ANNUAL REPORT 2005 - MVCB - Murray Valley Citrus Board

MURRAY VALLEY CITRUS BOARD
NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE
YEAR ENDED 30 JUNE 2005
1. SUMMARY OF ACCOUNTING POLICIES
(i) Basis of Accounting
The financial report is a general purpose financial report which has been prepared in
accordance with applicable Australian Accounting Standards, Urgent Issues Group
Consensus Views and other authorative pronouncements of the Australian Accounting
Standards Board and the requirements of the Financial Management Act 1994. The
financial report is prepared on an accruals basis and is based on historical costs and does
not take into account changing money values or, except where stated, current valuations
of non-current assets. The accounting policies adopted for the financial year are
consistent with those of the previous financial year unless otherwise stated. The
following is a summary of significant accounting policies adopted by the Board in the
preparation of the financial report.
(ii) Plant and Equipment
Fixed Assets include plant, equipment, furniture and motor vehicles that are shown at
cost unless otherwise stated. Items with a cost value in excess of $300 and a useful life to
the Board of more than one year are capitalised. All other assets acquired are expensed.
Assets acquired at no cost or for nominal consideration, are recognised at their fair value
at the date of acquisition. Depreciation has been provided over the fixed asset's useful life
using the Diminishing Value Method. The methods 2004-2005 are the same as 2003-
2004. Fixed assets are depreciated at the following rates.
2005 2004
Plant and Equipment 11.25% - 37.5% 11.25% - 37.5%
Motor Vehicles 22.50% 22.50%
(iii) Rounding Off
All amounts shown in the Financial Statements are expressed to the nearest dollar.
(iv) Investments
Investments are valued at cost. Interest revenue from investments is brought to account
when it is earned.
(v) Revenues
- Levy Revenue is recognised upon the receipt from the receiver's self-assessment.
- Industry Project Funding is mainly funding provided by Commonwealth grants to
assist meeting general and specific citrus project expenses. The funds are recognised
when payment is received.
- Sale of Goods, the revenue is recognised when control of the goods has passed to the
buyer. Credit terms are within 30 days of month end.
- Interest Revenue includes interest and other revenue earned during the financial year
from bank term deposits. It is recognised on an accrual basis, based upon control of
the right to receive.
- Proceeds from disposal of assets are recognised at the date of disposal and is
determined after deducting from the proceeds the carrying value of the asset at the
time.
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