17.
ECONOMIC DEPENDENCY
As disclosed at note 4 a large source of revenue is government funding. This funding predominately supports programs for early
childhood education and care.
18.
SEGMENT INFORMATION
The company operated in one business segment, being the provision of early childhood education and care services and in one
geographical location being Australia.
19.
RELATED PARTY disclosures
There were no related party transactions.
20.
a)
2007 2006
$ $
NOTES TO THE CASH FLOW STATEMENT
Reconciliation of Surplus for the period to Net Cash Flows From Operating Activities
Surplus for the period
1,764,008 2,760,891
488,281 442,767
(2,125) 18,496
- (642,011)
Dividends received (405,981) (563,672)
Interest received (426,785) (398,205)
(2,744,595) 669,857
3,342,880 817,714
623,744 739,375
2,639,427 3,845,212
14,104,293 12,776,412
Depreciation and amortisation of non-current assets
(Gain)/loss on sale of non-current assets
Gain on investment securities
Changes in net assets and liabilities:
(Increase)/decrease in current receivables and other assets
Increase in current payables and other liabilities
Increase in provisions
Net cash from operating activities
b)
Reconciliation of Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents include cash at bank
and on hand. Cash and cash equivalents at the end of the financial year as shown in the cash
flow statement is reconciled to the related items in the balance sheet as follows:
Cash and cash equivalents
Cash includes $11,083,938 (2006: $7,467,491) which is held for disbursement in accordance with government funding agreements,
including to organisations other than KU (note 11).
21.
a)
FINANCIAL INSTRUMENTS
Financial Risk Management Objectives
The company does not enter into or trade financial instruments for speculative purposes. The company does not use derivative
financial instruments.
The company’s investments expose it primarily to the financial risks of changes in interest rate and market fair value adjustments.
b)
Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which revenues and expenses are recognised, in respect of each class of financial asset, financial
liability and equity instruments are disclosed in note 2 to the financial statements.
32
KU’s 112 th Annual Report 2007