Indigenous Land Corporation gpo box 652 Adelaide sa 5001

Resort Occupancy – Changes in market conditions in the tourism sector can have a significant impact on resort occupancy. Such changes may include economic conditions in key source markets, currency fluctuations and available airline capacity. A reduction in occupancy from the rates estimated in the operating forecast would result in a further impairment.

No other accounting assumptions or estimates have been identified that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next accounting period.

1.6 New accounting standards

Adoption of new Australian Accounting Standards requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

New standards, revised standards, interpretations and amending standards, issued prior to the signing of the statements by the ILC Chief Executive Officer and Chief Financial Officer, applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Corporation.

Future Australian Accounting Standards requirements

New standards, revised standards, interpretations and amending amendments to standards, issued prior to the signing of the statements by the ILC Chief Executive Officer and Chief Financial Officer, which are applicable to future reporting period are not expected to have a financial impact on the Corporation.

1.7 Revenue

The revenues described in this note are revenues relating to the core operating activities of the Corporation.

Interest is recognised using the effective interest rate method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Revenue from the sale of goods is recognised when:

• the risks and rewards of ownership have been transferred to the buyer;

• the Corporation retains no managerial involvement nor effective control over the goods;

• the revenue and transactions costs can be reliably measured; and

• it is probable that the economic benefits associated with the transaction will flow to the Corporation.

See Note 1.22 in relation to recognition of income from biological assets.

Revenue from rendering of services is recognised by reference to the stage of completion of rendering of service at the reporting date. The revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

• the probable economic benefits from the transaction will flow to the Corporation.

1.8 Gains

Gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.

Contribution of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition.

1.9 Revenue from Government

Funding received or receivable from agencies (appropriated to the agency as a CAC Act body payment item for payment to the Corporation) is recognised as Revenue from Government unless they are in the nature of an equity injection or loan.

Any amounts received under the Parental Leave Payment Scheme by the Corporation not yet paid to employees are presented as cash and liability (payable). The Corporation received $63,561(2013 $98,300) under this scheme for the reporting period.

Revenue from Government is disclosed in Note 8A.

1.10 Transactions with the Government as owner

Amounts that are designated as equity injections for a year are recognised directly in contributed equity in that year.

Net assets received or relinquished to another Australian Government agency or authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. Contributions by, or distribution to, owners are disclosed at Note 14.

1.11 Employee benefits