2023 annual report final WEB - Flipbook - Page 63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
When the lease liability is remeasured, the
corresponding adjustment is reflected in the right-ofuse asset, or profit and loss if the right-of-use asset is
already reduced to zero.
Note 2. Summary of Significant Accounting Policies
(continued)
(k) Property, Plant and Equipment (continued)
Depreciation
The Group has elected to account for short-term
lease assets by recognising the payments in relation
to short term leases as an expense in profit or loss on
a straight-line basis over the lease term.
Items of property, plant and equipment (other than
land) are depreciated over their useful lives to the
Group commencing from the time the asset is
available for use. Depreciation is calculated on a
straight-line basis over the expected useful economic
lives of the assets as follows:
CATEGORY
Freehold buildings
Plant and equipment
Furniture and fittings
Computer equipment
Motor vehicle
Library resources
RATE
(%)
0.5
5.0
7.5
25.0
10.0
20.0
-
On the statement of financial position, lease liabilities
have been included in current and non-current
liabilities.
RATE
(%)
5.0
25.0
25.0
33.3
25.0
50.0
(n) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of
the amount of associated GST, unless the GST
incurred is not recoverable from the Australian
Taxation Office (ATO). In this case it is recognised as
part of the cost of acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the
amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the ATO is
included with other receivables or payables in the
statement of financial position.
The residual values, useful lives and depreciation
methods are reviewed, and adjusted if appropriate, at
each reporting date.
An item of property, plant and equipment is
derecognised upon disposal or when there is no future
economic benefit to the company. Gains and losses
between the carrying amount and the disposal
proceeds are taken to profit or loss.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or
financing activities which are recoverable from, or
payable to the ATO, are presented as operating cash
flows.
(l) Trade and Other Payables
These amounts represent liabilities for goods and
services provided to the Group prior to the end of the
financial year which are unpaid. Trade and other
payables are presented as current liabilities unless
payment is not due within 12 months from the
reporting date.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to,
the tax authority.
(o) Reclassification
Prior period amounts are reclassified in order to
conform to the current period’s presentation.
(m) Lease Liability
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be
made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot
be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments
comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on
an index or a rate, amounts expected to be paid under
residual value guarantees, exercise price of a
purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments
that do not depend on an index or a rate are expensed
in the period in which they are incurred.
(p) Accounting Standards Issued Not Yet Effective
At the date of authorisation of these financial
statements, certain new standards, amendments and
interpretations to existing standards have been
published but are not yet effective, and have not been
adopted early by the Group.
Management have assessed all standards and
amendments to standards that have been issued but
are not yet effective for the year ended
31 December 2023 and do not believe any will have a
material impact on the group’s financial statements
and have therefore not early adopted any of these
standards.
10
2024 INC Annual Report
63
