Home' Annual Report : Annual Report 2016 Contents Financial assets are classified into the following categories:
“held-to-maturity” investments, “available-for-sale” financial
assets and loans and receivables. The classification depends
on the nature and purpose of the financial assets and is
determined at the time of initial recognition.
Trade creditors represent liabilities for goods and services
provided to the Consolidated Entity prior to the end of
the financial year and which are unpaid. The amounts are
unsecured and are usually paid within 30 days of recognition.
O. DERIVATIVE FINANCIAL INSTRUMENTS
It is not current CPA Australia policy to enter into
foreign exchange contracts to hedge foreign currency
P. EMPLOYEE BENEFITS
Employee benefits expected to be settled within one year
have been measured at the amounts expected to be paid.
Employee benefits payable later than one year have been
measured at the present value of the estimated future cash
outflows to be made for those benefits. Discount rate used
reflects national government securities that most closely
match the terms of maturity of the related liabilities.
The provision for annual leave represents the amount which
CPA Australia has a present obligation to pay resulting
from employees’ ser vices provided up to balance date. The
provision has been calculated at the amount s expected to
be paid when the liability is settled and includes on-costs.
Long service leave
The liability for employee benefits for long service leave
represents the present value of the estimated future
cash outflows to be made by the employer resulting from
employees’ ser vices provided up to the balance date.
In determining the liability for employee benefits, account
has been taken of future increases in wage and salar y rates,
and CPA Australia’s experience with staff depar tures.
Related on-costs also have been included in the liability.
Defined benefit plan
A small percentage of staff par ticipates in the CPA Australia
defined benefit plan.
Mercer Benefit Ser vices has provided actuarial calculations
of the current benefit of the defined benefit liability.
Actuarial gains and losses are recognised in full, directly in
retained earnings, in the period in which they occur, and
presented in the statement of comprehensive income.
Past ser vices cost is recognised immediately to the extent
that the benefits are already vested, and otherwise
amortised on a straight-line basis over the average period
until the benefits become vested.
The defined benefit obligation recognised in the Statement
of financial position represents the present value of the
defined benefit obligation, adjusted for unrecognised
past ser vice cost, net of the fair value of plan assets. Any
asset resulting from this calculation is limited to the past
ser vice cost, plus the present value of available refunds and
reduc tions in future contributions to the plan. The plan is no
longer open to new members as of 31 December 1999.
Defined contribution superannuation
Contributions to defined contribution superannuation plans
are expensed when paid.
Q. CASH AND CASH EQUIVALENTS
Cash and cash equivalent s comprise cash on hand, cash in
banks, at call deposits and bank bills maturing within less
than 90 days from the date of inception.
R. COMPARATIVE AMOUNTS
When a change in accounting policy is applied
retrospectively in accordance with Australian Accounting
Standards, we have adjusted the opening balance of each
affected component of equity for the earliest prior period
presented and the other comparative amounts disclosed
for each prior period presented as if the new accounting
policy had always been applied. Cer tain amount s in the
comparative information have been reclassified to conform
with current period financial statement presentations.
S. WEBSITE COSTS
The primar y focus of the CPA Australia website is as
an advertising, branding and information tool for the
organisation and its members. All maintenance and
operational expenditure have been treated as expenses
incurred in the period.
T. CRITICAL JUDGEMENTS IN APPLYING
THE ENTITY’S ACCOUNTING POLICIES
The following are the critical judgements that management
has made in the process of applying the Group’s accounting
policies and that have the most significant effect on the
amounts recognised in the financial statements:
Management judgement is applied in determining the
following key assumptions used in the calculation of long
ser vice leave at balance date:
• future increases in wages and salaries
• future on-cost rates
• experience of employee departures and period of service
• defined benefit plan
Intangible and other assets
Management’s judgement is applied to depreciation /
amor tisation rates, useful lives and residual values.
CPA AustrAliA 2O16 integrAted rePOrt
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