EN - Business (Report) - Flipbook - Page 24
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2022
Superannuation
Contributions to superannuation plans are expensed
when incurred.
(i) Income in advance
Income in advance comprises deposits received for the
letting of facilities for specific events that have yet to
occur, as well as membership fees received in advance.
Income in advance is initially recorded as a liability
at fair value until such time as RASWA has fulfilled its
obligations under the terms of the contract, at which time
the funds are regarded as revenue.
(j) Goods and services tax
Revenues and expenses are recorded net of GST. The
net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or
payables. Cash flows are included in the Statement of
Cash Flows on a gross basis.
The GST component of cash flows arising from investing
and financing activities which is recoverable from,
or payable to, the taxation authority is classified as
operating cash flows.
(k) Leases - RASWA as a lessee
Leases are recognised as right-of-use assets and
corresponding liabilities at the date at which the leased
assets are available for use by RASWA. The right-of-use
asset is included within Property, Plant and Equipment
in the statement of financial position.
At the commencement date, lease liabilities are
measured at an amount equal to the present value of the
following lease payments for the underlying right-of-use
assets during the lease term:
• fixed payments (including in-substance fixed
payments), less any lease incentives receivable;
• variable lease payments that are based on an index
or a rate;
• amounts expected to be payable by RASWA under
residual value guarantees;
Each lease payment is allocated between the liability and
finance cost. Lease liabilities are subsequently measured
using the effective interest method. The carrying amount
of liability is remeasured to reflect any reassessment,
lease modification or revised in-substance fixed
payments. The lease term is a non-cancellable period
of a lease; periods covered by options to extend and
terminate the lease are only included in the lease term if
it is reasonably certain that the lease will be extended or
not terminated.
Right-of-use assets are measured initially at cost
comprising the following:
• the amount of the initial measurement of the
lease liability;
• any lease payments made at or before the
commencement date less any lease incentives
received;
• any initial direct costs;
• restoration costs.
Subsequently, the right-of-use assets are measured
at cost less accumulated depreciation and any
accumulated impairment losses, and adjusted for
remeasurement of the lease liability due to reassessment
or lease modifications.
The right-of-use assets are depreciated over the
shorter of the asset’s useful life and the lease term
on a straightline basis.
Payments associated with all short-term leases and
certain leases of all low-value assets are recognised
on a straight-line basis as an expense in profit or loss.
RASWA applies the exemption for low-value assets on
a lease-by-lease basis i.e. for the leases where the asset
is sub-leased, a right-of-use asset is recognised with
corresponding lease liability; for all other leases of low
value asset, the lease payments associated with those
leases will be recognised as an expense on a straight-line
basis over the lease term.
• the exercise price of a purchase option if RASWA is
reasonably certain to exercise that option;
Short-term leases are leases with a lease term of 12
months or less.
• payments of penalties for terminating the lease, if the
lease term reflects RASWA exercising that option.
Low-value assets comprise computers, tablets, mobile
phones and small items of office furniture.
The lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined, or RASWA’s incremental borrowing rate.
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