KU Financial Report
3. Summary of Accounting Policies (continued)
n) Donations in kind
Over the course of the year the Company has received donations in kind from a number of local councils in the form of the right
to use premises at discounted rent. The Company is of the view that it is not feasible to fair value the services received accurately
and as such it has not brought to account discounted rent as a donation.
o) Trade and other payables
Trade payables and other payables represent liabilities for goods and services provided to the Company prior to the end of the
financial year that are unpaid. These amounts are usually settled within 30 days. The carrying amount of the creditors and
payables is deemed to reflect fair value.
p) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using
the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the
receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable
can be measured reliably.
q) Unearned income
The liability for unearned income is the unutilised amounts of grants received on the condition that specified services are
delivered or conditions are fulfilled. The services are usually provided or the conditions usually fulfilled within 12 months of receipt
of the grant. Where the amount received is in respect of services to be provided over a period that exceeds 12 months after the
reporting date or the conditions will only be sat