Finances

Notes to and forming part of the accounts

For the year ended 31 December 2002

1. Summary of significant accounting policies
The general purpose financial report has been prepared in accordance with Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Consensus Views and the Corporations Act 2001. It is prepared in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year.

1. Basis of accounting The accounts have been prepared on the basis of historical cost and except where stated, do not take into account current valuations of non-current assets. Non-current assets are revalued from time to time as considered appropriate by the directors. The directors have not adopted a policy of revaluing non-current assets on a regular basis.
2. Income tax The Australian Library and Information Association is a non-profit organisation established for community service purposes and is exempt from income tax under division 50(10) of the Income Tax Assessment Act 1997.
3. Depreciation Depreciation is calculated on a diminishing value basis to write off the net cost of each non-current asset (excluding land) during its expected useful life to the Association, with the exception of the building which is calculated on a straight-line basis. The expected useful lives are as follows: Computer equipment: 1-3 years; Furniture and fittings: 3-11 years; TASS database: 5 years; Office partitions: 10 years; Air-conditioning rectification: 4-5 years; Building: 30 years. Additions are depreciated from the month in which they were acquired.
4. Employee entitlements i. Wages and salaries, annual leave and sick leave: Liabilities for wages and salaries, annual leave and sick leave are recognised, and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. ii. Long-service leave: A liability for long-service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on national government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows. iii. Employee numbers: The number of employees at the end of the financial year was 19 (2001: 19).
5. Valuation and recoverable amount of non-current assets Leasehold land and buildings are carried at cost. Where the carrying amount of an individual non-current asset is greater than the net amount expected to be recovered through the nominal net cash inflows arising from their continued use and subsequent disposal ('recoverable amount'), the asset is revalued to its recoverable amount. The decrement is recognised as an expense in the statement of income and expenditure.
6. Receivables and revenue recognition i. Trade debtors: Trade debtors are recognised for advertising income. The revenue is recognised when the customer requests advertisement in a periodic publication. All trade debtors are recognised at the amounts receivable as they are due for settlement no more than thirty days from the date of recognition. Collectibility of trade debts is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised where some doubt as to collection exists.
7. Conferences Expenditure incurred before the financial year end relating to any future conference is included in the balance sheet as a prepayment or deferred revenue to be expensed or earned in the accounts of the year in which the respective conference is held.
8. Cash For the purpose of the statement of cashflows, cash includes deposit at call which are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis, net of outstanding overdrafts.
9. Comparative figures Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.
10. Trade and other creditors These amounts represent liabilities for goods and services provided to the Association prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within thirty days of recognition.
11. Borrowings Loans are carried at their principal amounts. Interest is accrued over the period it becomes due and is recorded as part of other creditors.
12. Maintenance and repairs Maintenance, repair costs and minor renewals are charged as expenses when incurred.
13. Borrowing costs Borrowing costs are recognised as expenses in the period in which they are incurred. Borrowing costs include interest on long-term borrowings and finance lease charges.