Speech Pathology Australia Annual Report 2020

Sales revenue Events, fundraising and raffles are recognised when received or receivable. Capital grants When the Company receives a capital grant, it recognises a liability for the excess of the initial carrying amount of the financial asset received over any related amounts (being contributions by owners, lease liability, financial instruments, provisions, revenue or contract liability arising from a contract with a customer) recognised under other Australian Accounting Standards. The Company recognises income in profit or loss when or as the Company satisfies its obligations under the terms of the grant. Member Fees and Services Revenue from provision of services is recognised in the accounting period in which the services are provided. The membership year runs from 1 July to 30 June. Memberships are payable annually and are not prorated. Revenue is recognised over time as the subscription and membership year unwinds. Interest revenue Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Grant revenue Funding received under a legally enforceable agreement that contains sufficiently specific performance obligations is recognised as revenue from contracts with customers under AASB 15 using the 5-step model. If funding is not received under an enforceable agreement or does not contain sufficiently specific performance obligations, it is recognised in profit or loss when the Company initially recognises the associated asset, after having recognised any related amounts as required by AASB 1058. Statement of financial position balances relating to revenue recognition Contract assets and liabilities Where amounts received from customers (members) are based on the delivery of specified services or fulfillment of conditions established in the contract, the amounts recognised as revenue in a given period do not necessarily coincide with the amounts billed to or certified by the customer. When a performance obligation is satisfied by transferring a promised good or service to the customer before the customer pays consideration or the before payment is due, the Company presents the contract as a contract asset, unless the Company's rights to that amount of consideration are unconditional, in which case the Company recognises a receivable. When an amount of consideration is received from a customer prior to the entity transferring a good or service to the customer, the Company presents the contract as a contract liability. 4.3 Operating expenses Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin.

4.4 Intangible assets Recognition of other intangible assets Acquired intangible assets

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and install the specific software. Subsequent measurement All intangible assets are accounted for using the cost model whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives, as these assets are considered finite. Residual values and useful lives are reviewed at each reporting date. In addition, they are subject to impairment testing. The following useful lives are applied: • software: 3-5 years Amortisation has been included within depreciation and amortisation. Subsequent expenditures on the maintenance of computer software and brand names are expensed as incurred. When an intangible asset is disposed of, the gain or loss on disposal is determined as the difference between the proceeds and the carrying amount of the asset and is recognised in profit or loss within other income or other expenses. 4.5 Investment property Investment properties are properties held to earn rentals and/ or for capital appreciation and are accounted for using the cost model. Rental income and operating expenses from investment property are reported within revenue and other expenses respectively. Investment properties are derecognised when disposed of or when there is no future economic benefit expected. Buildings, plant and other equipment (comprising fittings and furniture) are initially recognised at acquisition cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Company’s management. Buildings, plant and other equipment are subsequently measured using the cost model, cost less subsequent depreciation and impairment losses. Depreciation is recognised on a straight-line basis to write down the cost less estimated residual value of buildings, plant and other equipment. The following useful lives are applied: • buildings: 25-50 years • plant and equipment: 3-20 years • leasehold improvements: 3-5 years • computer hardware: 3-7 years. In the case of leasehold property, expected useful lives are determined by reference to comparable owned assets or over the term of the lease, if shorter. Material residual value estimates and estimates of useful life are updated as required, but at least annually. Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within other income or other expenses. 4.6 Property, plant and equipment Buildings, plant and other equipment

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2020 ANNUAL REPORT Speech Pathology Australia