KU Financial Report
Notes to the Financial Statements
For the financial year ended 31 December 2008
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 . Details of the impact of the adoption of these new accounting standards are set out in the individual accounting policy notes set out below . The Company has also adopted the following Standards as listed below which only impacted on the Company ’ s financial statements with respect to disclosure :
• AASB 101 ‘ Presentation of Financial Statements ( revised October 2006 )
• AASB 7 ‘ Financial Instruments : Disclosures
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 2 April 2009 .
Basis of preparation The financial report has been prepared on the basis of historical cost , except for the revaluation of certain 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 6,570 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 consideration is deferred , cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition .
Depreciation is provided on plant , furniture and equipment , motor vehicles and computers , including freehold buildings but excluding land and buildings on leased property . Depreciation is calculated on a straight line basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value . The estimated useful lives , residual values and depreciation method are reviewed at the end of each annual reporting period .
24 KU Children ’ s Services