Untitled - Cerebral Palsy League

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(e) Land held for Resale Development properties are carried at fair value. The carrying value of these assets also includes the costs of development and holding costs such as borrowing costs, rates and taxes. Borrowing costs and other holding costs incurred after completion of development, are expensed. Revaluations Land held for resale is revalued with sufficient regularity to ensure the carrying amount of each asset in the class does not differ materially from fair value at reporting date. Independent valuations are obtained each year. Revaluation increments, on a class of assets basis, are recognised in the asset revaluation reserve except that amounts reversing a decrement previously recognised as an expense are recognised as revenues. Cerebral Palsy League of Queensland ( 12 ) (f) Impairment The carrying amounts of the League’s assets, other than inventories (see accounting policy 1(j)) are reviewed each reporting date to determine whether there is any indication of impairment. If such indication exists, the asset’s recoverable amount is estimated (see below). For land held for resale the recoverable amount is estimated annually until sold by obtaining independent valuations of the land parcels. The recoverable amount of the League’s receivables carried at amortised cost is calculated as the present value of estimated future cashflows, discounted at the original effective interest rate (i.e. the original effective interest rate computed at initial recognition of these financial assets). Receivables classified as current are not discounted. Impairment of receivables is not recognized until objective evidence is available that a loss event has occurred, All receivables are individually assessed for impairment. Impairment losses will be recognised in the income statement unless they relate to a revalued asset, where the impairment loss will be treated as a reversal of previous revaluation with any excess recognised through the income statement. When a decline in the fair value of an available for sale financial asset has been recognised directly in equity and there is objective evidence that the asset is impaired, the cumulative loss that had been recognised directly in equity is recognised in profit or loss even though the financial asset has not been derecognised. The amount of the cumulative loss that is recognised in profit and loss is the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss. (i) Calculation of Recoverable Amount The recoverable amount is the greater of fair value less costs to sell and the value in use. As the League is a not-for-profit organization, future economic benefits of its assets are not primarily dependant on the assets’ ability to generate net cash inflows. The League would replace their economic benefits if deprived of these assets. Consequently, value in use is determined as the depreciated replacement cost of the assets.. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. (ii) Reversals of Impairment An impairment loss is reversed when there is an indication that the impairment loss may no longer exist and there has been a change in the estimate used to determine the recoverable amount. An impairment loss in respect of asset is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (g) Trade and Other Payables Trade and other payables are stated at their amortised cost. Trade payables are non-interest bearing and are normally settled on 60 day terms. (h) Employee Benefits Wages, Salaries and Annual Leave The provisions for employee benefits to wages, salaries and annual leave represents the amount which the League has a present obligation to pay resulting from employees’ services provided up to reporting date. The provisions have been calculated at undiscounted amounts based on remuneration, wage and salary rates that the League expects to pay as at reporting date including related on-costs. Long Service Leave The provision for employee benefits to long service leave represents the present value of the estimated future cash outflows to be made resulting from employees’ services provided to reporting date. Provisions for employee benefits which are not expected to be settled within twelve months are discounted using the rates attaching to national government bonds at reporting date, which most closely match the terms of maturity of the related liabilities. In determining the provision for employee benefits, consideration has been given to future increases in wage and salary rates, and the League’s experience with staff departures. Related on-costs have also been included in the liability. (i) Superannuation Fund Contributions to defined contribution superannuation funds and other superannuation funds were made by the League based on 9% of the taxable salary component for all eligible employees and clients in accordance with the requirements of the superannuation guarantee legislation. Contributions are recognised as an expense as they are made.
