SURF LIFE SAVING AUSTRALIA ANNUAL REPORT 2007–08

Available-for-sale fi nancial assets
Available-for-sale fi nancial assets include any
fi nancial assets not included in the above categories.
Available-for-sale fi nancial assets are refl ected at fair
value. Unrealised gains and losses arising from changes
in fair value are taken directly to equity.
Financial Liabilities
Non-derivative fi nancial liabilities are recognized at
amortised cost, comprising original debt less principal
payments and amortisation.
Impairment
At each reporting date, the company assesses whether
there is objective evidence that a fi nancial instrument
has been impaired. Impairment losses are recognised in
the Income Statement.
(g) Inventories
Inventories are measured at the lower of cost and net
realisable value. Costs have been assigned to inventory
quantities on hand at balance date using average cost.
(h) Property, Plant & Equipment & Depreciation
Freehold land is stated at cost and is not depreciated.
Buildings are stated at cost. The building owned by the
parent entity represents one fl oor of the building located
at 1 Notts Avenue, Bondi Beach, NSW. This building is
depreciated over an estimated useful life of 100 years.
All other buildings are depreciated over an estimated
useful life of 40 years.
Plant and equipment is stated at cost. Plant and equipment
is depreciated using the prime cost method and rates of
between 15% and 36%.
Motor vehicles are stated at cost. Motor vehicles are
depreciated using the prime cost method of 22.5%.
Aircraft relates to the helicopters owned and leased by the
consolidated entity. Aircraft and equipment are depreciated
using the prime cost method. The depreciation rates for
each aircraft will vary considerably and are based on the
estimated useful lives of the individual assets.
The depreciation rates used are:
Aircraft at Valuation 5% – 29%
Aircraft and equipment at cost 5% – 33%
Leased aircraft at cost 5%
SURF LIFE SAVING AUSTRALIA LIMITED AND ITS CONTROLLED ENTITIES—ACN 003 147 180
(i) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand,
deposits held at call with banks, other short term-highly
liquid investments with original maturities of three months
or less, and bank overdrafts
(j) Employee Entitlements
Annual leave entitlements have been measured at nominal
value regardless of whether they are expected to be settled
within twelve months of balance date.
Long service leave entitlements have been measured
at the present value of the estimated future cash outfl ows
in respect of services provided up to balance date.
Liabilities are determined after taking estimated on-costs
into consideration.
(k) Leased Assets
Leased assets classifi ed as fi nance leases are capitalised
as fi xed assets. The amount initially brought to account is
the present value of minimum lease payments.
A fi nance lease is one that effectively transfers from the
lessor to the lessee, substantially all the risks and benefi ts
incidental to ownership of the leased property.
Capitalised leased assets are amortised on a
straight-line basis over the estimated useful life
of the asset to the entity.
Finance lease payments are allocated between interest
expenses and reduction of lease liability over the term
of the lease. The interest expense is determined by
applying the interest rate implicit in the lease to the
outstanding lease liability at the beginning of each
lease payment period.
Operating lease payments are charged as an
expense in the year in which they are incurred.
(l) Segment Reporting
Segment revenues and expenses are those directly
attributable to the segments and include any joint revenue
and expenses where a reasonable basis of allocation exists.
Segment assets include all assets used by a segment
and consist principally of cash, receivables, inventories
and property, plant and equipment, net of accumulated
depreciation and amortisation. Segment liabilities consist
principally of accounts payable, employee entitlements,
accrued expenses, provisions and borrowing.
SECTION 03—FINANCIAL STATEMENTS
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