Annual Report 2007 - front cover - Cerebral Palsy Alliance

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20 THE SPASTIC CENTRE • 2007 ANNUAL REPORT financial notes notes to and forming part of the financial statements for the year ended 30 June 2007 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES ... continued 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). Where the carrying amount of an asset or its cash generating unit exceeds the valuation, the difference is taken as a charge to the income statement. j) Trade and other payables Trade and other payables are stated at their amortised cost. Trade payables are non-interest bearing and are normally settled within usual trading terms. k) Employee benefits Defined contribution superannuation funds Obligations for contributions to defined contribution funds are recognised as an expense in the income statement as incurred. Wages, salaries and annual leave Liabilities for employee benefits for wages, salaries and annual leave expected to be settled within 12 months of the year-end represent present obligations resulting from employees' services provided to reporting date, calculated at undiscounted amounts based on remuneration wage and salary rates that the consolidated entity expects to pay as at reporting date including related on-costs. Long term service benefits The consolidated entity's net obligation in respect of long-term service benefits is the amount of future benefits that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wages and salary rates including related on-costs and expected settlement dates. l) Revenue and Income Total revenue is recognised at the fair value of the consideration received net of the amount of goods and services tax. Government funding Government grant revenue is recognised when there is reasonable assurance that the entity will comply with the conditions attached to them and the grant will be received. Grants received on the condition that specified services are delivered, or conditions are fulfilled, are considered reciprocal. Such grants are initially recognised as a liability and revenue is recognised as services are performed or conditions fulfilled. Revenue from non-reciprocal grants is recognised when received. Fundraising and bequests Donations and legacies are accounted for on a cash basis. Revenue from legacies comprising bequests of shares or other property are recognised at fair value, being the market value of the shares at the date the company becomes legally entitled to the shares or property. Donations received on the condition that specified services are delivered, or conditions are fulfilled, are considered reciprocal. Such donations are initially recognised as a liability and revenue is recognised as services are performed or conditions fulfilled. Revenue from non-reciprocal donations is recognised when received. Rendering of services Revenue from rendering of services is recognised in the period in which the service is provided having regard to the stage of completion of the transaction. Sale of goods Revenue from the sale of goods is recognised when significant risks and rewards of ownership have been transferred to the buyer. Assets sales The gain or loss on disposal of all non-current assets and listed equity securities available for sale is determined as the difference between the carrying amount of the asset at the time of the disposal and the net proceeds on disposals. Financial income Interest income is recognised as it accrues. Dividend income is recognised on the date the consolidated entity's right to receive payments is established, which in the case of equity securities is the ex-dividend date. Financial income is separately recognised in the income statement. Rental income Rental income is recognised in the income statement on a straight line basis over the life of the lease. m) Volunteer workers No monetary value has been attributed to the valuable services provided by the many volunteer workers. n) Goods and services tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. o) Impairment The carrying amounts of the consolidated entity's assets other than inventories are reviewed at each balance date to determine whether there is any indication of impairment. If such indication exists, the asset's recoverable amount is estimated with any impairment loss being recognised in the income statement, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess being recognised through the income statement. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. An impairment loss in respect of listed equity security available for sale is calculated by reference to its current fair value. p) Expenses Operating lease payments The company has entered into leases of premises, motor vehicles and office equipment as disclosed in Note 18. Management has determined that all the risks and rewards of ownership of these premises, vehicles and equipment remain with the lessor and has therefore classified the leases as operating leases. Payments made under operating leases are recognised in the income statement on a straight line basis over the term of the lease. Financial expenses Financial expenses represent interest relating to interest-bearing liabilities and bank overdraft. Financial expenses are recognised using the effective interest rate method. q) Derecognition of financial assets and liabilities A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: THE SPASTIC CENTRE • 2007 ANNUAL REPORT • the rights to receive cash flows from the asset have expired; • the consolidated entity retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party; or • the consolidated entity has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the income statement. r) Non-current assets held for sale Immediately before classification as held for sale, the measurement of the assets (and all assets and liabilities in a disposal group) is brought up-to-date in accordance with applicable accounting standards. Then, on initial classification as held for sale, noncurrent assets and disposal groups are recognised at the lower of carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale are included in the income statement, even when there is a revaluation. The same applies to gains and losses on subsequent remeasurement. 2. SEGMENT REPORTING The consolidated entity operates predominantly in one industry. The principal activities 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. 3. INCOME TAX No income tax is payable by the consolidated entity as Section 50-5 of the Income Tax Assessment Act 1997 exempts recognised Charitable Institutions from Income Tax. The Spastic Centre and its controlled entities are deductible gift recipients as defined in the Income Tax Assessment Act. 21
Page 1 and 2: Annual Report
Page 3 and 4: THE SPASTIC CENTRE OF NEW SOUTH WAL
Page 5 and 6: The need for a major facility upgra
Page 7 and 8: ■ It was a record year for fundra
Page 9 and 10: Associate Professor Nossar was prev
Page 11 and 12: Board Committees FINANCE AND AUDIT
Page 13 and 14: THE SPASTIC CENTRE • 2007 ANNUAL
Page 15 and 16: Independent Audit Report to the mem
Page 17 and 18: income statements for the year ende
Page 21: c) Basis of consolidation Subsidiar
Page 25 and 26: CURRENT ASSETS THE SPASTIC CENTRE
Page 31 and 32: NOTES THE SPASTIC CENTRE • 2007 A
Page 37 and 38: CREDIT CARD DETAILS Please debit my
Page 39 and 40: sponsors & supporters Committee Mem
Page 41 and 42: sponsors & supporters MIGHT AND POW
Page 43 and 44: sponsors & supporters DONORS $500 T
Page 45: sponsors & supporters VOLUNTEERS -

Annual Report 2007 - front cover - Cerebral Palsy Alliance

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