Speech Pathology Australia Annual Report 2020

Notes to the financial statements

1 Nature of operations The Speech Pathology Association of Australia Ltd principal activities were in relation to being the professional association for the speech pathology profession in Australia. 2 General information and statement of compliance The general-purpose financial statements of the Company have been prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board - Reduced Disclosure Requirements. A Statement of Compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) cannot be made due to the Company applying not-for-profit specific requirements contained in the Australian Accounting Standards. The Speech Pathology Association of Australia Ltd is a Public Company limited by guarantee incorporated and domiciled in Australia. The address of its registered office and its principal place of business is Level 1, 114 William Street, Melbourne, VIC, Australia. The financial statements for the year ended 31 December 2020 were approved and authorised for issue by the Board of Directors on 19 March 2021. 2.1 Impact of COVID-19 On 16 March 2020 a state of emergency was declared in Victoria due to the global pandemic COVID-19 virus, known as coronavirus. A state of disaster was subsequently declared on 2 August 2020. To contain the spread of the virus and to prioritise the health and safety of our communities various restrictions have been announced and implemented by the state government, which in turn has impacted the manner in which businesses operate, including The Speech Pathology Association of Australia Ltd. During the year, COVID-19 has had a material impact on the operations of the Company and as a consequence has results in a number of material impacts on the performance of the Company as well as the judgements and estimates used in assessing balances. The Company also deferred its 2020 National Conference to 2021 and negotiated for the deposit to be used for the 2021 National Conference without penalty to the Company. By deferring the 2020 National conference, the Company’s 2020 revenue is estimated to decrease by circa $567,000, with a corresponding decrease in expenses of circa $554,000 In response, the Company transferred to remote working/ conferencing where possible, placed restrictions on non-essential work, performed COVID-19 testing and implemented work from home arrangements where appropriate. The key impacts on the performance is summarised as follows: Revenue and other income The Company was eligible to receive a cashflow boost of $100,000 as a government subsidy. The Company was unable to host its conference in 2020, while its level of interest income decreased in line with the decrease in the interest rate.

Expenses The Company's daily activities were impacted by the pandemic. This resulted in direct and indirect costs being included, such as additional staffing costs for new or expanded services, additional supplies and consumables for staff. Similarly, cost reductions have occurred such as reductions in the form of payroll tax relief COVID-19 forced the cancellation of a number of instances of planned leave by staff. Additionally, staff have been unable to take leave during the Victorian state lockdown. As a result, the leave provisions, together with other initiatives have increased by $128,000. 3 New or amended Accounting Standards and Interpretations adopted The company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 4 Summary of accounting policies 4.1 Overall considerations The significant accounting policies that have been used in the preparation of these financial statements are summarised below. The financial statements have been prepared using the measurement bases specified by Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below 4.2 Revenue consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability. totalling circa $82,000. Employee provisions The Company recognises revenuse as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the

26 2020 ANNUAL REPORT Speech Pathology Australia