AUSTRALIAN ACCESS FEDERATION INCORPORATED ABN 13 155 355 685 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED (b) Income In Advance Income received for subscriptions from members and events which will occur in relation to the subsequent financial year are treated as income in advance (c) Income Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Income from the rendering of a service is recognised upon the delivery of the service to the customer or based on the stage of completion of the service delivery at the end of the financial year. All revenue is stated net of the amount of goods and services tax. (d) Goods & Services Tax Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation 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. (e) Equipment. Equipment is measured on the cost basis less depreciation and impairment losses. Depreciation is calculated on a straight-line basis, over the useful lives of the assets to the Association commencing from the time the asset is held ready for use. The carrying amount of equipment is reviewed annually by the Association to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the depreciated replacement cost of the asset. Equipment that has been contributed at no cost, or for nominal cost, is valued at the fair value of the asset at the date it is acquired. (f) Impairment At the end of each reporting date, the Association assesses whether there is any indication that an asset may be impaired. If such an indication exists, the recoverable amount of the assets, being the assets depreciated replacement costs, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expenses in the income statement. - 7 - Income Statements 28