KU Financial Report
Notes to the Financial Statements for the Financial Year Ended 31 December 2013
1 . Corporate Information
The financial statements of KU Children ’ s Services ( the Company ) for the year ended 31 December 2013 were authorised for issue in accordance with a resolution of the Directors on 6 March 2014 .
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 values 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 or 10 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 . The useful life of leasehold improvements has been assessed to equal the lease term , or 10 years where no lease term was applicable .
118th Annual Report 2013