The Graduate Union of the University of Melbourne Inc.

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Finance and Audit

ABN: 55 610 664 963

Notes to the Financial Statements for the year ended 31 December 2022

IARN: A0023234B

The Financial Statements cover The Graduate Union of the University of Melbourne Inc. as an individual entity incorporated in Victoria under the Associations Incorporation Reform Act 2012 (Vic)

1 Summary of Significant Accounting Policies

(a) Basis of Preparation

The Financial Statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards – AASB 1060 “Simplified Disclosure” , the Associations Incorporation Reform Act 2012 (Vic) and the requirements of the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act)

Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board (AASB) has concluded would result in a financial report containing relevant and reliable information about transactions, events, and conditions. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The Financial Statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets, and financial liabilities.

(b) Income Tax

Tax effect accounting has not been applied as the Association is exempt from Income Tax under Section 50-B of the Income Tax Assessment Act, 1997 (Cth). The Association has also been endorsed as a tax concess ion charity for Goods and Services Tax (GST) and Fringe Benefits Tax by the Australian Taxation Office.

(c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated, minus, where applicable, any accumulated depreciation and impairment losses.

Freehold Land and Buildings

Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transa ction) based on periodic valuations by external independent valuers.

Capital Improvements

Capital improvements are measured at cost.

Asset Revaluations

An independent valuation of the land and buildings is carried out every three to four years. In the interim years, the Council Members review the carrying amount of the land and buildings as at balance date.

Increases and decreases in the carrying amount upon revaluation of land are offset to th e revaluation reserve in equity.

Increases and decreases in the carrying amount upon revaluation of buildings are offset to the Statement of Comprehensive Income.

Plant and Equipment

Plant and equipment are measured on the cost basi s, less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually to ensure that it is not in excess of the recoverable amount from these assets.

Depreciation

The depreciable amount of all fixed assets (excluding Heritage Buildings - refer to Note 9) is depreciated on a straight-line basis over the asset’s useful life commencing from the time the asset is held ready for use. The depreciation rates used range from 2. 5% to 37.5% based on the type of asset.

(d) Inventories

Inventories which consist of beverages, food products and merchandise are measured at the l ower of