Page 81 - BWA Annual Report 2020 W

WESTERN AUSTRALIAN BASKETBALL FEDERATION INC.
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2020
i. Comparative Figures
Comparatives are consistent with prior years, unless otherwise stated.
j. Income Tax Status
The Association is exempt from payment of income tax under the provisions of section 23(g) of the Income Tax Assessment Act 1936.
k. Critical Accounting Estimates and Judgments
The Association evaluates estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Association.
l. Key Estimates – Provision for Long Service Leave
The Association’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The Association doesn’t provide for related on costs. The Association discounts the long service leave provision using the appropriate externally obtained government bond rate.
m. Adoption of new and revised accounting standards
There were no new standards that had a material effect in this year.
n. Financial Position
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Association incurred a profit for the 2020 year of $1,056,761 (31 December 2019: $208,836 loss) with a net cash in-flow of $1,432,347 (31 December 2019: $533,473). As at 31
December 2020, the Association had a working capital surplus of $1,824,197 (31 December 2019: $596,119). Included in the working capital surplus is deferred income of $1,079,351
(31 December 2019: $949,227).
Based on the above facts and the cash flow forecast prepared by management, the Directors consider the going concern basis of preparation to be appropriate.
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