Annual Report 2011 - ACEM

(ii) Loans and receivables
Loans and receivables are non-derivative fi nancial assets with
fi xed or determinable payments that are not quoted in an
active market and are subsequently measured at amortised
cost using the effective interest rate method.
(iii) Held-to-maturity investments
These investments have fi xed maturities, and it is the
College’s intention to hold these investments to maturity.
Any held-to-maturity investments held by the College are
stated at amortised cost using the effective interest rate
method.
(iv) Available-for-sale fi nancial assets
Available-for-sale fi nancial assets are non-derivative fi nancial
assets not included in the above categories. Available-for-sale
fi nancial assets are refl ected at fair value.
(v) Financial liabilities
Non-derivative fi nancial liabilities are subsequently measured
at amortised cost.
Fair Value
Fair value is determined based on current bid prices for all
quoted investments. Valuation techniques are applied
to determine fair value for all unlisted securities.
Impairment of Assets
At the end of each reporting period, the College reviews the
carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been
impaired. If such an indication exists, the recoverable amount of
the asset, being the higher of the asset’s fair value less costs to
sell and value in use, is compared to the asset’s carrying value.
Any excess of the asset’s carrying value over its recoverable
amount is expensed to the statement of comprehensive income.
Impairment testing is performed annually for goodwill and
intangible assets with indefi nite lives.
Where it is not possible to estimate the recoverable amount of
an individual asset, the College estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
Where an impairment loss on a revalued asset is identifi ed, this
is debited against the revaluation surplus in respect of the same
class of asset to the extent that the impairment loss does not
exceed the amount in the revaluation surplus for that same class
of asset.
Intangibles
Web-site costs are initially recognised on the cost basis. After
initial recognition, web-site costs are carried at their cost, less
any accumulated amortisation over their estimated useful life or
fi ve years, and any accumulated impairment losses.
Employee Benefi ts
Provision is made for the College’s liability for employee benefi ts
arising from services rendered by employees to the end of the
reporting period. Employee benefi ts that are expected to be
settled within one year have been measured at the amounts
expected to be paid when the liability is settled, plus related
on-costs. Employee benefi ts payable later than one year have
been measured at the present value of the estimated future cash
outfl ows to be made for those benefi ts.
Contributions are made to employee superannuation funds
and are charged as expenses when incurred. All employees are
entitled to varying levels of benefi ts on retirement, disability
or death. The superannuation plans or equivalent provide
accumulated benefi ts. Contributions are made in accordance
with the statutory requirements of each jurisdiction.
Provisions
Provisions are recognised when the College has a legal or
constructive obligation, as a result of past events, for which it is
probable that an outfl ow of economic benefi ts will result and
that outfl ow can be reliably measured. Provisions recognised
represent the best estimate of the amounts required to settle
the obligation at reporting date.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held atcall
with banks, other short-term highly liquid investments with
original maturities of six months or less, and bank overdrafts.
Bank overdrafts are shown within short-term borrowings in
current liabilities on the statement of fi nancial position.
Revenue
Revenue from the sale of goods is recognised when the goods
are delivered to customers.
Interest revenue is recognised on a proportional basis taking into
account the interest rates applicable to the fi nancial assets.
Subscriptions and Exam Fees
Subscriptions and Exam Fees have been included on an accruals
basis which is consistent with the accounting policy adopted in
the previous year. The revenue is recognised when the service
has been provided.
Grant revenue from the DOHA Project “More Doctors for
Emergency Departments 2011-2013”, which commenced in June
2011, is recognised in the statement of comprehensive income
on a systematic basis over the periods in which the College
recognises as expenses the related costs for which the grant is
intended to compensate. All other grant revenue is recognised in
the statement of fi nancial position as a liability until the service
has been delivered to the contributor, at which time the net
surplus/(defi cit) on the project is recognised in the statement of
comprehensive income.
Revenue from the providing of all other services is recognised
when the service is provided.
Borrowing Costs
Borrowing costs directly attributable to the acquisition,
construction or production of assets necessarily take a
substantial period of time to prepare for their intended use or
sale, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use of sale.
All other borrowing costs are recognised in income in the period
in which they are incurred.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount
of GST, except where the amount of GST incurred is not
recoverable from the Tax Offi ce. In these circumstances, the GST
is recognised as part of the cost of acquisition of an asset or as
part of an item of the expense. Receivables and payables in the
balance sheet are shown inclusive of GST.
Cash fl ows are presented in the statement of cash fl ows on
a gross basis, except for the GST component of investing and
fi nancing activities, which are disclosed as operating cash fl ows.
ACEM Annual Report 2011
49