p ) Critical Accounting Estimates and Judgments
BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
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 Association .
Key Estimates Impairment
The freehold land and buildings were independently valued in 2014-2015 by Goulburn Valley Property Services , Burnham Corporation , Leader Property Practice and CJA Lee & Associates . The valuations were 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 valuations resulted in a net revaluation increment of $ 325,731 being recognised for the year ended 30 June 2015 .
Key Judgments Available-for-sale investments
The Association maintains a portfolio of securities with a carrying value of $ 33,315,941 ( 2015 : $ 28,235,200 ) 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 do not believe there has been a significant or prolonged decline in the value and hence no impairment has been recognised .
( q ) Economic Dependence
The Association is dependent on the Department of Health & 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 the Association .
( r ) Business combinations Business combinations occur where an acquirer obtains control over one or more businesses .
A business combination is accounted for by applying the acquisition method , unless it is a combination involving entities or businesses under common control . The business combination will be accounted for from the date that control is attained , whereby the fair value of the identifiable assets acquired and liabilities ( including contingent liabilities ) assumed is recognised ( subject to certain limited exceptions ).
All transaction costs incurred in relation to business combinations are recognised as expenses in profit or loss when incurred .
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase .
Goodwill is recognised as an asset and carried at cost less any accumulated impairment losses recognised in accordance with AASB 136 : Impairment of Assets . Any gain from a bargain purchase is recognised in profit or loss in the period in which the business was acquired .
( s ) Non-current assets classified as held for sale
Non-current assets ( and disposal groups ) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell . Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use . This condition is regarded as met only when the sale is highly probable and the asset ( or disposal group ) is available for immediate sale in its present condition . Management must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification .
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