KU Financial Report
Notes to the Financial Statements
for the Financial Year Ended 31 December 2012
1. Corporate Information
The financial statements of KU Children’s Services (the company) for the year ended 31 December 2012 were
authorised for issue in accordance with a resolution of the Directors on 18 April 2013.
2. Summary of Accounting Policies
Statement of compliance
The Company has elected to apply AASB 1053 Application of Tiers of Australian Accounting Standards and
AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements in
advance of their effective dates. The early adoption of AASB 1053 and AASB 2010-2 has allowed the Company to
remove a number of disclosures relating to financial instruments and business combinations.
The financial report is a Tier 2 general purpose financial report which has been prepared in accordance with
Australian Accounting Standards – Reduced Disclosure Requirements, other authorative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
A statement of compliance with IFRS cannot be made due to the application of not for profit sector specific
requirements contained in the Australian Accounting Standards.
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 value s of the consideration given in exchange for assets. All amounts are
presented in Australian dollars.
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 office 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 office 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
40 years
• Buildings – fixtures and fittings
4-10 years
• Leasehold Improvements
lease term to 40 years
• Furniture and office equipment
4-10 years
• Motor vehicles
6.7 years
The Company reviews its estimate of the useful lives of leasehold improvements at each reporting date, based
on the period over which an asset is expected to be available for use by the Company. Where the useful life
extends beyond the leased period for the asset, useful life is determined on a reasonable expectation of the
period over which the Company will continue to have use of the asset. Where the renewal of the lease is
uncertain, the Company determines the useful life to be the contracted lease period.
Continues...
117th Annual Report 2012
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