Home' Annual Report : Annual Report 2014 Contents • receivables and payables are stated inclusive of GST
The net amount of GST recoverable from, or payable to,
the taxation authority is included as par t of receivables or
payables in the balance sheet.
Cash flows are included in the Statement of cash flows on
a gross basis and the GST component of cash flows arising
from investing and financing activities, which is recoverable
from, or payable to, the taxation authority, are classified as
operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
F) FOREIGN CURRENCY
All foreign currency transactions are shown in
Foreign currency transactions
Transactions in foreign currencies are initially recorded
in the func tional currency at the exchange rates ruling at
the date of the transac tion. Monetar y asset s and liabilities
denominated in foreign currency are retranslated at the
rate of exchange ruling at the balance sheet date. Non-
monetar y asset s and liabilities carried at fair value that are
denominated in foreign currencies are translated at the rates
prevailing at the date the fair value was determined.
Exchange differences are recognised in profit and loss in the
period they occur.
Foreign currency operations
The assets and liabilities of CPA Australia’s overseas
operations are translated at the exchange rates prevailing at
the reporting date. Income and expense items are translated
at the average exchange rate for the period unless exchange
rates fluctuate significantly. Exchange differences arising,
if any, are recognised in the foreign currency translation
reserve, and recognised in the profit and loss.
Revenue is recognised net of discount s to the ex tent
that it is probable that the economic benefits will flow to
CPA Australia and that it can be reliably measured.
Member fees and subscriptions
The subscription year runs 1 Januar y to 31 December.
Subscriptions are payable annually in advance. only those
membership fees and subscription payments that are
attributable to the current financial year are recognised
as revenue. Fees and subscription payments that relate
to future periods are shown in the Statement of financial
position as subscriptions and fees in advance under the
heading of current liabilities – other.
Interest revenue is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate
applicable, which is the rate that exac tly discounts estimated
future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount.
Income from investments
Revenue is recognised when the income is earned.
Sale of non current assets
The net gain / (loss) of non-current asset sales are included
as revenue / (expenses) at the date control passes to the
buyer, usually when an unconditional contract of sale is
The net gain or loss on disposal is calculated as the
difference between the carrying amount of the asset at the
time of disposal and the net proceeds on disposal.
Assets which satisfy the criteria in AASB 5 as assets held
for sale are transferred to current asset s and separately
disclosed as non-current assets held for sale on the face
of the Statement of financial position. These assets are
measured at the lower of carrying amount and fair value less
costs to sell. These assets cease to be depreciated from the
date on which they satisfy the ‘held-for-sale’ criteria.
Revenue is recognised when control of the contribution
or right to receive the contribution is received.
The terms of trade are 30 days from invoice date. Trade
receivables, loans and other receivables that have fixed or
determinable payments that are not quoted in an ac tive
market are classified as ‘loans and receivables’. Loans
and receivables are measured at amortised cost using the
ef fective interest rate method less impairment. An estimate
for doubtful debts is made when collection of the full
amount is no longer probable. Bad debts are written off
CPA AUSTRALIA 2014 INTEGRATED REPORT
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