32 NEWSBOYS FOUNDATION ANNUAL REPORT 2017 NEWSBOYS FOUNDATION FINANCIAL REPORT (h) Income tax The Foundation, being a charitable institution, is exempt from income tax in accordance with Section 50-5 of the Income Tax Assessment Act. (i) Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. (j) Plant and equipment Items of plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation is recognised in the statement of comprehensive income on a straight-line basis over the estimated useful lives of each part of an item of plant and equipment. The estimated useful lives for the current and comparative periods are as follows: Office Machines 5 years Office Furniture 5 years Depreciation methods, useful lives and residual values are reviewed at each reporting date. (k) Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of comprehensive income on a straight-line basis over the period of the lease. (l) Employee benefits Liabilities for wages and salaries, including non- monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid, inclusive of on costs, when the liabilities are settled. The expense for non-accumulating sick leave is recognised when the leave is taken and measured at the rates paid or payable. (m) Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 2017 2016 $ $ 2. Investment revenue Interest revenue 51,319 43,631 Dividend and distribution revenue 866,781 888,275 Franked credits received 254,425 226,418 1,172,525 1,158,324 3. Other expenses Rental 43,563 43,190 Administration 31,164 23,186 Other 35,838 40,519 110,565 106,895 4. Auditor’s remuneration Audit services Grant Thornton Audit Pty Ltd: Fees in respect of the audit of the 2017 financial report amounted to $5,000 (2016: $5,000). Note: These fees have not been accrued in 2017. 5. Cash and cash equivalents Bank balances 53,521 53,893 Deposits at call 2,412,643 2,324,812 2,466,164 2,378,705 Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates based on the average value of monies held would have varied the profit by $21,537. 6. Receivables Current Dividends and distributions receivable 191,502 167,360 GST receivable 2,569 1,790 Franked credits receivable 254,428 259,171 448,499 428,321