NNC 2009 - 2010 Annual Report - Newtown Neighbourhood Centre

PG 44 PG 45NOTES TO THEFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 201022010 2009$ $Trade and Other ReceivablesCurrentOther Debtors 1,006 -Trade Debtors 5,418 5,660Prepaid Expenses (4,967) 3,0941,457 8,7541 Statement of Significant Accounting PoliciesThis financial report is a special purpose financial reportprepared in order to satisfy the financial reporting requirementsof the Associations Incorporation Act NSW. The committee hasdetermined that the association is not a reporting entity.The financial report has been prepared in accordance with therequirements of the Associations Incorporation Act NSW and thefollowing Australian Accounting Standards:AASB 110:AASB 116:Events after the Balance Sheet DateProperty, Plant and EquipmentEmployee benefits payable later than one year have beenmeasured at the present value of the estimated future cashoutflows to be made for those benefits. Those cashflows arediscounted using market yields on national government bondswith terms to maturity that match the expected timing of cashflows.ProvisionsProvisions are recognised when the association has a legal orconstructive obligation, as a result of past events, for which it isprobable that an outflow of economic benefits will result and thatoutflow can be reliably measured.3Plant and EquipmentMotor Vehicles - at Cost 38,025 34,335Less Prov’n for Depreciation (8,964) (17,800)29,061 16,535Furniture & Fittings - at Cost 37,327 37,327Less Prov’n for Depreciation (37,327) (37,327)- -Plant and equipment 89,790 78,205Less Prov’n for Depreciation (70,750) (62,040)19,040 16,165Total Plant and Equipment 48,101 32,700AASB 119:Employee BenefitsAASB 1031:Materiality4Employee BenefitsCurrentProvision for Leave Entitlements 66,534 104,510No other applicable Accounting Standards, AustralianAccounting Interpretations or other authoritative pronouncementsof the Australian Accounting Standards Board have been applied.The financial report has been prepared on an accruals basisand is based on historic costs and does not take into accountchanging money values or, except where specifically stated,current valuations of non-current assets.The following material accounting policies, which are consistentwith the previous period unless otherwise stated, have beenadopted in the preparation of this financial report:5Provision for Sick Pay 20,000 -Provision for Long Service Leave 53,809 39,724ReservesGeneral Reserve140,343 144,234Car Replacement 20,000 15,000Computer Replacement 20,000 15,000Equipment Replacement 20,000 20,000Fixed AssetsLeasehold improvements and office equipment are carried at costless, where applicable, any accumulated depreciation.Maintenance Upgrade 20,000 20,000Contingency 10,000 80,000Reserve for Buildings 28,000 -The depreciable amount of all fixed assets, excluding freeholdland, is depreciated over the asset’s useful life to the associationcommencing from the time the asset is held ready for use.Leasehold improvements are depreciated over the shorter ofeither the unexpired period of the lease or the estimated usefullives of the improvements.Employee BenefitsProvision is made for the association’s liability for employeebenefits arising from services rendered by employees to balancedate. Employee benefits that are expected to be settled withinone year have been measured at the amounts expected to be paidwhen the liability is settled.6Reserve for New Car 10,000 -Reserve for Budget Deficit 50,000 -Reserve for Room Hire 10,000 -(Accumulated Losses) Retained Earnings188,000 150,000Retained earnings at the beginning of the financial year 51,455 18,075Transfer to reserve (38,000) -(Net loss) Net profit attributable to the association (47,842) 33,380(Accumulated losses) Retained earningsat the end of the financial year(34,387) 51,455