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
Credit losses are measured as the present value of the difference between the cash flows due to the
Association in accordance with the contract and the cash flows expected to be received. This is applied using a
probability weighted approach.
Trade receivables
Impairment of trade receivables have been determined using the simplified approach in AASB 9 which uses an
estimation of lifetime expected credit losses. The Association has determined the probability of non-payment of
the receivable and multiplied this by the amount of the expected loss arising from default.
The amount of the impairment is recorded in a separate allowance account with the loss being recognised in
finance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is
written off against the associated allowance.
Where the Association renegotiates the terms of trade receivables due from certain customers, the new
expected cash flows are discounted at the original effective interest rate and any resulting difference to the
carrying value is recognised in profit or loss.
Other financial assets measured at amortised cost
Impairment of other financial assets measured at amortised cost are determined using the expected credit loss
model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12
months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime
losses are estimated and recognised.
Financial liabilities
The Association measures all financial liabilities initially at fair value less transaction costs, subsequently
financial liabilities are measured at amortised cost using the effective interest rate method.
The financial liabilities of the Association comprise trade payables, bank and other loans.
(g)
Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are
readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
(h)
Trade and other payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
services received by the Association during the reporting period which remain unpaid. The balance is
recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
12
141
117TH ANNUAL REPORT AND FINANCIAL STATEMENT 2023/24