Page 49 - RCPA

Notes to the Financial Statements
1.
(k)
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)
Impairment of Assets
At each reporting date, the College reviews the carrying value of its tangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the assets, being the higher of the assets fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and Other Comprehensive Income.
Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the College would, if deprived of the asset, replace its future economic benefits. Value in use is the depreciated replacement cost of an asset.
Critical Accounting Estimates and Judgements
The Directors evaluate 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 externally. The key areas where the directors have exercised judgements are: recoverability of trade debtors and the estimated useful life of property, plant and equipment.
(l)
(m) Grants
The College receives grant monies to fund projects either for contracted periods of time or for specific projects irrespective of the period of time required to complete those projects. It is the policy of the College to treat grant monies as deferred grant income in the Statement of Financial Position where the entity is contractually obliged to provide the services in a subsequent financial period to when the grant is received or in the case of specific project grants where the project has not been completed.
(n) Revenue Recognition Policy
Significant revenue streams:
--Subscriptions and examination fees are recognised in the period to which they relate.
--Donations and registration fees are recognised in the period in which they are received. --Grant revenue is recognised as and when the related costs to which they are intended to
compensate are incurred.
--Interest income is recognised as it accrues, using the effective interest rate.
(o) New, Revised and Amended Standards and Interpretations
The College has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the College.
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ANNUAL REPORT • 2017 - 2018