FINANCIALS 2018
Notes to the Financial Statements
for the Financial Year Ended 31 December 2018
1. Corporate Information
Standard requires the portion of the change in fair value
that relates to the entity’s own credit risk to be presented
in OCI (unless it would create an accounting mismatch).
New simpler hedge accounting requirements are
intended to more closely align the accounting treatment
with the risk management activities of the entity. New
impairment requirements use an ‘expected credit loss’
(‘ECL’) model to recognise an allowance.
The financial statements of KU Children’s Services
(the Company) for the year ended 31 December
2018 were authorised for issue in accordance with a
resolution of the Directors on 26 March 2019.
The Company is incorporated as a company limited
by guarantee. The financial statements are presented
in Australian dollars, which is KU Children’s Services’
functional and presentation currency.
Impairment is measured using a 12-month ECL method
unless the credit risk on a financial instrument has
increased significantly since initial recognition in which
case the lifetime ECL method is adopted.
2.1 New or Amended Accounting Standards
and Interpretations adopted
KU
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For trade receivables, a simplified approach to
measuring expected credit losses using a lifetime
expected loss allowance is available. The expected
credit losses is calculated based on a provision matrix
which takes into consideration historical data and any
forelooking events. The adoption of AASB 9 has not
had a material impact on the Company’s results. The
adoption of AASB 9 did not result in any change to
the opening net assets or the opening retained profits
as at 1 January 2018.
The Company has adopted all of the new or amended
Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’) that are
mandatory for the current reporting period. Any new or
amended Accounting Standards or Interpretations that
are not yet mandatory have not been early adopted. The
following Accounting Standards and Interpretations are
most relevant to the Company:
The Company has adopted AASB 9 from 1 January
2018. The Standard introduced new classification and
measurement models for financial assets. A financial
asset shall be measured at amortised cost if it is held
within a business model whose objective is to hold assets
in order to collect contractual cash flows which arise on
specified dates and that are solely principal and interest.
A debt investment shall be measured at fair value
through other comprehensive income if it is held within
a business model whose objective is to both hold assets
in order to collect contractual cash flows which arise on
specified dates that are solely principal and interest as
well as selling the asset on the basis of its fair value. All
other financial assets are classified and measured at fair
value through profit or loss unless the entity makes an
irrevocable election on initial recognition to present gains
and losses on equity instruments (that are not held-
for-trading or contingent consideration recognised in a
business combination) in other comprehensive income
(‘OCI’). Despite these requirements, a financial asset
may be irrevocably designated as measured at fair value
through profit or loss to reduce the effect of, or eliminate,
an accounting mismatch. For financial liabilities
designated at fair value through profit or loss, the
2.2 New and Revised Australian Accounting
Standards and Interpretations on issue
but not yet effective
At the date of authorisation of the financial
statements, the Company has not applied the
following new and revised Australian Accounting
Standards, Interpretations and amendments that
have been issued but are not yet effective:
a) AASB 16 Leases is effective for reporting periods
beginning 1 January 2019. This Standard is
expected to be initially adopted for the financial
period ending 31 December 2019.
b) AASB 1058 Income for Not-For-Profit Entities is
effective for annual periods beginning on or after
1 January 2019. This Standard is expected to be
initially adopted for the financial period ending 31
December 2019.
AASB 1058 clarifies and simplifies the income
recognition requirements that apply to not-
for-profit (NFP) entities, in conjunction with
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