FINANCIALS 2018
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.
interest on the remaining balance of the liability.
Finance expenses are recognised immediately in
profit or loss, unless they are directly attributable to
qualifying assets, in which case they are capitalised
in accordance with the Company’s general policy
on borrowing costs.
Impairment of trade and other receivables
The Company has applied the simplified approach
to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the
expected credit losses, trade receivables have been
grouped based on days overdue. The amount of
expected credit losses is updated at each reporting
date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
Lease incentives
In the event that lease incentives are received to
enter into operating leases, such incentives are
recognised as a liability. The aggregate benefits of
incentives are recognised as a reduction of rental
expense on a straight-line basis, except where
another systematic basis is more representative of
the time pattern in which economic benefits from
the leased asset are consumed.
f) Impairment
The carrying values of property, plant and
equipment are reviewed for impairment at each
reporting date, with the recoverable amount
being estimated when events or changes in
circumstances indicate that the carrying value may
be impaired.
h) Revenue
Revenue is measured at the fair value of the
consideration received or receivable. Amounts
disclosed as revenue are net of discounts, refunds
and amounts collected on behalf of third parties.
The Company recognises revenue when the amount
of revenue can be reliably measured, it is probable
that future economic benefits will flow to the
Company and specific criteria have been met for
each of the Company’s activities as described below.
The recoverable amount of property, plant and
equipment is the higher of fair value less costs to
sell and value in use. Depreciated replacement
cost is used to determine value in use. Depreciated
replacement cost is the current replacement cost
of an item of plant and equipment less, where
applicable, accumulated depreciation to date,
calculated on the basis of such cost.
Fundraising
Fundraising is recorded when the income is
received or receivable.
g) Leased assets
Leases are classified as finance leases when the
terms of the lease transfer substantially all the risks
and rewards incidental to ownership of the leased
asset to the lessee. All other leases are classified as
operating leases.
Rendering of services
Revenue from a contract to provide services is
recognised by reference to the stage of completion
of the contract.
Company as lessee
Operating lease payments are recognised as an
expense on a straight-line basis over the lease term,
except where another systematic basis is more
representative of the time pattern in which economic
benefits from the leased asset are consumed.
Government funding - operational
Government funding agreements are contracted
agreements with the Government to provide a
variety of early childhood education and care
programs in the community. They are received in
the form of transfers of resources to the Company
in return for past or future compliance with certain
conditions relating to the operating activities of
the Company. Non-reciprocal government funding
monies, other than monies held in trust, are
credited to income when control is transferred in
accordance with AASB 1004 Contributions. Other
service revenues from government agencies are
recognised upon delivery of services in accordance
with AASB 118 Revenue.
Assets held under finance leases are initially
recognised as assets of the company at their fair
value at the inception of the lease or, if lower, at
the present value of the minimum lease payments.
The corresponding liability to the lessor is included
in the Statement of Financial Position as a finance
lease obligation. Lease payments are apportioned
between finance expenses and reduction of the
lease obligation so as to achieve a constant rate of
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