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. |
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https://www.transparency.gov.au/annual-reports/army-and-air-force-canteen-service/reporting-year/2019-20-34