KU Annual Report 2007 - Page 24

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2007 1. Adoption of new and revised Accounting Standards In the current year, the company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. At the date of authorisation of the financial report, the following Standards and Interpretations were on issue but not yet effective: • AASB Interpretation 11 ‘AASB 2 – Group and Treasury Share Transactions’ Effective for annual reporting periods beginning on or after 1 March 2007 • AASB 2007-1 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 11’ Effective for annual reporting periods beginning on or after 1 March 2007 • AASB Interpretation 12 ‘Ser vice Concession Arrangements’ Effective for annual reporting periods beginning on or after 1 January 2008 • AASB 2007-2 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 12’ Effective for annual reporting periods beginning on or after 1 January 2008 • AASB 2007-4 ‘Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments’ Effective for annual reporting periods beginning on or after 1 July 2007 • AASB Interpretation 13 ‘Customer Loyalty Programmes’ Effective for annual reporting periods beginning on or after 1 July 2008 • AASB 2007-07 ‘Amendments to Australian Accounting Standards’ Effective for annual reporting periods beginning on or after 1 July 2007 • AASB 8 ‘Operating Segments’ Effective for annual reporting periods beginning on or after 1 January2009 • AASB Interpretation 14 ‘AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’ Effective for annual reporting periods beginning on or after 1 January 2008 • AASB 123 ‘Borrowing Costs’ – revised standard Effective for annual reporting periods beginning on or after 1 January 2009 • AASB 2007-6 ‘Amendments to Australian Accounting Standards arising from AASB 123’ Effective for annual reporting periods beginning on or after 1 January 2009 The directors of the company anticipate that the adoption of these Standards and Interpretations in future periods will have no material financial impact on the financial statement of the company, as the issue of Interpretation 10, 11, 12 and 14 and AASB 123 do not affect its present policies and operations. 24 KU’s 112 th Annual Report 2007 The application of AASB 101 (revised), AASB7, AASB8, AASB 2005-10, AASB 2005-7 and AASB 2007-4 will not affect any of the amounts recognised in the financial statements, but will change the disclosures presently made in relation to the company’s financial instruments and the objectives, policies and processes for managing capital. These Standards and Interpretations will be first applied in the financial report of the company that relates to the annual reporting period beginning after the effective date of each pronouncement, which in most cases will be the company’s annual reporting period beginning on 1 January 2008. 2. Summary of Accounting Policies Statement of Compliance The financial report is a general purpose financial report, which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law. Accounting Standards include Australian equivalents to International Financial Reporting Standards (‘A-IFRS’). A statement of compliance with IFRS cannot be made due to the application of not for profit sector specific requirements contained in the A-IFRS. The financial statements were authorised for issue by the directors on 16th April 2008. Basis of Preparation The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The following significant accounting policies have been adopted in the preparation and presentation of the financial report: a) Company Limited by Guarantee The company is incorporated as a company limited by guarantee. In accordance with the Constitution every member of the company undertakes to contribute to the assets of the Company in the event of it being wound up, while he/she is a member or within one year after he/she ceases to be a member, the sum of $2. The company has 6,327 members. b) Payables Trade payables and other accounts payable are recognised when the company becomes obliged to make future payments resulting from the purchase of goods and services. c) Property, Plant and Equipment Land and buildings, plant, furniture and equipment, motor vehicles and computers are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase