KU Financial Report
Notes to the Financial Statements
Continued...
The following significant accounting policies have been adopted in the preparation and presentation of the financial
report:
a) Property, plant and equipment
Land and buildings, leasehold improvements, 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 furniture and equipment, motor vehicles and computers, including freehold and
leasehold buildings but excluding land. 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.
The following estimated useful lives are used in the calculation of depreciation:
• Buildings
• Buildings – fixtures and fittings
• Leasehold Improvements
• Plant, furniture and equipment
• Motor vehicles
40 years
4-10 years
40 years
4-10 years
6.7 years
b) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave and rostered days off when it is probable that settlement will be required and they are capable of
being measured reliably.
Liabilities recognised in respect of employee benefits expected to be settled within 12 months are measured
using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are
measured as the present value of the estimated future cash outflows to be made by the company in respect of
services provided by employees up to reporting date.
The Company pays contributions to certain defined contribution plans. Contributions are recognised in profit or
loss in the periods during which services are rendered by employees.
c) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of
the cost of acquisition of an asset or as part of an item of expense; or
ii) for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified
as operating cash flows.
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KU Children’s Services