KU Annual Report KU Annual Report 2019 | Page 43

FINANCIALS 2019 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: 2.2 New and revised Australian Accounting Standards in issue but not yet effective At the date of authorisation of the financial statements, the Company has not applied the following new and revised Australian Accounting Standards, Interpretations and amendments that have been issued but are not yet effective: Effective for annual reporting periods on or after 1 January 2020 Standard/amendment AASB 2019-4 Amerndments to Australian Accounting Standards - Disclosure in Special Purpose Financial Statements of Not-for-Profit Private Sector Entities on Compliance with Recognition and Measurement Requirements The following Standards and Interpretations should be added to the list above if they are deemed to be relevant for the entity: Effective for annual reporting periods on or after 1 January 2020 Standard/amendment AASB 1059 Service Concession Arrangements: Grantors AASB 2019-2 Amendments to Australian Accounting Standards - Implementation of AASB 1059 3. Summary of Accounting Policies Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Division 60 of the Australian Charities and Notfor-Profits Commission Act 2012, and Australian Accounting Standards – Reduced Disclosure Requirements and complies with other requirements of the law. 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. 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 useful life of an asset is determined by Management in line with guidelines as specified in AASB 16 Property, Plant and Equipment. The below estimates of useful life per class of asset are provided as a guide only. The actual estimation and application of the useful life and salvage value of the asset is a reasonable judgement made by Management based on the experience of the entity with similar assets. The following estimated useful lives are used as a guide in the calculation of depreciation: • Buildings owned: 33-50 years • Buildings fixtures and fittings: 5-14 years • Leasehold improvements: lease term or 10 years • Furniture and fittings: 5-10 years • Computers and hardware: 3-5 years • Motor vehicles: 8-10 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. Land is carried at cost and is not depreciated. KU 20 19 17