Page 30 - AHEIA Annual Report

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1.4 Revenue
Revenue is measured at the fair value of the consideration received or receivable.
Revenue from subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates.
Interest revenue is recognised on an accrual basis using the e ective interest method.
Revenue from conference and sponsorship income is accounted for on an accrual basis and is recorded as revenue in the year to which it relates.
1.5 Gains
Sale of assets
Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer.
1.6 Employee bene ts
A liability is recognised for bene ts accruing to employees in respect of wages and salaries, annual leave, long service leave and termination bene ts when it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities for short-term employee bene ts (as de ned in AASB 119 Employee Bene ts) and termination bene ts due within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long-term employee bene ts are measured as the present value of the estimated future cash out ows to be made by the Association in respect of services provided by employees up to reporting date.
Payments to de ned contribution retirement bene t plans are recognised as an expense when employees have rendered service entitling them to the contributions.
1.7 Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the ful lment of the arrangement is dependent on the use of a speci c asset or assets and the arrangement conveys a right to use the asset.
Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight-line basis. Lease incentives under operating leases are recognised as a liability and expensed on a straight line basis over the life of the lease term.
1.8 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insigni cant risk of changes in value and bank overdrafts. Bank overdrafts are
shown within short-term borrowings in current liabilities on the statement of nancial position.
1.9 Financial instruments
Financial assets and nancial liabilities are recognised when the Australian Higher Education Industrial Association becomes a party to the contractual provisions of the instrument.
Financial assets and nancial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of nancial assets and nancial liabilities (other than nancial assets and nancial liabilities at fair value through pro t or loss) are added to or deducted from the fair value of the nancial assets or nancial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of nancial assets or nancial liabilities at fair value through pro t or loss are recognised immediately in pro t or loss.
1.10 Financial assets
Financial assets are classi ed into the following speci ed categories: nancial assets at fair value through pro t or loss, held-to-maturity investments, and loans and receivables. The classi cation depends on the nature and purpose of
the nancial assets and is determined at the time of initial recognition. All regular way purchases or sales of nancial assets are recognised and derecognised upon trade date basis. Regular way purchases or sales are purchases or sales of nancial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
Fair value through pro t or loss
Financial assets are classi ed as at fair value through pro t or loss when the nancial asset is
either held for trading or it is designated as at fair value through pro t or loss.
A nancial asset is classi ed as held for trading if:
΅ it has been acquired principally for the purpose of selling it in the near term; or
΅ on initial recognition it is part of a portfolio of identi ed nancial instruments that the
΅ Association manages together and has a recent actual pattern of short-term pro t-taking; or
΅ it is a derivative that is not designated and e ective as a hedging instrument.
A nancial asset other than a nancial asset held for trading may be designated as at fair value through pro t or loss upon initial recognition if:
΅ such designation eliminates or signi cantly reduces a measurement or recognition inconsistency that would otherwise arise; or
΅ the nancial asset forms part of a group of nancial assets
or nancial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Association’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or
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AHEIA Annual Report 2016