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