118 118 AUSTRALIAN SPORTS COMMISSION ANNUAL REPORT 2016–17 FINANCIAL PERFORMANCE AUSTRALIAN SPORTS COMMISSION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2017 1.15 Intangibles The Commission’s intangibles comprise purchased and internally-developed software. Purchases of intangibles are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than the threshold of the asset’s sub-class, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Commission’s software are 3 to 7 years (2016: 3 to 7 years). All software assets were assessed for indications of impairment as at 30 June 2017. 1.16 Inventories Inventories held for sale are valued at the lower of cost and net realisable value. Inventories held for distribution are valued at cost, adjusted for any loss of service potential. Inventories acquired at no cost or for nominal consideration are initially measured at current replacement cost at the date of acquisition. All inventories are expected to be sold or distributed in the next 12 months. 1.17 Taxation The Commission is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses, liabilities and assets are recognised net of GST except: where the amount of GST incurred is not recoverable from the Australian Taxation Office; and for receivables, payables and commitments. 1.18 Grants Grant expenses and liabilities are recognised to the extent that: (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. Where some or all of a grant is required to be repaid, the Commission recognises the amount to be repaid, or due to be repaid as: (i) a reduction in grant expenses if the repayment of grant monies arises in the same financial year that the grant expense was incurred; or (ii) an increase in income if the grant expense was incurred in a prior financial year.