2.1 Statement of compliance
The financial statements are a general purpose financial report prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements (including the Australian Accounting Interpretations) adopted by the Australian Accounting Standards Board (AASB) that apply for the reporting period, the Australian Charities and Not-for-profit Commission Act 2012 and the Corporations Act 2001.
AITSL has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current reporting period. These have not had a material impact on the financial statements. New or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The financial statements have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets, which as noted, are valued at fair value. The financial statements are presented in Australian dollars.
The financial report was approved and authorised for issue by the Board of Directors on 25 August 2020.
2.2 Economic dependency
AITSL is dependent on the Department of Education, Skills and Employment (DESE) for the majority of the revenue used to carry out its ordinary activities. At the date of this report the Board of Directors has no reason to believe that DESE will not continue to support AITSL.
2.3 Use of estimates and judgments
The preparation of financial statements in conformity with Australian Accounting Standards required management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these assumptions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which estimates are revised and in any future period affected.
No estimate or judgment has made a significant impact on the amounts recorded in the financial statements. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities in the next reporting period.