Annual Report 2004-2005 - Forensicare

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2004-2005 Financial Statements for the year ended 30 June 2005 Table 1: Reconciliation of net result as presented under Australian GAAP and that under A-IFRS* Note Year Ending 30 June 2005 Net result as reported under Australian GAAP (905) Estimated A-IFRS impact on Revenue Revenue Estimated A-IFRS impact on Expenses Employee benefits 21.2 (20) Depreciation and amortisation expense Borrowing costs Grants and transfer payments Supplies and Consumables Impairment expenses Total estimated A-IFRS impact on net results Net result under A-IFRS (885) Table 2: Reconciliation of total assets and total liabilities as presented under Australian GAAP and that under A- IFRS* Note Year Ending 30 June 2005 Total Assets under Australian GAAP 47,408 Estimated A-IFRS impact on Assets Inventories - Inventory held for distribution - Property, plant and equipment - Intangible assets - Investment properties - Non-Current assets held for sale - Total estimated A-IFRS impact on assets - Total assets under A-IFRS 47,408 Total Liabilities under Australian GAAP 5,949 Estimated A-IFRS impact on Liabilities Provisions (50) Total estimated A-IFRS impact on Liabilities (50) Total Liabilities under A-IFRS 5,889 Table 3: Reconciliation of equity as presented under Australian GAAP and that under A-IFRS* Note Year Ending 30 June 2005 Total equity under Australian GAAP 41,459 Estimated A-IFRS impact on equity Contributed Capital - Reserves 21.1 (7,540) Accumulated surplus/(Deficit) 21.1, 21.2 7,590 Total estimated A-IFRS impact on equity (50) Total equity under A-IFRS 41,509 With limited exceptions the Victorian Institute of Forensic Mental Health will be required to recognise adjustments on first time adoption of A-IFRS directly in accumulated surplus/(deficit) at the date of transition to A-IFRS. 74
1. Impairment of assets. AASB 136 Impairment of Assets requires assets to be assessed for indicators of impairment each year. This standard applies to all assets, other than inventories, financial assets and assets arising from construction contracts, regardless of whether they are measured on a cost or fair value basis. If indicators of impairment exist, the carrying value of an asset will need to be tested to ensure that the carrying value does not exceed its recoverable amount, which is the higher of its value-in-use and fair value less costs to sell. For not-for-profit entities, value-in-use of an asset is generally its depreciated replacement cost. An impairment test was conducted on transition date, 1 July 2004 and at 30 June 2005, which indicated that there is no impairment on the Institutes property, plant and equipment. This is inline with the upward revaluation of the land and buildings at 30 June 2004 and 30 June 2005.. Property, plant and equipment. When an asset is initially recognised, AASB 116 Property, Plant and Equipment requires the capitalisation of costs of dismantling and removing an asset and restoring the site on which the asset was created, together with the recognition of a provision at present value in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets. These costs (and the related provisions) are not recognised under Australian GAAP. The Institute has no current legal or constructive obligation for the dismantling of its property plant and equipment at 30 June 2005, hence there is no required adjustment due to this change in accounting policy. For its land and buildings the Institute has taken the deemed cost option available under AASB 1 First-time adoption of A-IFRS. The revaluation of the land and buildings at 30 June 2004 has been taken as the deemed cost and has the impact of transferring the asset revaluation reserve prior to 30 June 2004 of $2,955,577 and accumulated depreciation of buildings up to 30 June 2004 of $1,351,980 and the revaluation of land and buildings of $2,730,264.11 to accumulated surpluses/(deficits) on transition to A-IFRS at 1 July 2004. 2. Employee Benefits. Under existing Australian accounting standards, employee benefits such as wages and salaries, annual leave and sick leave are required to be measured at their nominal amount regardless of whether they are expected to be settled within 12 months of the reporting date. On adoption of A-IFRS, a distinction is made between short-term and long-term employee benefits and AASB 119 Employee Benefits requires liabilities for short-term employee benefits to be measured at nominal amounts and liabilities for long-term employee benefits to be measured at present value. AASB 119 defines short-term employee benefits as employee benefits that fall due wholly within twelve months after the end of the period in which the employees render the related service. Therefore, liabilities for employee benefits such as wages and salaries, annual leave and sick leave are required to be measured at present value where they are not expected to be settled within 12 months of the reporting date. The effect of the above requirement on the Institute’s Statement of Financial Position as at 30 June 2005 will be an estimated decrease in employee benefits liability of $19,992. For the year ended 30 June 2005, employee benefits expense is expected to increase by $19,992 as the present value discount on the liabilities for long-term employee benefits unwinds. 3. Capitalised borrowing costs.. On adoption of A-IFRS, the Institute has elected to immediately expense all borrowing costs as they are incurred, even where they relate to qualifying assets. There is no impact of this accounting policy change on the Institute at 30 June 2005 as no borrowing costs have previously been capitalised. 