AUSTRALIAN ANIMAL HEALTH COUNCIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (l) Impairment AHA assesses whether there is any indication that an asset may be impaired. If so, an estimate of recoverable amount is made. Where the carrying amount of an asset exceeds its recoverable amount it is considered impaired and written down to its recoverable amount. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if AHA were deprived of the asset, its value in use is taken to be its depreciated replacement cost. For 2016/17 no assets are considered to be impaired. (m) Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Non-capital repairs and maintenance are recognised as expenses as incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount, these are included in the income statement. Depreciation is calculated on a diminishing value basis over the estimated useful life of the specific assets as follows: • Furniture and fittings • Office equipment • ICT • Office Fitout 2017 20% 20-33 1/3% 33 1/3% 14.29% 2016 20% 20-331/3% 33 1/3% 14.29% (n) Trade and other payables Trade and other payables are carried at nominal cost, representing goods and services provided prior to end of the financial year that are unpaid and arise when AHA becomes obliged to make future payments in respect of the purchase of these goods and services. (o) Employee benefits Current liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of reporting date are measured at the amounts expected to be paid when the liabilities are settled. Non-current liabilities for annual leave and long service leave not expected to be settled within 12 months of reporting date are measured as the present value of expected future payments to be made for services provided by employees up to the reporting. Consideration is given to likely future wage rises, historical trends of departures and periods of service. - 12 - 92 ANNUAL REPORT 2016-17
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