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Note 5 Financial Position

Note 5A: Cash and cash equivalents

2020

2019

$

$

Cash on hand or on deposit

7,595,613

5,910,919

Total cash and cash equivalents

7,595,613

5,910,919

Accounting Policy

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand;

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily

convertible to known amounts of cash and subject to insignificant risk of changes in value; and

c) cash in special accounts.

Note 5B: Trade and other receivables

2020

2019

Goods and services receivables

$

$

Goods and services

346,110

639,044

Total goods and services receivables

346,110

639,044

Total trade and other receivables (gross)

346,110

639,044

Less impairment loss allowance

(23,608)

(25,769)

Total trade and other receivables (net)

322,502

613,275

Accounting Policy

Financial assets

Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

Note 5C: Reconciliation of the Opening and Closing Balances of Leasehold Improvements, Plant and Equipment, Computer Hardware and Computer Software

Leasehold

Plant &

Computer

Computer

Work

improvements

equipment

hardware

software

In Progress

Total

$

$

$

$

$

$

As at 1 July 2019

Gross book value

3,071,977

4,507,620

1,201,567

1,061,927

539,635

10,382,726

Accumulated depreciation and impairment

(1,185,674)

(2,703,966)

(956,668)

(707,528)

-

(5,553,837)

Total as at 1 July 2019

1,886,302

1,803,654

244,899

354,399

539,635

4,828,889

Recognition of right of use asset on initial application of AASB 16

70,060

70,060

Adjusted total as at 1 July 2019

1,886,302

1,873,714

244,899

354,399

539,635

4,898,949

Additions

By purchase

661,929

128,502

270,849

13,554

-

1,074,836

Right-of-use assets

-

Impairments recognised in net cost of services

-

-

-

-

-

-

Depreciation and Amortisation expense

(363,027)

(355,098)

(149,830)

(166,844)

-

(1,034,799)

Depreciation on right-of-use assets

(31,362)

(31,362)

Other movements

(327,980)

(327,980)

Disposals

-

Other

18,940

(29,360)

(14,521)

-

(24,940)

Total as at 30 June 2020

2,204,144

1,586,396

351,398

201,110

211,655

4,554,703

Gross book value

3,713,855

4,436,867

1,028,397

1,036,466

211,655

10,427,240

Accumulated depreciation and impairment

(1,509,711)

(2,850,471)

(677,000)

(835,357)

-

(5,872,538)

Total as at 30 June 2020

2,204,144

1,586,396

351,398

201,110

211,655

4,554,703

Carrying amount of right-of-use assets

-

38,698

-

-

-

38,698

- No items of plant and equipment are expected to be sold or disposed of within the next 12 months.

- No indicators of impairment were found for plant and equipment

- The carrying amount of computer software included $201,110 purchased software.

- No leasehold improvements are expected to be disposed of within the next 12 months.

Revaluations of non-financial assets

- All revaluations were conducted in accordance with the revaluation policy stated at Note 6A.

- During 2016 - 2017 an independent valuer conducted revaluations.

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.


Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Revaluations

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair value at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market value for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the entity using, in all cases the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2020

2019

Leasehold

Leasehold

Leasehold

Improvements

10 years

10 years

Plant and Equipment

3 to 10 years

3 to 10 years

Computer Hardware

3 to 5 years

3 to 5 years

Impairment
All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated, and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.


The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

De-recognition
An item of property, plant and equipment is derecognised upon disposal or when no further
economic benefits are expected from its use or disposal.


Intangibles
The entity’s intangibles comprise software purchased for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.


Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the entity’s software are 2 to 3 years (2019: 2 to 3 years).

All software assets were assessed for indications of impairment as at 30 June 2020.


Assets acquired at no cost, or for nominal consideration are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of
restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s
accounts immediately prior to the restructuring.

2020

2019

Note 5D: Inventories

$

$

Inventories held for sale

Finished goods

1,790,717

1,868,230

Total inventories held for sale

1,790,717

1,868,230

Total inventories

1,790,717

1,868,230

During 2020, nil inventory held for sale was recognised as an expense (2019: nil).

No items of inventory are recognised at fair value less cost to sell.

All inventories are expected to be sold in the next 12 months.

Accounting Policy

Inventories held for sale are valued at the lower of cost and net realisable value. Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

a) raw materials and stores - purchase cost on a first-in-first-out basis; and

b) finished goods - cost of direct materials and labour plus attributable costs that can be

allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

2020

2019

Note 5E: Other non-financial assets

$

$

Accrued Income

408,370

198,540

Prepayments

44,104

70,747

Total other non-financial assets

452,474

269,287

Other non-financial assets expected to be recovered

No more than 12 months

452,474

269,287

More than 12 months

-

-

Total other non-financial assets

452,474

269,287

No indicators of impairment were found for other non-financial assets.