Annual Report - Campus Living Villages

6 4 Campus Living Villages Annual Report 09/10
Campus Living Australia Trust
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
A$’000
CLAT
t) Employee benefits
Wages and salaries, annual leave, sick leave
Liabilities for wages and salaries, including non-monetary
benefits and annual leave expected to be settled within 12
months of the reporting date are recognised in other payables
in respect of employees’ services up to the reporting date and
are measured at the amounts expected to be paid when the
liabilities are settled.
Long service leave
The liability for long service leave is recognised in 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 up to the reporting date
using the projected unit credit method. Consideration is given
to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future
payments are discounted using market yields at the reporting
date on national government bonds with terms to maturity
and currency that match, as closely as possible, the estimated
future cash outflows.
Bonus plan
The consolidated entity recognises a liability and an
expense for bonuses based on a formula that takes into
consideration the performance of the Fund. The consolidated
entity recognises a provision where contractually obliged
or where there is a past practice that has created a
constructive obligation.
The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable
to the taxation authority, are presented as an operating
cash flow.
x) Rounding of amounts
The consolidated entity is of a kind referred to in Class order
98/100, issued by the Australian Securities and Investments
Commission, relating to the ‘’rounding off’’ of amounts in the
financial report. Amounts in the financial report have been
rounded off in accordance with that Class Order to the nearest
thousand dollars, or in certain cases, the nearest dollar.
y) Parent entity information
The financial information for the parent entity disclosed
in note 26 has been prepared on the same basis as the
consolidated financial statements except as set below:
Investment in subsidiaries
Investments in subsidiaries are accounted for at cost in the
financial information provided for the parent entity.
z) New accounting standards
AASB 9 Financial Instruments and AASB 2009-11
Amendments to Australian Accounting Standards arising
from AASB 9 (effective from 1 January 2013) AASB 9 Financial
Instruments addresses the classification and measurement of
financial assets and is likely to affect the group’s accounting
for its financial assets. The standard is not applicable until
1 January 2013 but is available for early adoption.
u) Issued capital
The issued capital of the parent entity is the unit holdings
of CLAT. The issued capital of the consolidated entity
is the capital of the acquirers identified in the business
combinations in the underlying trusts.
v) Distributions
A provision is made for the amount of any distribution
approved by the directors on or before the end of the financial
year but not distributed at balance date.
w) Good and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority, in which case it is
recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount
of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is
included with other receivables or payables in the balance
sheet. Cash flows are presented on a gross basis.
Revised AASB 124 Related Party Disclosures and AASB
2009-12 Amendments to Australian Accounting Standards
(effective from 1 January 2011). In December 2009 the AASB
issued a revised AASB 124 Related Party Disclosures. It is
effective for accounting periods beginning on or after 1 January
2011 and must be applied retrospectively. The amendment
clarifies and simplifies the definition of a related party. When
the amendments are applied, the consolidated entity will need
to disclose any transactions between its subsidiaries and its
associates. However, there will be no impact on any of the
amounts recognised in the financial statements.
AASB 2010-3 Amendments to Australian Accounting
Standards arising from the Annual Improvements Project and
AASB 2010-4 Further Amendments to Australian Accounting
Standards arising from the Annual Improvements Project
(effective from 1 July 2010/1 January 2011). In June 2010,
the AASB made a number of amendments to Australian
Accounting Standards as a result of the IASB’s annual
improvements project. The group will apply the amendments
from 1 July 2010. It does not expect that any adjustments will
be necessary as a result of applying the revised rules.