g )
Impairment of Non Financial Assets
BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
At the end of each reporting period , the Association 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 profit or loss .
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 Association 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 Association 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 .
h )
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 longterm 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 high quality corporate 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 .
i )
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 .
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