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The Graduate Union of the University of Melbourne Inc.
ABN: 55 610 664 963
Notes to the Financial Statements (continued) for the year ended 31 December 2022 cost and net realisable value.
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(e) Employee Benefits
IARN: A0023234B
Provision is made for the Association's liability for employee benefits arising from services rendered by employees to the end of the reporting period.
(f) Revenue and Other Income
Revenue from accommodation is recognised upon the delivery of services to residents. Revenue from catering is accounted for on an accrual basis. Interest revenue is recognised on a proportional basis, taking into account the interest rates applicable to the financial assets. Grant revenue in accordance with AASB 15: Revenue from Contracts with Customers and AASB 1058: Income for Not For Profit Entities is recognised as it satisfies its performance obligations. All revenue is stated net of the amount of G oods and Services Tax.
(g) Goods and Services Tax (GST)
Revenues, expenses, and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(h) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short -term highly liquid investments with original maturities of three months or less, and bank overdrafts.
(i) Impairment of Assets
At the end of each reporting period, the Association reviews the carrying values of its tangible assets to determine whether there is any indication that th ose assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the Statement of Comprehensive Income. Where it is not possible to estimate the recoverable amount of an individual asset, the Association estimates the recoverable amount of the cash-generating unit to which the asset belongs.
(j) Provisions
Provisions are recognised when the Association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result , and that outflow can be reliably measured.
(k) Investment Portfolio Revaluations
A market valuation report is obtained for the managed investment portfolio at balance date. Net movement in the value of the underlying assets is recorded in the Statement of Comprehensive Income.
(l)
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
