Page 29 - AHEIA Annual Report

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2016
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of Preparation of the Financial Statements
The nancial statements are general purpose nancial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose nancial statements, the Australian Higher Education Industrial Association is a not-for-pro t entity.
The nancial statements have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the e ect of changing prices on the results or the nancial position. The nancial statements are presented in Australian dollars.
1.2 Comparative amounts
When required by Accounting Standards, comparative gures have been adjusted to conform to changes in presentation for the current nancial year.
1.3 New Australian Accounting Standards
Adoption of New Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date stated in the standard.
The accounting policies adopted are consistent with those of the previous nancial year.
Certain new Australian accounting standards and interpretations have been published that are not mandatory for 31 December 2016 reporting period. As at 31 December 2016, the following standards and interpretations had been issued but were not mandatory for the reporting ended 31 December 2016. The Association has not and does not intend to adopt these standards early. In addition to those Accounting Standards listed above, the AASB has also released a number of other Accounting Standards and Australian Interpretations.
Standard/ Interpretation
Summary
Application for reporting periods beginning on:
Impact on Financial Report
AASB 9 Financial Instruments and its consequential amendments
The key changes with this standard include the simpli ed requirements for the classi cation and measurement
of nancial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.
Beginning 1 January 2018
The Association will adopt this standard from
1 January 2018 but the impact of its adoption is yet to be assessed.
AASB 16 Leases
This amending standard will eliminate the classi cations of operating
leases and nance leases. Subject to exceptions, the standard will require a right of use asset to be capitalised in the statement of nancial position. A liability corresponding to the capitalised lease will also be recognised.
Beginning 1 January 2019
The Association will adopt this standard from
1 January 2019 but the impact of its adoption is yet to be assessed.
The application of these Accounting Standards and Australian Interpretations are also not expected to have any signi cant impact on the Association’s nancial statements. Consequently, they have not been speci cally identi ed above.
AHEIA Annual Report 2016 29