Annual Report 2011 - Industry Training Federation

184.13 Provisions, contingent liabilities and contingent assetsProvisions are recognised when present obligations as a resultof a past event will probably lead to an outflow of economicresources from the ITF and amounts can be estimated reliably.Timing or amount of the outflow may still be uncertain. Provisionsare not recognised for future operating losses.Provisions are measured at the estimated expenditure requiredto settle the present obligation, based on the most reliableevidence available at the reporting date, including the risks anduncertainties associated with the present obligation.Any reimbursement that the ITF can be virtually certain to collectfrom a third party with respect to the obligation is recognised as aseparate asset. However, this asset may not exceed the amount ofthe related provision.All provisions are reviewed at each reporting date and adjusted toreflect the current best estimate.In those cases where the possible outflow of economic resourcesas a result of present obligations is considered improbable orremote, no liability is recognised.Possible inflows of economic benefits to the ITF that do not yetmeet the recognition criteria of an asset are considered contingentassets.4.14 Leased assetsAll leases have been treated as operating leases. An operatinglease is a lease that does not transfer substantially all the risksand rewards incidental to ownership of an asset. Payments onoperating lease agreements are recognised as an expense on astraight-line basis over the lease term. Associated costs, such asmaintenance and insurance, are expensed as incurred.4.15 Impairment testing of other intangible assets andproperty, plant and equipmentThe carrying amounts of the ITF’s property plant and equipmentare reviewed at each reporting date to determine whether there isany indication of impairment. If any such indication exists then theasset’s recoverable amount is estimated.An impairment loss is recognised if the carrying amount of anasset exceeds its recoverable amount. Impairment losses arerecognised in profit or loss.18Industry Training Federation Annual Report 2011