2021 Annual Report web - Flipbook - Page 36
INC ANNUAL REPORT | 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 2. Summary of Significant Accounting Policies (continued)
(d) Pastors and Employee Benefits
Provision is made for the Group's liability for employee benefits arising from services rendered by employees
to reporting date.
Short term employee benefits
Employee benefits expected to be settled within one year have been measured at the amounts expected to be
paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have
been measured at the present value of the estimated future cash outflows based on Australian corporate bonds
at the reporting date. Contributions are made by the Group to employees' superannuation funds and are
charged as expenses when incurred.
Other long term employee benefits
The long service leave is managed by the local church and local Global Care operations for their staff. The
Colleges manage the long service leave for their staff. An employee’s period of service is measured across the
(e) Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are
subject to impairment or adjusted for any re-measurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for shortterm leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
(f) Impairment of Assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. As a not-for-profit entity, value in use of property, plant and equipment and intangible assets at cost
includes depreciated replacement cost.
(g) Income Tax
Christian Outreach Centre is exempt from income tax under section 50-5 of the Income Tax Assessment Act 1997.