Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.2 Basis of accounting preparation and measurementThe accrual basis of accounting has been applied in the preparation of these financial statementswhereby assets, liabilities, equity, income and expenses are recognised in the reporting period to whichthey relate, regardless of when cash is received or paid.These financial statements are presented in Australian dollars, the functional and presentation currencyof Parks Victoria.In the application of AASs management is required to make judgements, estimates and assumptionsabout carrying values of assets and liabilities that are not readily apparent from other sources. Theestimates and associated assumptions are based on historical experience and various other factors thatare believed to be reasonable under the circumstance, the results of which form the basis of making thejudgements. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only thatperiod or in the period of the revision and future periods if the revision affects both current and futureperiods.These financial statements have been prepared in accordance with the historical cost convention except for:❚ non-current physical assets which, subsequent to acquisition, are measured at a re-valued amountbeing their fair value at the date of the revaluation less any subsequent accumulated depreciationand subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that thecarrying amounts do not materially differ from their fair value;❚ the fair value of an asset other than land is generally based on its depreciated replacement value;❚ available-for-sale investments which are measured at fair value with movements reflected in equityuntil the asset is derecognisedHistorical cost is based on the fair values of the consideration given in exchange for assets.Accounting policies are selected and applied in a manner which ensures that the resulting financialinformation satisfies the concepts of relevance and reliability, thereby ensuring that the substance of theunderlying transactions or other events is reported.The accounting policies set out below have been applied in preparing the financial statements for theyear ended 30 June 2010 and the comparative information presented for the year ended 30 June 2009.Parks Victoria - Annual Report 2009-10 59