Notes to the Financial Statements.
For the year ended 30 June 2008
1. Summary Of Significant Accounting Policies
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report is for NTSCORP as an individual entity, incorporated and domiciled in Australia. NTSCORP is a company limited by guarantee.
The financial report of NTSCORP complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety.
The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Reporting Basis & Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Accounting Policies
(a) Income Tax
NTSCORP is for income tax purposes a public benevolent institution. Its income is therefore exempt from income tax under Subdivision 50-B of the Income Tax Assessment Act 1997.
(b) Revenue
Revenue from the sale of services is recognised upon the delivery of services to clients.
Grant revenue is recognised in the income statement when it is received unless there are conditions attached to its use. In those circumstances it is recognised in the balance sheet as a liability until such conditions are met or the services are provided.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
(c) Plant & Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, accumulated depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal.
The expected net cash flows have been discounted to their present values in determining the recoverable amounts.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight line basis over their useful lives to the company commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
| Class of Fixed Asset | Depreciation Rate |
|---|---|
| Computer equipment and software | 33.33% |
| Furniture and fittings | 10.00% |
| Motor vehicles | 22.50% |
| Office equipment | 20.00% |
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
