2007 Annual report (PDF 8.1 Mb) - University of Melbourne

FINANCIAL
STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
> Advertising and Computer Software and Services have been disclosed separately. Previously these were included in other
expenses within Note 15.
> Other expenditure commitments to Uniseed were reclassified from Capital Commitments to Other Expenditure Commitments in
Note 35.
1.24 Rounding
All amounts shown in the financial statements are expressed by reference to the nearest thousand dollars unless otherwise specified.
1.25 Changes to Accounting Policy and Estimates
In 2007, the University added an additional depreciation rate of 20% for large research equipment which is included within the Scientific
and Computing equipment asset class. Previously these items were depreciated at 33 %. The change in accounting estimate was applied
prospectively from 1 January 2007 in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.
There were no changes to accounting policy during the year ended 31 December 2007.
1.26 New Accounting Standards and Interpretations
In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board that are relevant to the operations and effective for the current annual reporting period. The adoption of these new and
revised Standards and Interpretations have not resulted in changes to the Group’s accounting policies for the current and prior years.
Although there were no changes to accounting policy, the introduction of AASB 7 Financial Instruments: Disclosure has resulted in a
number of new and enhanced disclosures surrounding financial instruments.
At the date of this report certain new accounting Standards and Interpretations have been published that are not mandatory for the financial
year ending 31 December 2007. They are available for early adoption, but have not been applied in preparing this financial report. The
Group’s assessment of the impact of the new standards and Interpretations relevant to the Group is set out below:
>AASB 101 Presentation of Financial Statements was revised amending the name and disclosure requirements of the three primary
statements to Statement of Comprehensive Income (previously Income Statement), Statement of Financial Position (previously
Balance Sheet) and Statement of Cash Flows (previously Cash Flow Statement). The changes will not affect any of the amounts
recognised in the financial statements. The revised standard is effective for annual reporting periods beginning on or after
1 January 2009.
>AASB 123 Borrowing Costs was revised removing the option to immediately recognise borrowing costs as an expense. Borrowing
costs on qualifying assets will be required to be capitalised up until the date the asset is ready for use. The revised standard
is effective for annual reporting periods beginning on or after 1 January 2009. At this date, the University will be required to
change the accounting policy in relation to borrowing costs as the current policy allows for all borrowing costs to be expensed.
In accordance with the transitional provisions of AASB 123, the revised standard will be applied prospectively. The change is not
expected to impact the Group’s results.
The University of Melbourne Annual Report 2007 107