FINANCIALS
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.
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.
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.
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.
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.
Fundraising
Fundraising is recorded when the income is
received or receivable.
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.
Rendering of services
Revenue from a contract to provide services is
recognised by reference to the stage of completion
of the contract.
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 received 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
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.
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