ACER Annual Report 2008-2009

Australian Council for Educational Research Ltd and Controlled Entities ABN 19 004 398 145
Notes to the financial statements (for the year ended 30 June 2009)
1 Statement of significant accounting policies continued
1r Critical accounting estimates and judgments
The directors evaluate estimates and judgments incorporated into the financial report based
on historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and based on current trends and economic data, obtained both
externally and within the Group.
Key estimates — Impairment
The group assesses impairment at each reporting date by evaluating conditions specific to the
group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable
amount of the asset is determined. Value-in-use calculations performed in assessing recoverable
amounts incorporate a number of key estimates.
Key judgments — Doubtful debts provision
The directors believe that the doubtful debts provision is adequate to cover any impairment of
receivables as at 30 June 2009.
Key judgments — Project surpluses
Included in the total surplus for the year ended 30 June 2009 was amounts relating to project
surpluses recognised. The directors have judged that these project surpluses should be recognised
over the life of the project measured using the proportion of cost incurred to date as compared
to expected total costs. The directors also use estimated costs to complete the project to
estimate the surplus or deficit recognised each financial year.
Key judgements - Useful lives of property, plant and equipment
Property, plant and equipment are depreciated over their useful life and the depreciation rates are
assessed when the assets are acquired.
1s New accounting standards for application in future periods
The AASB has issued new, revised and amended standards and interpretations that have
mandatory application dates for future reporting periods. The company has decided against early
adoption of these standards. A discussion of those future requirements and their impact on the
company is as follows:
• AASB 2008-11: Amendments to Australian Accounting Standard — Business Combinations
among Not-for-Profit Entities (applicable to annual reporting periods beginning on or after
1 July 2009). These amendments make the requirements in AASB 3: Business Combinations
applicable to business combinations among not-for-profit entities (other than restructures
of local governments) that are not commonly controlled, and to include specific recognition,
measurement and disclosure requirements in AASB 3 for restructures of local governments.
33