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Wool Stocktake : AWI Annual Report 2008-09
NOTE 1: Summary of significant accounting policies (continued) Revenue is measured at the fair value of the consideration received or receivable. Revenue for the sale of goods is recognised when goods have been delivered to a customer and the risks and rewards of ownership have transferred to the customer. Revenue from the rendering of a service is recognised by reference to the stage of completion of contracts or other agreements to provide services. Revenue for the disposal of non current assets is recognised when control of the asset has passed to the buyer. Wool levies and government grants are brought to account when received or receivable from the Federal Government. Reasonable assurance that the grant will be received occurs when the Group complies with all conditions outlined in the Statutory Funding Agreement. Invoiced licence fees are deferred as a liability on the balance sheet and brought to account as revenue over the 12 months of the licence period. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. (i) Parent entity Australian Wool Innovation Limited is exempt from income tax in Australia under Section 50-40 of the Income Tax Assessment Act 1997. (ii) Consolidated entity The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. Australian Wool Innovation Limited and its wholly owned Australian controlled entities have not implemented the tax consolidation legislation. Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases (net of any incentives received from the lessor) and are charged to the income statement on a straight line basis over the period of the lease.
AWI Annual Report 2007-08
AWI Annual Report 2009-10