KU Financial Report
Notes to the Financial Statements
for the Financial Year Ended 31 December 2011
1. Corporate information
The financial statements of KU Children’s Services (the company) for the year ended 31 December 2011 were
authorised for issue in accordance with a resolution of the Directors on 27 March 2012.
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.
Going Concern
Despite the fact that the Company has net current liabilities, on the basis of the points set out below, the Directors
have concluded that it is appropriate to prepare the financial statements on a going concern basis as:
1. It is the opinion of the Directors that the amounts shows as current liabilities will not all be payable in cash within
12 months;
2. The Company has prepared a 2012 financial year cash flow forecast which demonstrates that the Company has
sufficient cash to pay its liabilities when they fall due;
3. The Company has the ability to manage capital expenditure to ensure funds are available to pay debts as and
when they fall due;
4. The Company has committed undrawn bank facilities to ensure sufficient funds are available to pay debts as
and when they fall due; and
5. The Company has assets that could be realised to pay debts as and when they fall due.
For these reasons, it is the opinion of the Directors that the Company will generate cash flow from its operations
and have sufficient banking facilities available to continue its operations and fulfil all of its financial obligations as
and when they fall due.
Continues...
116th Annual Report 2011
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