2023 annual report final WEB - Flipbook - Page 61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 2. Summary of Significant Accounting Policies
(continued)
(b) Basis of Consolidation (continued)
When the group has less than a majority of the voting
or similar rights of a subsidiary, the Group considers
all relevant facts and circumstances in assessing
whether it has power over a subsidiary including:
i)
The contractual arrangement with the other
vote holders of the subsidiary
ii) Rights arising from other contractual
arrangements
iii) The Group's voting rights and potential voting
rights
All intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions
between members of the Group are eliminated in
full-on consolidation.
(c) Revenue
Government grants
Revenue from government grants received under
enforceable agreements, where there are sufficiently
specific performance obligations imposed, is deferred
until the obligations are satisfied. If the performance
obligations are not sufficiently specific, revenue will
be recognised upon receipt.
Donations, Tithes and Offerings
Revenue from fundraising, including donations and
tithes and offerings, is recognised when received.
Tuition and Educational Related Income
Fees and other educational related income is
recognised on an accruals basis consistent with the
provision of the relevant educational service, and
taking into consideration the completion of all
material performance obligations.
Rendering of Services
Revenue from services provided by the Group is
recognised over time as the services are rendered.
Sale of Goods
Revenue from sale of goods is recognised at the point
in time when the customer obtains control of the
goods, which is generally at the time of the delivery.
Interest Income
Interest income is recognised as interest accrues
using the effective interest method. This is the
method of calculating the amortised cost of a
financial asset and allocating the interest income
over the relevant period using the effective interest
rate, which is the rate that exactly discounts
estimated future cash receipts through the expected
life of the financial assets to the net carrying amount
of the financial assets.
All revenue is stated net of the amount of goods and
services tax (GST).
(d) Pastors and Employee Benefits
Provision is made for the Group's liability for
employee benefits arising from services rendered by
employees to the reporting date.
Short term employee benefits
Employee benefits expected to be settled within one
year have been measured at the amounts expected
to be paid when the liability is settled, plus related oncosts. Employee benefits payable later than one year
have been measured at the present value of the
estimated future cash outflows based on Australian
corporate bonds at the reporting date. Contributions
are made by the Group to employees'
superannuation funds and are charged as expenses
when incurred.
Other long term employee benefits
The long service leave is managed by the local church
and local Global Care operations for their staff. The
Colleges manage the long service leave for their staff.
An employee’s period of service is measured across
the Group.
Defined contribution superannuation expense
Contributions
to
defined
contribution
superannuation plans are expensed in the period in
which they are incurred.
(e) Right-of-use assets
A right-of-use asset is recognised at the
commencement date of a lease. The right-of-use
asset is measured at cost, which comprises the initial
amount of the lease liability, adjusted for, as
applicable, any lease payments made at or before the
commencement date net of any lease incentives
received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate
of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site
or asset.
2024 INC Annual Report
61
