Financial Report Template Page 28
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80NOTES TO THE FINANCIAL STATEMENTS
(CONT)
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONT.
than likely. The provision is established based on the Group’s
history of amounts not recovered over previous years.
determined using one or more valuation techniques. These
Disbursements that are yet to paid for are classified as Client
valuation techniques maximise, to the extent possible, the use
related disbursement creditors. Amounts received by Shine in
of observable market data.
relation to disbursement loans of its clients are disclosed as
To the extent possible, market information is extracted from either
Client related disbursements creditors.
the principal market for the asset or liability (i.e., the market with the
greatest volume and level of activity for the asset or liability) or, in
(f) Work in Progress
the absence of such a market, the most advantageous market
Work in progress represents costs incurred and profit recognised
available to the entity at reporting date (i.e., the market that
on client cases that are in progress and have not yet been
maximises the receipts from the sale of the asset or minimises
invoiced at the end of the reporting date. The recoverability of
the payment made to transfer the liability, after taking into account
these amounts is assessed by management and any amounts
transaction costs and transport costs).
in excess of the net recoverable value are provided for when
For non-financial assets, the fair value measurement also takes into
identified. Historical experience and knowledge of the client
account a market participant’s ability to use the asset in its highest
cases has been used to determine the net realisable value of
and best use or to sell it to another market participant that would
work in progress at balance date and also the classification
use the asset in its highest and best use.
between current and non current.
The fair value of liabilities and the entity’s own equity instruments
(g) Property, Plant and Equipment
(excluding those related to share based payment arrangements)
Each class of property, plant and equipment is carried at cost or
may be valued, where there is no observable market price in
fair value as indicated less, where applicable, any accumulated
relation to the transfer of such financial instrument, by reference to
depreciation and impairment losses.
observable market information where such instruments are held as
assets. Where this information is not available, other valuation
Plant and equipment
techniques are adopted and where significant, are detailed in the
Plant and equipment are measured on the cost basis and therefore
respective note to the financial statements.
carried at cost less accumulated depreciation and any
accumulated impairment. In the event the carrying amount of
(d) Revenue
plant and equipment is greater than the estimated recoverable
Revenue is recognised and measured at the fair value of the
amount, the carrying amount is written down immediately to the
consideration received or receivable to the extent that it is probable
estimated recoverable amount and impairment losses are
that economic benefits will flow to the Group and the revenue can
recognised either in profit or loss or as a revaluation decrease
be reliably measured. The following specific recognition criteria
if the impairment losses relate to a revalued asset. A formal
must also be met before revenue is recognised:
assessment of recoverable amount is made when impairment
i) Rendering of services
indicators are present (refer to Note 2(j) for details of impairment).
Subsequent costs are included in the asset’s carrying amount or
Revenue from the provision of legal services is recognised on an
recognised as a separate asset, as appropriate, only when it is
accrual basis in the year in which the legal service is provided and
probable that future economic benefits associated with the item
is calculated with reference to the professional staff hours incurred
will flow to the Group and the cost of the item can be measured
on each matter and on the basis that the stage of completion can
reliably. All other repairs and maintenance are recognised as
be reliably measured. Stage of completion is measured by
expenses in profit or loss during the financial period in which
reference to the time incurred to date as a percentage of the
they are incurred.
expected time for an outcome to be achieved.
Depreciation
ii) Interest revenue
The depreciable amount of all fixed assets including capitalised
Revenue is recognised as interest accrues using the effective
lease assets, is depreciated on a straight-line basis over the
interest rate method. This is a method of calculating the amortised
asset’s useful life to the company commencing from the time
cost of a financial asset and allocating the interest revenue over the
the asset is held ready for use. Leasehold improvements are
relevant year using the effective interest rate, which is the rate that
depreciated over the shorter of either the unexpired period of
exactly discounts estimated future cash receipts through the
the lease or the estimated useful lives of the improvements.
expected life of the financial asset to the net carrying amount of
The depreciation rates used for each class of depreciable
the financial asset.
assets are:
iii) Other revenue, including sundry disbursements are recognised
when the right to receive the income has been established.
Class of Fixed Asset
Depreciation Rate
2015
2014
All revenue is stated net of the amount of goods and services
tax (GST)
Fixtures and fittings
3%–100%
5–66.67%
Leased plant and equipment
20–25%
10–25%
(e) Disbursements
Make Good
20–50%
20–50%
Disbursements represent costs incurred during the course
Motor Vehicles
20–25%
20%
of a matter that are recovered from clients. A provision for non
recoverable disbursements is recognised to the extent that
Office and Computer Equipment
5–100%
7.5–66.67%
recovery of the outstanding receivable balance is considered less
SHINE CORPORATE LTD | FINANCIAL REPORT | 2015
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business