h )
i )
Where an impairment loss subsequently reverses , the carrying amount of the asset ( cash-generating unit ) is increased to the revised estimate of its recoverable amount , but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset ( cashgenerating unit ) in prior years . A reversal of an impairment loss is recognised in profit or loss immediately unless the relevant asset is carried at fair value , in which case the reversal of the impairment loss is treated as a revaluation increase .
Leased Assets Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee . All other leases are classified as operating leases .
Company as Lessee Operating lease payments are recognised as an expense on a straight-line basis over the lease term , except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed .
Company as Lessor
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease .
Lease Incentives
In the event that lease incentives are received to enter into operating leases , such incentives are recognised as a liability . The aggregate benefits of incentives are recognised as a reduction of rental expense on a straight-line basis , except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed .
Revenue
Revenue is measured at the fair value of the consideration received or receivable
Fundraising Fundraising is recorded on a cash basis .
Rent Rental income is brought to account as earned .
Rendering of Services
Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract .
Government Funding Government funding agreements are contracted agreements with the Government to provide a variety of early childhood education and care programs in the community . They are received in the form of transfers of resources to the company in return for past or future compliance with certain conditions relating to the operating activities of the company . Nonreciprocal government funding monies , other than monies j )
k )
l ) held in trust , are credited to income when received in accordance with AASB 1004 “ Contributions ”. Other service revenues from government agencies are recognised upon delivery of services in accordance with AASB 118 “ Revenue ”.
Dividend and interest revenue
Dividend revenue from investments is recognised when the shareholder ’ s right to receive payment has been established .
Interest revenue is accrued on a time basis , by reference to the principal outstanding and at the effective interest rate applicable , which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial assets to that asset ’ s net carrying amount .
Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand and demand deposits . Cash equivalents are short-term , highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in nature .
Investment Property Investment property , which is property held to earn rentals and / or capital appreciation , is carried at cost , including transaction costs .
Income Tax The company is exempt from income tax under s50-5 of the Income Tax Assessment Act , as it is an income tax exempt charitable entity . As a consequence , there is no income tax attributable to the operating result .
m ) General reserve
n )
Salary Recovery Fund
Excess or under recoveries of wages and salaries expenditure re-charged by Central Office or Centres are transferred to the Salary Recovery Fund . The Board of Directors has resolved that the balance of this reserve should not exceed $ 800,000 as at 31 December in any year .
Fundraising Reserve
Net proceeds of fundraising are retained in the Fundraising Reserve .
Donations in Kind
Over the course of the year the company has received donations in kind from a number local councils in the form of the right to use premises at discounted rent . The company is of the view that it is not feasible to fair value the services received accurately and as such it has not brought to account discounted rent as a donation through its income statement .
26 KU ’ s 112 th Annual Report 2007