Portland District Health Annual Report 2005 - South West Alliance of ...

Portland District HealthNotes to and Forming Part of the Financial Statements for the Year Ended 30 June 2005Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluationdecrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised immediately as revenuein the net result.Revaluation decrements are recognised immediately as expense in the net result, except that, to the extent, that a credit balance exists in theasset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.Revaluation increments and decrements are offset against one another within a class of non-current assets.(g)DepreciationAssets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost (orvaluation) over their estimated useful lives using the straight-line method. Estimates of the remaining useful lives for all assets are reviewed atleast annually. This depreciation charge is not funded by the Department of Human Services.The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.2004-2005 2003-2004Buildings Up to 50 years Up to 50 yearsPlant and Equipment Up to 10 years Up to 10 yearsMedical Equipment Up to 10 years Up to 10 yearsComputer Equipment Up to 5 years Up to 5 yearsMotor Vehicles Up to 5 years Up to 5 yearsLeased Assets Up to 5 years Up to 5 yearsOther Equipment Up to 10 years Up to 10 years(h)PayablesThese amounts represent liabilities for goods and services provided prior to the end of the financial year and which are unpaid. The normalcredit terms are usually Net 30 days.(I)Interest Bearing LiabilitiesInterest bearing liabilities in the Statement of Financial Position are carried at face value less unamortised discount/premium. Any discount/premium is treated as an interest charge and amortised over the term of the debt. Interest is accrued over the period it becomes due and isrecorded as part of other creditors.(j)Goods and Services TaxRevenues, expenses and assets are recognised net of GST except for receivables and payables which are stated with the amount of GST includedand except where the amount of GST incurred is not recoverable, in which case GST is recognised as part of the cost of acquisition of anasset or part of an item of expense or revenue. GST receivable from and payable to the Australian Taxation Office (ATO) is included in theStatement of Financial Position. The GST component of a receipt or payment is recognised on a gross basis in the Statement of Cashflows inaccordance with Accounting Standard AAS 28.(k)Employee BenefitsEmployee benefit liabilities are based on pay rates expected to apply when the obligation is settled. On-costs such as Workcover andsuperannuation are included in the calculation of leave provisions.55