YMAC Annual Report 2022

Notes to the Consolidated Financial Statements
as at 30 June 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1.5. Leases
The Corporation leases various commercial properties. Until the 2019 financial year, leases of
commercial properties and office equipment were classified as operating leases. Payments
made under operating leases (net of any incentives received from the lessor) were charged to
profit or loss on a straight-line basis over the period of the lease.
From 1 July 2019, leases are recognised as a right of use asset and a corresponding liability at
the date at which the leased asset is available for use by the Corporation. Each lease
payment is allocated between the liability and finance cost. The right-of-use asset is
depreciated over the lease term on a straight-line basis. Assets and liabilities arising from a
lease are initially measured on a present value basis. Lease Liability includes the net present
value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives
receivable
• Variable lease payments that are based on an index or a rate
Right of Use Assets are measured at cost comprising the following:
• The amount of the initial measurement of the lease liability net of any previously
recognised onerous lease provisions; and
• Any restoration costs applicable to the lease.
Payments associated with short-term leases and leases of low-value assets are recognised
on a straight-line basis as an expense in profit or loss. Short term leases are leases with a
lease term of 12 months or less. Low-value assets comprise of office equipment.
1.6. Cash
Cash and cash equivalents includes cash on hand and demand deposits in bank accounts
with an original maturity of 3 months or less that are readily convertible to known amounts
of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal
amount. Interest is credited to revenue as it accrues.
1.7. Financial Instruments
Financial assets and financial liabilities are recognised in the Corporation’s statement of
financial position when the Corporation becomes a party to the contractual provisions
of the instrument.
Financial instruments (except for trade receivables) are initially measured at fair value plus
transaction costs, except where the instrument is classified “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss immediately.
Financial assets
Financial assets are subsequently measured at:
• amortised cost;
• fair value through other comprehensive income; or
• fair value through profit or loss.
A financial asset that meets the following conditions is subsequently measured at
amortised cost:
• the financial asset is managed solely to collect contractual cash flows; and
• the contractual terms within the financial asset give rise to cash flows that are
solely payments of principal and interest on the principal amount outstanding on
specified dates.
58 | Yamatji Marlpa Aboriginal Corporation | Annual Report 2022