(j) Inventories Inventories are carried at the lower of cost and net realisable value. Cost includes direct materials, direct labour and other direct variable cost and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition and location. Net realisable value is determined on the basis of normal selling pattern. (k) Borrowings costs Borrowing costs relate to interest on bank loans. Borrowing costs on land are capitalised into the cost of the asset as they are incurred. Borrowing costs on vehicles loans are expensed as incurred. (l) Interest bearing liabilities Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Bank loans are recognised at their principal amount, subject to set-off arrangements. Interest expense is accrued at the contracted rate. (m) Income Tax No income tax is payable by the League as Section 50-5 of the Income Tax Assessment Act exempts recognised Charitable Institutions from Income Tax. The League also retains Public Benevolent Institution status from the Australian Taxation Office. (n) Volunteer Workers No monetary value has been attributed to the valuable services provided by the League’s many volunteer workers. (o) Investments Investments in listed entities are classified as available for sale and measured at fair value, being quoted market prices at reporting date. Any resultant gain or loss is recognised directly in equity. When these items are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised in profit or loss. (p) Motor vehicles classified as assets held for resale League vehicles financed through individual bills of sale and sold in all cases prior to the expiration of twelve months from the date of purchase are classified as current assets – “Assets held for resale.” Each contract is closed out at the time of sale and a new contract entered into each time a car is purchased. The amount shown as owing under interest bearing borrowings is the sum of the individual contracts that are outstanding at any time regarding the financing of League vehicles under this policy. Other motor vehicles not subject to this policy are disclosed as fixed assets as the term of their ownership exceeds twelve months and such vehicles are generally not financed in the same manner as those involved in this policy. Cerebral Palsy League of Queensland ( 13 ) (q) Equipment Loans Items These represent items that are either purchased or funded by the League for the use by or hire to clients of the League. They are treated and accounted for as fixed assets even though in most cases a minimal hiring fee is charged to clients for their use. (r) Intangible Assets Intangible assets represent the cumulative cost of Information Technology projects capitalised by the League. Intangible assets are amortised from the date of acquisition and the straight line method of amortisation is used. The amortisation rate used for this class of asset for the current and previous year is 33%. (S) New standards and interpretations not yet adopted The following standards, amendments to standards and interpretations have been identified as those which may impact the League in the period of initial application. They are available for early adoption at 30 June 2007, but have not been applied in preparing this financial report: • AASB 101 Presentation of Financial Statements (October 2006); is applicable for annual reporting periods beginning 1 January 2007 and is expected to only impact disclosures contained within the financial report. • 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments. • AASB 7 Financial Instruments: Disclosures (August 2005) replaces the presentation requirements of financial instruments in AASB 132. AASB 7 is applicable for annual reporting periods beginning on or after 1 January 2007, and will require extensive additional disclosures with respect to the League’s financial instruments. • AASB 2005-10 Amendments to Australian Accounting Standards (September 2005) makes consequential amendments to AASB 132 Financial Instruments: Disclosure and Presentation, AASB 101 Presentation of Financial Statements, AASB 114 Segment Reporting, AASB 117 Leases, AASB 133 Earnings Per Share, AASB 139 Financial Instruments: Recognition and Measurement, AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards, AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts arising from the release of AASB 7. AASB 2005-10 is applicable for annual reporting periods beginning on or after 1 January 2007 and is expected to only impact disclosures contained within the financial report.
Page 3 and 4: Front Cover Image: League client, Z
Page 5 and 6: about the league The Cerebral Palsy
Page 7 and 8: chairperson and CEO foreword This y
Page 9 and 10: Pictured: League client, Bridie (th
Page 11 and 12: Pictured: Supported employees, Stev
Page 13 and 14: Pictured: More than 190 people atte
Page 15 and 16: Pictured: League client, Will Denny
Page 17 and 18: Pictured: Governor Bryce congratula
Page 19 and 20: Pictured: Supported employee, Ernes
Page 21 and 22: service development and policy Over
Page 23 and 24: Pictured: On behalf of the State CC
Page 25 and 26: Pictured: More than 30 people volun
Page 27 and 28: of agreements available to the Leag
Page 29 and 30: Pictured: Talented artist, John Mor
Page 31 and 32: Director’s Report The Directors p
Page 33 and 34: control, monitoring and reporting m
Page 35 and 36: Marketing and Fundraising Committee
Page 37 and 38: • Dispute resolution • Conflict
Page 39 and 40: Statement of recognised Income & Ex
Page 41: Estimates and underlying assumption
Page 45 and 46: Cash at bank and on hand as at the
Page 47 and 48: NOTE 15. PROPERTY, PLANT AND EQUIPM
Page 49 and 50: • The bank loan covering the purc
Page 51 and 52: NOTE 26. COMPANY NAME AND MEMBERS L
Page 53 and 54: NOTE 31. RESERVES NOTE 2007 $ Asset

Untitled - Cerebral Palsy League

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