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