KU Annual Report 2009 | Page 28

KU Financial Report Notes to the Financial Statements Continued... 4. Critical accounting judgements and key sources of estimation uncertainty The following are the critical judgements (apart from those involving estimations, which are dealt with below), that management has made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: Employee entitlements: Management judgement is applied in determining the following key assumptions used in the calculation of long service leave at balance date: • future increases in wages and salaries; • future on cost rates; and • experience of employee departures and period of service. 5. (Deficit) / Surplus from operations 2009 $ (a) Revenue Revenue from operations consisted of the following items: Government funding Parents’ fees Management fees Gross fundraising income Interest revenue – bank deposits Distributions received Sales of publications and courses Sponsor support Operating rental lease revenue Other revenue (b) (Deficit) / Surplus (Deficit) / Surplus has been arrived at after charging the following losses: Gain/(Loss) on disposal of property, plant and equipment Depreciation of property, plant and equipment Operating lease rental expenses: Minimum lease payments Net bad and doubtful debts arising from: Other entities 28,125,923 33,126,386 15,362,341 665,609 162,160 138,931 34,069 17,246 70,037 1,299,730 25,197,782 29,594,431 12,345,736 756,388 394,294 420,036 5,923 17,000 247,386 967,684 79,002,432 69,946,660 (6,739) (669,189) (15,823) (550,664) (697,736) (780,699) (28,741) (15,149) (c) Deficit for the year The total reported deficit for the year is $ 48,086 (2008 Deficit: $2,929,294). 28 KU Children’s Services 2008 $