2008 Annual Report - Cerebral Palsy Alliance

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18 | THE SPASTIC CENTRE ● 2008 ANNUAL REPORT Financial Notes Notes to and forming part of the financial statements for the year ended 30 June 2008 1 Basis for Preparation 2 Significant accounting policies 3 Determination of fair values 4 Financial Risk Management 5 Government Funding 6 Remuneration of Auditors 7 Expenses 8 Cash and Cash Equivalents 9 Trade and Other Receivables - Current 10 Inventories 11 Other Investments 12 Property, Plant and Equipment 13 Intangible Asset 14 Trade and Other Payables - Current 15 Employee Benefits - Current 16 Employee Benefits - Non-Current 17 Asset Revaluation Reserve 18 Financing Facilities 19 Operating Leases 20 Contingent Liabilities 21 Related Party Information 22 Members’ Guarantee 23 Company Name 24 Consolidated Entities 25 Financial Instruments 26 Reconciliation of Cash Flows from Operating Activities 27 Fundraising Appeals conducted during the Financial Year 28 Deed of Cross Guarantee 29 Events Subsequent to Balance Date 30 Fire and Insurance Claim 1. BASIS OF PREPARATION Reporting entity The Spastic Centre of New South Wales (“the Company”) is a company domiciled in Australia. The address of the Company’s registered office is 321 Mona Vale Road, Terrey Hills, NSW 2084. The consolidated financial statements of the Company for the financial year ended 30 June 2008 comprise the Company and its controlled entities (together referred to as the ‘consolidated entity’). The principal activities of the consolidated entity are to provide access to a range of services and facilities to children and adults with cerebral palsy and their families in NSW and the ACT and, where applicable, to other people with disabilities who can benefit from the services offered. The financial report was authorised for issue by the Board of Directors on 15 October 2008. a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. In the opinion of the Directors, having regard to the not-for-profit nature of the consolidated entity’s business, the terms used in the prescribed format of the income statements are not appropriate. The words “Operating Surplus/ (Deficit)” have been substituted for the terms “Net Profit/(Loss)” in the prescribed format of the income statements. b) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for available for sale financial assets which are measured at fair value. The methods used to measure fair values are discussed further in note 3. c) Functional and presentation currency These consolidated financial statements are presented in Australian dollars, which is the Company’s and the consolidated entity’s functional currency. d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate was revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes: ● note 15 and 16 - employee benefits provisions; and ● note 25 - financial instruments 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and by all entities comprised within the consolidated entity. a) New standards and interpretations issued but not effective The following standards, amendments to standards and interpretations have been identified as those which may impact the consolidated entity in the period of initial application. These are available for early adoption at 30 June 2008 but have not been applied in preparing this financial report. ● Revised AASB 101 Presentation of Financial Statements (September 2007) which introduces as a financial statement (formerly “primary” statement) the “statement of comprehensive
THE SPASTIC CENTRE ● 2008 ANNUAL REPORT | 19 income”. The revised standard does not change the recognition, measurement or disclosure of transactions and events that are required by other AASBs. The revised AASB 101 will become mandatory for the consolidated entity’s 30 June 2010 financial statements. The consolidated entity has not yet determined the potential effect of the revised standard on its disclosures. b) Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. In the Company’s financial statements, investments in subsidiaries are carried at cost. Transactions eliminated on consolidation Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial statements. c) Non-derivative financial instruments Non-derivative financial instruments comprise investments in listed equity securities, trade and other receivables, cash and cash equivalents and trade and other payables. Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition, non-derivative financial instruments are measured as described below. A financial instrument is recognised if the consolidated entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the consolidated entity’s contractual rights to the cash flows from the financial assets expire or if the consolidated entity transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the consolidated entity’s obligations specified in the contract expire or are discharged or cancelled. Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the consolidated entity’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Accounting for finance income and expense is discussed in note 2(h) and 2(l) respectively. Available for sale financial assets The consolidated entity’s investments in listed equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 2(k)) are recognised as a separate component of equity. When an investment is derecognised, the cumulative gain or loss in equity is transferred to profit or loss. Other Other non-derivative financial instruments are measured at amortised cost using the effective interest method, less any impairment losses. d) Inventories Inventories are valued at the lower of cost and net realisable value, with net realisable value being the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. Cost is based on the first-in first-out principle and includes expenditure incurred in bringing them to their present condition and location. e) Property, plant and equipment Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. The value of in-kind donations is determined by independent valuation at the time of the donation of land and on completion of building works. This independent valuation forms the deemed cost of such donated assets. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds of disposal with the carrying amount of property, plant and equipment. Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the consolidated entity and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation and amortisation Items of property, plant and equipment, including buildings, leasehold improvements and motor vehicles, but excluding freehold land, are depreciated over their estimated useful lives using the straight line method. Assets are depreciated from the date of acquisition. In respect of assets under construction depreciation commences from the date the asset is ready for use. Depreciation rates used for each class of asset, for the current and previous years, are as follows: 2008 2007 Buildings 4% 4% Crown Land Improvements 4% 4% Plant and Equipment 15-25% 15-25% Motor Vehicles 15-20% 15-20% The residual value, the useful life and the depreciation method applied to an asset are reassessed at the reporting date. Land and buildings are independently valued every three years (see note 12). f) Intangible assets Intangible assets acquired by the consolidated entity that have infinite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Amortisation Amortisation is recognised in profit or loss on a straight line basis over the estimated useful lives of the intangible assets from the date they are available for use. The estimated useful life of computer software for the current and comparative periods is 3 years. g) Employee benefits Defined contribution superannuation funds A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution
Page 1 and 2: The Spastic Centre The Spastic Cent
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Page 13 and 14: Directors’ Declaration for the ye
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Page 37 and 38: Thank You The Spastic Centre gratef
Page 39 and 40: Supporters and Sponsors 20/Twenty C
Page 41 and 42: Supporters and Sponsors Mighty Fine
Page 43 and 44: Supporters and Sponsors Donors $100
Page 45: Supporters and Sponsors McLeod Whee

2008 Annual Report - Cerebral Palsy Alliance

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