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