Speech Pathology Australia Annual Report 2023

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. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. 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.

4.4 Investment property Investment properties are properties held to earn rentals and/or for capital appreciation and are accounted for using the cost model and depreciated using the straight line method over 40 years. 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. 4.5.1 Property, plant and equipment Plant and other equipment 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. 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: The residual value and useful life are reviewed and updated as required, but at least annually. Gains or losses arising on the disposal of 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. 4.5.2 Intangible assets Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period. • plant and equipment: 3–20 years • leasehold improvements: 3–5 years • computer hardware: 3–7 years.

4.3 Operating expenses Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin.

2023 Annual Report | Speech Pathology Australia 33