38 OPERA TIONAL AND FINANCIAL REPOR T NO TES T O AND FORMING P AR T OF THE A CCOUNT S The accounting policies set out below have been applied in preparing the fnancial statements and are consistent with those applied in previous years R evenue recognition R evenue is recognised and measured at the fair value of the consideration received or receivable to the e xtent that it is probable that the economic benefts will fow to the entity and the revenue can be reliably measured The following specifc recognition criteria must also be met before revenue is recognised Membership subscriptions Membership subscriptions are recognised as revenue in the year to which they relate Interest revenue R evenue is recognised as interest accrues using the efective interest method This is a method of calculating the amortised cost of a fnancial asset and allocating the interest income over the relevant period using the efective interest rate which is the rate that e xactly discounts estimated future cash receipts through the e xpected life of the fnancial asset to the net carrying amount of the fnancial asset Cash and T erm deposits Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and term deposits which have a term of 3 months These deposits do not relate to short term operational funds and are disclosed as term deposits T rade and other receivables T rade receivables which generally have 3060 day terms are recognised initially at fair value and subsequently measured at amortised cost using the efective interest method less any allowance for impairment Collectability of trade receivables is reviewed on an ongoing basis at an operating unit level Individ ual debts that are known to be uncollectible are written of when identifed An impairment provision is recognised when there is objective evidence that the Association will not be able to collect the receivable Financial difculties of the debtor default payments or debts more than 60 days overdue are considered objective evidence of impairment The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash fows discounted at the original efective interest rate Income tax and other tax es The Association is e x empt from Income T ax under Section 5040 of the Income T ax Assessment Act 1997 R evenues e xpenses and assets are recognised net of GS T e x cept when the GS T incurred on purchase of goods and services is not recoverable from the taxation authority in which case the GS T is recognised as part of the cost of acquiring an asset or as part of an e xpense item as applicable and receivables and payables which are stated with the amount of GS T included