AITSL Annual Report 2011-12 - Australian Institute for Teaching and ...

1.8 LiabilitiesTrade creditors and accruals are recognised at their nominal amounts, being the amounts at whichthe liabilities will be settled. Liabilities are recognised to the extent that the goods or services havebeen received. Trade accounts are normally settled within 30 days.Provisionsrecognised as a provision is the best estimate of the consideration required to settle the presentobligation at reporting date, taking into account the risks and uncertainties surrounding theobligation.Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includesthe fair value of assets transferred in exchange and liabilities undertaken. Financial assets areinitially measured at their fair value plus transaction costs where appropriate. Assets acquired at nocost, or for nominal consideration, are initially recognised as assets and revenues at their fair valueat the date of acquisition.Purchases of plant and equipment are recognised in the Statement of Financial Position, exceptfor purchases costing less than $1,000, which are expensed in the year of acquisition, other thanThe initial cost of an asset includes an estimate of the cost of dismantling and removing the itemand restoring the site on which it is located. AITSL holds a lease agreement to occupy premisesat 71 Leichhardt Street, Canberra. The lease agreement contains a clause to make-good on thecompany vacating the premises. These costs include the costs of dismantling and removing anasset and restoring the site on which the asset was created, together with recognition of a provisionat present value in accordance with AASB 137 Provisions, Contingent Liabilities and ContingentAssets.Carrying amountEach class of plant and equipment is carried at cost or fair values as indicated, less, whereapplicable, accumulated depreciation and impairment losses.Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equityunder the heading reserves except to the extent that it reverses a previous revaluation decrementdecrements for a class of assets are recognised directly through other comprehensive incomeexcept to the extent that they reverse a previous revaluation increment for that class.Any accumulated depreciation as at the revaluation date is eliminated against the gross carryingamount of the asset and the asset restated to the revalued amount.AITSL Annual Report 2011–201267