Notes to the Financial Statements.
For the year ended 30 June 2008
1. Summary Of Significant Accounting Policies (continued)
(i) Provisions
Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
(j) Cash & Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.
(k) Good & 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 cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(l) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
Critical accounting estimates & judgments
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 both externally and within the company.
Key Estimates – Impairment
The company assess impairment at each reporting date by evaluation of conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use or current replacement costs calculations performed in assessing recoverable amounts incorporate a number of key estimates.
Key Judgments – Provision for Impairment
Included in trade and other receivables at 30 June 2008 is an amount receivable of $340,094. The company is pursuing the debt through the normal course of commercial terms and collectability arrangements. The directors have raised a provision, perhaps conservatively, for the full amount.
Economic Dependence
NTSCORP is dependent on the Department of Families, Community Services and Indigenous Affairs (FaHCSIA) for the majority of its revenue used to operate the business.
NTSCORP is funded to perform the functions of a NTRB pursuant to the Native Titles Act 1993. It is dependent on the continuing provision of these funds for its existence and ability to carry out its normal activites. The funding conditions of NTSCORP are laid down by the Native Titles Act and subject to the General Terms and Conditions Relating to Native Title Program Funding Agreements.
At the date of this report the Board of Directors has no reason to believe that FaHCSIA will not continue to support NTSCORP.
The financial report was authorised for issue on 30 September 2008 by the Board of Directors.
