3. Critical accounting judgements and key
sources of estimation uncertainty
There has been a change in the method of recognising income and
expenses on a gross rather than a net basis. This has resulted in an
additional $11,751,393 of income and expense in the prior year which
has had a nil effect on the Income Statement surplus. In the application of A-IFRS management is required to make
judgments, estimates and assumptions about carrying values
of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to
be reasonable under the circumstance, the results of which form
the basis of making the judgments. Actual results may differ from
these estimates.
o) Change in method of recognising income,
expense, cash and government funding liability
There has been a change in the method of recognising cash and
government funding on a gross rather than a net basis. This has resulted
in an additional $1,212,342 of cash and government funding liability in
the prior year which has had a nil effect on the net asset balance. This
also resulted in an additional $13,821,020 of reported cash inflows and
cash outflows in the prior year.
4. Surplus from operations
a) Revenue
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only
that period, or in the period of the revisions and future periods if the
revision affects both current and future periods.
2007 2006
$ $
Revenue from operations consisted of the following items:
Government funding 23,840,275 20,974,464
Parents’ fees 26,587,047 24,853,316
Management fees 10,830,370 8,581,764
Gross fundraising income 913,049 715,355
Interest revenue - bank deposits 426,785 398,205
Dividends received 405,981 563,672
Sales of publications and courses 16,745 8,379
Sponsor support 17,000 17,000
210,280 212,343
- 642,011
567,639 517,440
63,815,171 57,483,949
2,125 (18,496)
(488,281) (442,767)
(706,132) (612,084)
(26,007) (26,057)
Rent revenue: Operating lease revenue:
Reversal of prior period revaluations on derecognition of ‘available-for-sale’ financial asset
Other revenue
b)
Surplus
Surplus has been arrived at after charging the following losses:
Gain/(Loss) on disposal of property, plant and equipment
Depreciation of non-current assets
Operating lease rental expenses:
Minimum lease payments
Net bad a