Page 72 - BWA 2021 ANNUAL REPORT

WESTERN AUSTRALIAN BASKETBALL FEDERATION INC.
Notes to the financial statements
for the year ended 31 December 2021
Note
1 Revenue and other income (cont.)
1.3.5 Revenue from Stadium/ Court Hire
The revenue from stadium or court hire is recognized at a point in time, when the courts have been used or invoiced, and unable to be cancelled.
1.3.6 Revenue from Administration, Affiliation and Referee Fees
The revenue from administration, affiliation and referee fees are recognized over time, as the customer consumes the benefits, being the referee services and administration of the competitions provided by the Association.
1.3.7 Revenue from Grants
Income from grants is recognised on receipt when the terms and conditions of the grant are not enforceable or sufficiently specific. Where the terms and conditions are enforceable and sufficiently specific, revenue is recognised as the Association fulfills the performance obligations under the grant.
a. The Association received government grants from the Australian Government's JobKeeper Payment and Cash Flow Boost schemes. There are no unfulfilled conditions or other contingencies attaching to these grants. Grants related to income are presented as part of profit or loss as other income.
1.3.8 Interest income
Interest revenue is recognised in accordance with note 3.1 Finance income and expenses.
2 Profit before income tax
Note
The following significant expense items are relevant in explaining the financial performance:
2.1 Employee benefits expense
◼ Wages and salaries
◼ Superannuation
◼ Employee leave entitlements
◼ Payroll tax and other taxes
◼ Other employment related costs
2.1.1 Accounting policy
2,228,208 230,663 265,232
72,405 25,025
2,821,533
2021 $
2020 $
2,315,706 255,550 234,047 142,798
-
2,948,101
a. Short-term benefits
Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees' services provided to the reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Association expects to pay at the reporting date including related on-costs, such as workers compensation insurance and payroll tax.
b. Other long-term benefits
The Association’s obligation in respect of long-term employee benefits other than defined benefit plans, such as long service leave, is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the Reserve Bank of Australia's cash rate at the report date that have maturity dates approximating the terms of the Association's obligations. Any actuarial gains or losses are recognised in profit or loss in the period in which they arise.
c. Retirement benefit obligations: Defined contribution superannuation funds
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions onto a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution superannuation funds are recognised as an expense in the income statement as incurred.
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