use.

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