KU Financial Report
Notes to the Financial Statements
For the financial year ended 31 December 2008
1.
Adoption of new and revised Accounting Standards
In the current year, the Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board( the AASB) that are relevant to its operations and effective for the current annual reporting period. Details of the impact of the adoption of these new accounting standards are set out in the individual accounting policy notes set out below. The Company has also adopted the following Standards as listed below which only impacted on the Company’ s financial statements with respect to disclosure:
• AASB 101‘ Presentation of Financial Statements( revised October 2006)
• AASB 7‘ Financial Instruments: Disclosures
2.
Summary of Accounting Policies
Statement of compliance The financial report is a general purpose financial report, which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law. Accounting Standards include Australian equivalents to International Financial Reporting Standards(‘ A-IFRS’). A statement of compliance with IFRS cannot be made due to the application of not for profit sector specific requirements contained in the A-IFRS.
The financial statements were authorised for issue by the directors on 2 April 2009.
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, unless otherwise noted.
The following significant accounting policies have been adopted in the preparation and presentation of the financial report:
a) Company Limited by Guarantee The company is incorporated as a company limited by guarantee. In accordance with the Constitution every member of the company undertakes to contribute to the assets of the Company in the event of it being wound up, while he / she is a member or within one year after he / she ceases to be a member, the sum of $ 2. The company has 6,570 members.
b) Payables Trade payables and other accounts payable are recognised when the company becomes obliged to make future payments resulting from the purchase of goods and services.
c) Property, plant and equipment Land and buildings, plant, 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 plant, furniture and equipment, motor vehicles and computers, including freehold buildings but excluding land and buildings on leased property. 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.
24 KU Children’ s Services