4. Finance leases. Existing Australian accounting standards require a lessee of a finance lease to recognise a lease asset and a lease liability equal to the present value of minimum lease payments at the beginning of the lease term. On adoption of A-IFRS, the lease asset and lease liability recognised will be equal to the lower of the present value of minimum lease payments and fair value of the leased asset. In addition, the guidance on whether a lease is a finance or operating lease is less prescriptive under A-IFRS, and there is a greater emphasis on the substance of the transaction when making such a judgement. As a consequence, there may be instances where leases that have previously been classified as operating leases under Australian GAAP may be reclassified as finance leases under A-IFRS. There is no impact of this accounting policy change on the Institute at 30 June 2005.. Non-current assets held for sale. AASB 5 Non-current Assets Held for Sale and Discontinued Operations requires an entity to classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through its sale rather than through continuing use. A non-current asset (or disposal group) classified as held for sale is to be measured at the lower of its carrying amount and fair value less costs to sell. In addition, an entity is also required to cease depreciation on an asset that has been classified as held for sale. There is no impact of this accounting policy change on the Institute at 30 June 2005. 5. Intangible Assets. Current accounting standards permit costs incurred on research and development projects to be deferred to future periods to the extent that they are expected beyond reasonable doubt to be recoverable. Under AASB 138 Intangible Assets, costs incurred in the research phase are not permitted to be recognised as an asset and are expensed when incurred. Only expenditures incurred in the development phase are permitted to be recognised as an asset to the extent that they satisfy the criteria of AASB 138. There is no impact of this accounting policy change on the Institute at 30 June 2005. 6. Financial instruments. The Institute has elected to apply the first-time adoption exemption available under AASB 1 First-time adoption of Australian Equivalent to International Financial Reporting Standard to defer the date of transition of AASB 139 Financial Instruments: Recognition and Measurement until 1 July 2005. Accordingly, there will be no quantitative impacts on the financial positions as at 1 July 2004 and 30 June 2005 and the financial performance for the year ended 30 June 2005. With the exception of receivables and payables, the majority of financial assets and liabilities held by the Institute are valued on the Statement of Financial Position at market value with changes in value taken to the Statement of Financial Performance. On adoption of A-IFRS, it is anticipated that there will be no significant changes in recognition of the Institutes assets and liabilities, hence no material impact is expected from this accounting policy change. 75
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Victorian Institute of Forensic Men
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Our Vision ….. to become an inter
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COMPOSITION OF REVENUE FIVE YEAR CO
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Initiatives Achievements Performanc
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LOOK HOW WE HAVE GROWN… As an org
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Chief Executive Officer’s Report
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My thanks …. Successful organisat
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Clinical Director’s Report The Th
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Nursing Practice Director’s Repor
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The implementation of the Carer Par
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SNAPSHOT OF TOTAL PATIENT POPULATIO
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JARDINE TRANSITION PROGRAM The comm
Page 25 and 26: Consolidating and Strengthening Cli
Page 27 and 28: Professional Education Strategic ob
Page 29 and 30: 20-23 June 2005, Annual Meeting of
Page 31 and 32: Research Strategic objectives • U
Page 33 and 34: RESEARCH IN PROGRESS AT 30 JUNE 200
Page 35 and 36: Strategic objectives • Provide hi
Page 37 and 38: SUPPORT FOR PEOPLE WITH A SERIOUS M
Page 39 and 40: The recommendations included in the
Page 41 and 42: INFORMATION MANAGEMENT Due to our r
Page 43 and 44: ENVIRONMENTAL MANAGEMENT Environmen
Page 45 and 46: Units of water consumed 2004/2005 2
Page 47 and 48: THE GOVERNING BODY - THE VICTORIAN
Page 49 and 50: COUNCIL COMMITTEES Five committees
Page 51 and 52: New Zealand Standard on Risk Manage
Page 53 and 54: LEGISLATIVE COMPLIANCE BUILDING AND
Page 55 and 56: Michael Daffern, Principal Psycholo
Page 57 and 58: Financial Overview FINANCIAL MANAGE
Page 59 and 60: 2004-2005 Financial Statements for
Page 78 and 79: STATEMENT OF CORPORATE INTENT - 200
Page 80 and 81: GLOSSARY 78 Acute Assessment Unit /
Page 82 and 83: INDEX 80 A Academic Centre - 34 Acc
Page 84: Victorian Institute of Forensic Men
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Annual Report 2004-2005 - Forensicare

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