EN - Business (Report) - Flipbook - Page 22
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2022
New Accounting Standards and Interpretations not
yet mandatory or early adopted
Australian Accounting Standards and Interpretations
that have recently been issued or amended but are not
yet mandatory, have not been early adopted by RASWA
for the annual reporting period ended 31 March 2022.
RASWA has not yet assessed the impact of these new
or amended Accounting Standards and Interpretations.
(b) Income Tax
RASWA is exempt from income tax under section 50
of the Income Tax Assessment Act 1997.
(c) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand
and cash in banks, net of outstanding bank overdrafts.
Bank overdrafts are shown within borrowings in current
liabilities in the statement of financial position.
AASB 1060 General Purpose Financial Statements –
Simplified Disclosures for For-Profit and Not-for-Profit
Tier 2 Entities is operative for financial reporting periods
beginning on or after 1 July 2021. Certain for-profit and
not for profit entities will be required to prepare general
purpose financial statements, rather than special
purpose financial statements, to enhance consistency,
comparability and transparency of financial reporting.
To reduce the cost of preparing general purpose
financial statements while maintaining their usefulness,
affected entities will be required to follow the recognition
and measurement requirements under Australian
Accounting Standards, but may apply the simplified
disclosure requirements in AASB 1060. AASB 1060
is the new simplified disclosure standard developed
by the AASB based on IFRS for Small and Medium
sized Entities.
(d) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised
when RASWA becomes a party to the contractual
provisions of the financial instrument, and are measured
initially at fair value adjusted by transaction costs, except
for those carried at fair value through profit or loss,
which are measured initially at fair value. Subsequent
measurement of financial assets and financial liabilities
are described below.
The following significant accounting policies have been
adopted in the preparation and presentation of the
financial report:
Classification and subsequent measurement of
financial assets
Except for those trade receivables that do not contain
a significant financing component and are measured
at the transaction price, all financial assets are initially
measured at fair value adjusted for transaction costs
(where applicable).
(a) Revenue
Revenue from the sale of goods is recognised when
RASWA has passed control of the goods to the buyer.
Revenue from the provision of services is recognised
when RASWA has competed its obligations under the
contract or arrangement. Interest revenue is accrued
on a time basis by reference to the amount outstanding
and at the effective interest rate applicable.
Contract assets
Contract assets are recognised when RASWA has
transferred goods or services to the customer but
where RASWA is yet to establish an unconditional
right to consideration. Contract assets are treated
as financial assets for impairment purposes.
Contract liabilities
Contract liabilities represent RASWA's obligation
to transfer goods or services to a customer and are
recognised when a customer pays consideration, or
when RASWA recognises a receivable to reflect its
unconditional right to consideration (whichever is
earlier) before RASWA has transferred the goods
or services to the customer.
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Financial assets are derecognised when the contractual
rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks
and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged,
cancelled or expires.
All income and expenses relating to financial assets
that are recognised in profit or loss are presented within
finance costs or sundry revenue, except for expected
credit losses of trade receivables is presented within
administration expenses.
Classifications are determined by both:
• The entities business model for managing the
financial asset
• The contractual cash flow characteristics of the
financial assets
Financial assets are measured at amortised cost if
the assets meet the following conditions (and are not
designated as Fair Value through Profit or Loss [FVPL]):
• They are held within a business model whose objective
is to hold the financial assets and collect its contractual
cash flows
