Annual Report - The Greens The Entrance

The Entrance Bowling Club LimitedABN 29 000 956 052Notes to the Financial StatementsFor The Year Ended 30 June 2011Note 1.Statement of Significant Accounting Policies (cont’d)(e)Financial Instruments (cont'd)Available-for-sale financial assetsAvailable-for-sale financial assets are reflected at fair value. Unrealised gains and lossesarising from changes in fair value are taken directly to equity.Financial liabilitiesNon-derivative financial liabilities are recognised at amortised cost, comprising originaldebt less principal payments and amortisation.(f)Impairment of AssetsAt each reporting date, the company reviews the carrying values of its assets todetermine whether there is any indication that those assets have been impaired. If suchan indication exists, the recoverable amount of the asset, being the higher of the asset’sfair 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 theincome statement.(g)Employee BenefitsProvision is made for the company’s liability for employee benefits arising from servicesrendered by employees to balance date. Employee benefits that are expected to besettled within one year have been measured at the amounts expected to be paid whenthe liability is settled, plus related on-costs. Employee benefits payable later than oneyear have been measured at the present value of the estimated future cash outflows tobe made for their benefits.(h)Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, otherbank accounts and bank overdrafts. Bank overdrafts are shown within short-termborrowings in current liabilities on the balance sheet.1432