FINANCIAL

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2006
Note 29: Impacts of the adoption of Australian equivalents to
International Financial Reporting Standards (continued)
service leave provision was classified as non-current. Under A-IFRS, all long service
leave that an employee is entitled to be paid should they cease their employment
with Vision Australia this classified as current, with remaining long service leave
provision classified as non-current.
Note 30: Prior Period Adjustment
At merger date (July 2004) Vision Australia brought its land and buildings to account at
fair value. These values were determined by valuations undertaken by independent
valuers contracted by the individual merging agencies.
In early 2006 the Vision Australia Board engaged property advisors, Ernst & Young to
assist with a review of property. Ernst & Young’s task was to recommend the best use for
a selected number of Vision Australia’s properties. Interim reports produced by Ernst &
Young indicated current values may not match the amounts recorded at merger date.
Acting on this information the Vision Australia Board engaged a firm of independent
valuers, Charter Keck Cramer (CKC) to review the fair value of Land and Buildings as at
June 2004, 2005 and 2006.
Whilst the total value of land and buildings as determined by CKC varies by only 4%
from the values as at merger date, there are significant differences in values for certain
properties, and for both land and buildings at the same property as at merger date.
Vision Australia’s directors believe that the values determined by CKC more truly reflect
the fair values of both land and buildings at merger date. This is based upon more
substantial documentation provided by CKC, validated by Ernst & Young in a number of
instances. Consequently the Board resolved to adopt the value of land and buildings as
at merger date as calculated by CKC. The effect of this change is summarised in the
table below.
Consolidated
Company
Effect of Prior Period 2005 2005 2005 2005
Adjustment $’000 $’000 $’000 $’000
Before After Before After
Restatement Restatement Restatement Restatement
Depreciation and amortisation: 3,268 2,997 2,885 2,614
Contribution arising from 168,678 172,750 145,080 149,153
scheme of arrangement
Property, plant and equipment/ 104,943 109,287 103,506 107,850
Investment property
Retained Surplus 164,076 168,420 134,957 139,301
48 Vision Australia Financial Report 2005/2006