Annual Report 22-23 Website v4 - Flipbook - Page 44
SYNCHRO WA INCORPORATED
SYNCHROWA
ABN 42 329 590 466
Notes to the Financial Statements
For the year ended 30 June 2023
Note 1: Statement of Significant Accounting Policies
The financial report is a general purpose financial report that has been prepared in accordance with Accounting
Standards and other authoritative pronouncements of the Australian Accounting Standards Board and the
requirements of the Associations Incorporation Act 1987.
The financial report covers SYNCHRO WA INCORPORATED as an individual entity. SYNCHRO WA
INCORPORATED is an association incorporated in Western Australia under the Associations Incorporation
Act 1987.
The financial report has been prepared on an accruals basis and is based on historical costs and does not
take into account changing money values or, except where stated, current valuations of non-current assets.
Cost is based on the fair values of the consideration given in exchange for assets.
The following is a summary of the material accounting policies adopted by the economic entity in the
preparation of the financial report. The accounting policies have been consistently applied, unless otherwise
stated.
Income tax
The Incorporation is a not for profit organisation and is exempt from income tax.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation.
a) Property
Freehold land and buildings are measured on the fair value basis, being the amount for which an asset
could be exchanged between knowledgeable willing parties in an arm's length transaction. It is a
policy of SYNCHRO WA INCORPORATED to have an independent valuation every three years, with
annual appraisals being made by the directors.
The revaluation of freehold land and buildings has not taken account of the potential capital gains tax
on assets acquired after the introduction of capital gains tax.
b)Plant and equipment
The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the
recoverable amount from those assets. The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the assets employment and subsequent disposal.
The expected net cash flows have not been discounted to present values in determining the
recoverable amounts.
c) Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, but
excluding freehold land, is depreciated on a straight line basis over their useful lives to SYNCHRO WA
INCORPORATED commencing from the time the asset is held ready for use. Properties held for
investment purposes are not subject to a depreciation charge. Leasehold improvements are
depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives
of the improvements.
The depreciation rates used for each class of depreciable asset are:
The accompanying notes form part of these financial statements.
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