Page 48 - RCPA

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Notes to the Financial Statements
1. (f)
THE ROYAL COLLEGE OF PATHOLOGISTS OF AUSTRALASIA
ABN 52 000 173 231
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018
Significant Accounting Policies (continued) Employee Benefits (continued)
Other long-term employee benefits
Liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the end of the reporting period. They are recognised as part of the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees to the end of the reporting period using the projected unit credit method. Consideration is given to expected future salaries and wages levels, experience of employee departures and periods of service. Expected future payments are discounted using national government bond rates at the end of the reporting period with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Regardless of when settlement is expected to occur, liabilities for long service leave and annual leave are presented as current liabilities in the statement of financial position if the entity does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period.
Cash and Cash Equivalents
For the purpose of the Statement of Cash Flows, cash includes cash on hand and in call deposits with banks or financial institutions, investments in money market instruments maturing within less than three months, net of bank overdrafts.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
Borrowing Costs
Borrowing costs are recognised in the Statement of Profit or Loss and Other Comprehensive Income in the period in which they are incurred, unless they are attributable to a qualifying asset when they are capitalised as part of the asset.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of an asset or as part of the expense.
Receivables and payables in the Statement of Financial Position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position.
Cash flows are included in Statement of Cash Flows on a gross basis. The GST component of cash flow arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
(g)
(h)
(i)
(j)
8
ANNUAL REPORT • 2017 - 2018