FINANCIALS 2019
KU
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3. Summary of Accounting Policies
(continued)
Program Reserve
The program reserve arises from surpluses on
the programs that have been allocated to the
Company for future liabilities that may arise which
the Company will be accountable for.
m) 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.
n) 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.
o) 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.
p) 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 satisfied more than
12 months after the reporting date, the liability is
discounted and presented as non-current.
q) Comparatives
Comparatives have been realigned where necessary,
to agree with current year presentation. There was
no change in the profit or net assets.
4. Critical accounting judgements and
key sources of estimation uncertainty
The preparation of financial statements requires
management to make judgements, estimates and
assumptions that affect the application of policies
and reported amounts of assets, liabilities, income
and expenses. The estimates and associated
assumptions are based on historical experience
and other various factors that are believed to be
reasonable under the circumstances, the results of
which form the basis of making the judgements.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period or in the
period of the revision and future periods if the revision
affects both current and future periods.
The following are the critical judgements that
management has made in the process of applying
the Company’s accounting policies and that have the
most significant effect on the amounts recognised in
the consolidated financial statements:
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