b'EQUESTRIAN AUSTRALIA LIMITED ABN 19 077 455 755 EQUESTRIAN AUSTRALIA LIMITED ABN 19 077 455 755NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20191.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)recognition in which case the lifetime ECL method is adopted. For receivables, a simplifiedapproach to measuring expected credit losses using a lifetime expected loss allowance is available.FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2018AASB 9 changes the classification of complex financial instruments, calculation of impairment losses in financial assets, and hedge accounting. The company has no complex financial instrumentsanddoesnotapplyhedgeaccounting.Asaresultthese changeshavenot materially impacted the company.The calculation of impairment losses impacts the way the company calculates the bad debts provision, now termed as the allowance for expected credit losses. The company applies the AASB 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables are grouped based on shared credit risk characteristics and the days past due.Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there are no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the company.The company has applied the exception under AASB 9 to not restate comparatives as the credit loss allowance under AASB 139 and AASB 9 did not result in material changes to the amounts previously reported.1Basis of preparation of the financial reportThese general purpose financial statements have been prepared in accordance with the CorporationsAct2001andAustralianAccountingStandardsandInterpretationsofthe Australian Accounting Standards Board. The Company is a not-for-profit company for financial reportingpurposesunderAustralianAccountingStandards.Materialaccountingpolicies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.The financial statements, except for the cash flow information, have been prepared on an accrualsbasisandarebasedonhistoricalcosts,modified,whereapplicable,bythe measurementatfairvalueofselectednon-currentassets,financialassetsandfinancial liabilities. Theamounts presentedin the financialstatementshavebeenroundedtothe nearest dollar. \x03\x0354'