FINANCIALS 2018
The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimate is revised if the revision
affects only that period or in the period of the
revision and future periods if the revision affects
both current and future periods.
The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at reporting date, taking into
account the risks and uncertainties surrounding the
obligation. Where a provision is measured using
the cash flows estimated to settle the present
obligation, its carrying amount is the present value
of those cash flows.
The following are the critical judgements that
management has made in the process of applying
the Company’s accounting policies and that have the
most significant effect on the amounts recognised in
the consolidated financial statements:
When some or all of the economic benefits
required to settle a provision are expected to be
recovered from a third party, the receivable is
recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of
the receivable can be measured reliably.
4.1 Employee entitlements
Management judgement is applied in determining
the following key assumptions used in the calculation
of long service leave at balance date:
• future increases in wages and salaries;
• future on-cost rates; and
• experience of employee departures and period of
service including future years in which long service
leave is expected to be taken.
p) Unearned income
The liability for unearned income is the unutilised
amounts of grants received on the condition that
specified services are delivered or conditions are
fulfilled. The services are usually provided or the
conditions usually fulfilled within 12 months of
receipt of the grant. Where the amount received is
in respect of services to be provided over a period
that exceeds 12 months after the reporting date
or the conditions will only be satisfied more than
12 months after the reporting date, the liability is
discounted and presented as non-current.
4.2 Leasehold improvements
As described at 3(a) above, the Company reviews
the estimated useful lives of property, plant and
equipment at the end of each reporting period.
4.3 Impairment
In assessing impairment, the Company estimates
the recoverable amount of each asset based on the
depreciable replacement cost in accordance with
AASB 136 Impairment of assets.
q) Comparatives
Comparatives have been realigned where
necessary, to agree with current year presentation.
There was no change in the profit or net assets.
4.4 Impairment of trade and other receivables
The Company has applied the simplified approach
to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the
expected credit losses, trade receivables have been
grouped based on days overdue. The amount of
expected credit losses is updated at each reporting
date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
4. Critical accounting judgements and
key sources of estimation uncertainty
The preparation of financial statements requires
management to make judgements, estimates and
assumptions that affect the application of policies
and reported amounts of assets, liabilities, income
and expenses. The estimates and associated
assumptions are based on historical experience
and other various factors that are believed to be
reasonable under the circumstances, the results of
which form the basis of making the judgements.
Actual results may differ from these estimates.
4.5 Make good provision
Provisions for make good are included, where
applicable, using the present value of anticipated
costs for future restoration of leased premises. The
provision includes future cost estimates associated
with closure of the premises.
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