SURF LIFE SAVING AUSTRALIA ANNUAL REPORT 2007–08

NOTES TO AND FORMING PART
OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The fi nancial report is a general purpose fi nancial report
which has been prepared in accordance with Australian
Accounting Standards including Australian Accounting
Interpretations and other authoritative pronouncements
of the Australian Accounting Standards Board,
Corporations Act 2001, Charitable Fundraising Act 1991
and the Charitable Fundraising Regulations 1993.
The fi nancial report covers the consolidated group of
Surf Life Saving Australia Limited and controlled entities
and Surf Life Saving Australia Limited as an individual
parent entity. The fi nancial report complies with all
Australian equivalents to International Financial Reporting
Standards (AIFRS). Surf Life Saving Australia Limited is
incorporated and domiciled in Australia and is a company
limited by guarantee.
The company’s fi nancial statements are presented in
Australian dollars.
The following is a summary of the material accounting
policies adopted by the consolidated group in the
preparation of the fi nancial report. The accounting policies
have been consistently applied, unless otherwise stated.
The accounting policies set out below have been
consistently applied to all years presented.
(a) Basis of Accounting
The fi nancial statements have been prepared on
the historical cost basis. It does not take into account
changing money values. Cost is based on the fair values
of the consideration given in exchange for assets.
(b) Impairment of Assets
At each reporting date, the entity reviews the carrying
values of its tangible 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 Income Statement.
Where it is not possible to estimate the recoverable
amount of an individual asset, the group estimates the
recoverable of the cash generating unit to which the
asset belongs.
70 SURF LIFE SAVING AUSTRALIA—ANNUAL REPORT 2007–08
(c) Revenue Recognition
Revenue from contracts is recognised when the amount
of revenue can be measured reliably and it is probable that
it will be received by the company.
Revenue from sponsorship and grant income is
recognised in the period to which it relates and can
be measured reliably and it is probable that it will be
received by the company.
Revenue from fundraising is recognised when the amount
of revenue can be measured reliably and it is received by
the company.
Other income is recognised when the amount of revenue can
be measured reliably and it is probable that it will be received
by the company.
Interest revenue is recognised on an effective yield basis.
All revenue is stated net of the amount of goods and
services tax (GST).
(d) Principles of Consolidation
The consolidated fi nancial statements combine the fi nancial
statements of Surf Life Saving Australia Limited and all its
controlled entities (refer Note 16).
The effects of all transactions between entities in the
consolidated group have been eliminated in full and the
consolidated fi nancial statements have been prepared
using uniform accounting policies for like transactions
and other events in similar circumstances.
(e) Income Tax
The Parent entity is exempt from taxation by virtue of item 1.1
of section 50-5 of the Income Tax Assessment Act 1997.
(f) Financial Instruments
Recognition
Financial instruments are initially measured at cost
on trade date, which includes transaction costs, when
the related contractual rights or obligations exist.
Subsequent to initial recognition these instruments
are measured and set out below:
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 stated at amortised cost using the
effective interest rate.