FINANCIALS 2019
Notes to the Financial Statements
for the Financial Year Ended 31 December 2019
1. Corporate Information
The financial statements of KU Children’s Services
(the Company) for the year ended 31 December
2019 were authorised for issue in accordance with
a resolution of the Directors on 31 March 2020.
The Company is incorporated as a company limited
by guarantee. The financial statements are presented
in Australian dollars, which is KU Children’s Services’
functional and presentation currency.
2. Application of new and revised
Australian Accounting Standards
2.1 Amendments to Accounting Standards
that are mandatorily effective for the
current reporting period
The Company has adopted all of the new and revised
Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that are relevant
to its operations and effective for an accounting period
that begins on or after 1 January 2019.
New and revised Standards and amendments thereof
and Interpretations effective for the current year that
are relevant to the Company include:
• AASB 16 Leases
• AASB 15 Revenue from Contracts with Customers
(AASB 15)
• AASB 1058 Income of Not-for-Profit Entities
(AASB 1058)
• AASB 2016-8 Amendments to Australian
Accounting Standards – Australian Implementation
Guidance for Not-for-Profit Entities (AASB 2016-8)
• AASB 2018-8 Amendments to Australian
Accounting Standards – Right-of-Use Assets of Notfor-Profit
Entities (AASB 2018-8)
Impact of initial application of AASB 16 Leases
In the current year, the Company has applied AASB
16 that is effective for annual periods that begin on
or after 1 January 2019.
AASB 16 introduces new or amended requirements
with respect to lease accounting. It introduces
significant changesto lessee accounting by removing
the distinction between operating and finance
lease and requiring the recognition of a right-of-use
asset and a lease liability at commencement for all
leases, except for short-term leases and leases of low
value assets. In contrast to lessee accounting, the
requirements for lessor accounting have remained
largely unchanged. Details of these new requirements
are described in Note 3.
The date of initial application of AASB 16 for the
Company is 1 January 2019.
The Company has applied AASB 16 using the
cumulative catch up approach, with no restatement
of the comparative information the difference
between Right-of-Use Assets and Lease Liability at
date of initial adoption on 1 January 2019 was to
opening retained earnings.
a) Impact of the new definition of a lease
The Company has made use of the practical
expedient available on transition to AASB 16 not to
reassess whether a contract is or contains a lease.
Accordingly, the definition of a lease in accordance
with AASB 17 will continue to be applied to those
contracts entered or modified before 1 January 2019.
The change in definition of a lease mainly relates
to the concept of control. AASB 16 determines
whether a contract contains a lease on the basis
of whether the customer has the right to control
the use of an identified asset for a period of time
in exchange for consideration. This is in contrast
to the focus on ‘risks and rewards’ in AASB 17.
The Company applies the definition of a lease
and related guidance set out in AASB 16 to all
contracts entered into or changed on or after 1
January 2019. Management has assessed that
the new definition in AASB 16 will not significantly
change the scope of contracts that meet the
definition of a lease for the Company.
KU
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