Page 80 - BWA Annual Report 2020 W

WESTERN AUSTRALIAN BASKETBALL FEDERATION INC.
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2020
d. Employee Benefits
Provision is made for the Association’s liability for employee’s benefits arising from services rendered by employees to the balance sheet date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.
e. Cash
For the purposes of the statement of cash flows, cash includes deposits at call which are readily convertible to cash on hand and which are used in the cash management function on a day-to- day basis, net of outstanding overdrafts.
f. Financial Instruments Recognition
Financial instruments are initially measured at fair value on initial recognition, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.
Other Financial assets and liabilities
The Association’s financial instruments comprise of cash, trade and other receivables and trade and other payables. Trade receivables are measured at amortized cost, less any impairment losses (refer to Note 1(g) for accounting policy on impairment of financial assets) when they solely comprise payments of principal and interest and managed solely to collect cashflows. Trade payables are also measured at amortized cost. Refer to Note 1(e) of this financial report for accounting policies regarding cash.
g. Impairment
Non-derivative financial assets
Trade and other receivables
The Association has a forward-looking Expected Credit Loss (ECL) model which considers historic, current and forward-looking information (including macro-economic data) to estimate impairment losses when material.
h. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cashflow statement on a gross basis, except for the GST
component of investing and financing activities, which are disclosed as operating cash flows.
73 | BWA ANNUAL REPORT 2020