SPA Annual report 2018 FINAL. pdf

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 2018 were approved and authorised for issue by the Board of Directors on 15 March 2019. 3 Changes in accounting policies 3.1 Changes in accounting estimates During the current reporting period, the Company did not have any changes in accounting estimates. 3.2 New and revised standards that are effective for annual periods beginning on or after 1 January 2018 A number of new and revised standards became effective for the first time to annual periods beginning on or after 1 January 2018, however, AASB 9 Financial Instruments was of significance to the Company. Financial Instruments - Adoption of AASB 9 The Company has adopted AASB 9 Financial Instruments for the first time in the current year with a date of initial adoption of 1 January 2018.

As part of the adoption of AASB 9, the Company adopted consequential amendments to other follows accounting standards arising from the issue of AASB 9 as: • AASB 101 Presentation of Financial Statements requires the impairment of financial assets to be presented in a separate line item in the statement of profit or loss and other comprehensive income. In the comparative year, this information was presented as part of other expenses. • AASB 7 Financial Instruments: Disclosures requires amended disclosures due to changes arising from AASB 9, the disclosure have been provided for the current year. The key changes to the Company's accounting policy and the impact on these financial statements from applying AASB 9 are described below. Changes in accounting policies resulting from the adoption of AASB 9 have been applied retrospectively except the Company has not restated any amounts relating to classification and measurement requirements including impairment which have

been applied from 1 January 2018. Classification of financial assets

The financial assets of the Company have been reclassified into one of the following categories on adoption of AASB 9 based on primarily the business model in which a financial asset is managed and its contractual cash flow characteristics:

• Measured at amortised cost Impairment of financial assets

The incurred loss model from AASB 139 has been replaced with an expected credit loss model in AASB 9 for assets measured at amortised cost, contract assets and fair value through other comprehensive income. This has resulted in the earlier recognition of credit loss (bad debt provisions). Transition adjustments The move to the expected credit loss model under AASB 9 has had no impact on the provision for trade receivables at the adoption date. Classification of financial assets and financial liabilities The table below illustrates the classification and measurement of financial assets and liabilities under AASB 9 and AASB 139 at the date of initial application, 1 January 2018:

Classification under AASB 139

Classification under AASB 9

Carrying amount under AASB 139 $

Reclassification $ / Remeasurements $

Carrying amount under AASB 9 $

Financial Assets Cash and cash equivalent

Loans and receivables

Amortised cost

1,739,937

-

1,739,937

Trade and other receivables Loans and receivables

Amortised cost Amortised cost

93,898

-

93,898

Held to maturity

3,449,040

3,449,040

Financial assets

5,282,875

-

5,282,875

Total financial assets

Financial liabilities Trade payables

Other financial liabilities

Other financial liabilities

692,168

-

692,168

692,168

692,168

-

Total financial liabilities

19

2018 ANNUAL REPORT Speech Pathology Australia