Bondi Surf Bather's Life Saving Club Inc
ABN: 78 306 614 913
Notes to the Financial Statements
For the Year Ended 30 April 2024
Summary of Material Accounting Policies
(f)
Financial instruments
Financial assets
Classification
On initial recognition, the Association classifies its financial assets into the following categories, those
measured at:
amortised cost
Financial assets are not reclassified subsequent to their initial recognition unless the Association changes its
business model for managing financial assets.
Amortised cost
Assets measured at amortised cost are financial assets where:
the business model is to hold assets to collect contractual cash flows; and
the contractual terms give rise on specified dates to cash flows are solely payments of principal and
interest on the principal amount outstanding.
The Association's financial assets measured at amortised cost comprise trade and other receivables and cash
and cash equivalents in the statement of financial position.
Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate
method less provision for impairment.
Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss
on derecognition is recognised in profit or loss.
Impairment of financial assets
Impairment of financial assets is recognised on an expected credit loss (ECL) basis for the following assets:
financial assets measured at amortised cost
When determining whether the credit risk of a financial assets has increased significant since initial recognition
and when estimating ECL, the Association considers reasonable and supportable information that is relevant
and available without undue cost or effort. This includes both quantitative and qualitative information and
analysis based on the Association's historical experience and informed credit assessment and including forward
looking information.
The Association uses the presumption that a financial asset is in default when:
the other party is unlikely to pay its credit obligations to the Association in full, without recourse to the
Association to actions such as realising security (if any is held);
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BONDI SURF BATHERS’ LIFE SAVING CLUB