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Annual Report 2011 - Cranbrook School

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Extract from Notes to the Financial Statements<br />

31 December <strong>2011</strong><br />

1. Corporate Information<br />

<strong>Cranbrook</strong> <strong>School</strong> is a company limited by<br />

guarantee and is domiciled in Australia.<br />

statements and accompanying notes. Rental revenue<br />

Although these estimates are based on Rental income from investment properties<br />

Management’s knowledge of current events is accounted for on a straight-­‐line basis over<br />

and actions that may be undertaken in the the lease term.<br />

The nature of operations and principal future, actual results may ultimately differ<br />

activities of <strong>Cranbrook</strong> <strong>School</strong> are to act as from estimates.<br />

Government grants<br />

an educational institution.<br />

Government grants are recognised<br />

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when the entity obtains control of the<br />

is located at 5 Victoria Road, Bellevue Hill,<br />

Revenue is recognised to the extent that it contribution or the right to receive the<br />

NSW 2023.<br />

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contribution and it is probable that<br />

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Accounting Policies<br />

recognition criteria must also be met before from government grants relating to expense<br />

revenue is recognised:<br />

items are recognised in the Statement of<br />

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Comprehensive Income.<br />

Rendering of services<br />

The following accounting policies were<br />

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<strong>School</strong> fees are charged at the<br />

Government grants are received for the<br />

commencement of each billing period funding of educational and other activities.<br />

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and recognised as income when the right ���������������������������<br />

on a historical cost basis, except for to be compensated for the services has contingencies attaching to the government<br />

investments in managed funds which have been attained.<br />

assistance that has been recognised.<br />

been measured at fair value.<br />

Interest<br />

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Australian dollars and all values are<br />

Interest revenue is recognised as accrued Property, plant and equipment are stated at<br />

rounded to the nearest dollar unless<br />

using the effective interest method. This cost less accumulated depreciation and any<br />

otherwise stated.<br />

is the method of calculating the amortised accumulated impairment losses.<br />

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Depreciation<br />

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interest income over the relevant period<br />

Depreciation is provided on a straight line<br />

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using the effective interest rate, which is the<br />

basis on all property, plant and equipment<br />

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rate that exactly discounts estimated future<br />

excluding land.<br />

<strong>Cranbrook</strong> <strong>School</strong>, <strong>Cranbrook</strong> Foundation, receipts through the expected life of the<br />

<strong>School</strong> Library Fund, Scholarship Fund ������������������������������������������<br />

Major depreciation periods are:<br />

and the Building Fund. The <strong>Cranbrook</strong> ����������������������<br />

<strong>2011</strong> & 2010<br />

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Enrolment fees<br />

Buildings 40 years<br />

various stand alone Special Scholarship<br />

Enrolment fees are paid to secure entry to<br />

Funds, in addition to the <strong>School</strong>’s<br />

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the <strong>School</strong> and are recognised as income<br />

educational results.<br />

���������������������������� 10 years<br />

when received as they are not refundable.<br />

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Old <strong>Cranbrook</strong>ians’ Association (OCA) is<br />

Donations and bequests<br />

marine, computers, vehicles �����������<br />

accounted for as a separate entity and is not<br />

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Donations are recognised at the fair value<br />

of either the Foundation or the <strong>School</strong>. of the consideration received or receivable. Impairment<br />

Donation income is recognised at fair The carrying values of property, plant and<br />

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value of the asset received and when the equipment are reviewed for impairment at<br />

statements, all inter-­‐company balances entity obtains control of the contribution each reporting date, with the recoverable<br />

and transactions, income and expenses or the right to receive the contribution and amount being estimated when events or<br />

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changes in circumstances indicate that the<br />

from intra-­‐group transactions have been ����������������������������������������<br />

carrying value may be impaired.<br />

eliminated in full.<br />

the entity.<br />

The recoverable amount of property,<br />

�������������������� Investment income<br />

plant and equipment is the higher of fair<br />

In conforming with generally accepted Investment income comprises the income value less costs to sell and depreciated<br />

accounting principles, the preparation of from investments in managed funds. replacement value.<br />

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Distributions from these investments<br />

requires Management to make estimates include interest, dividends and realised<br />

and assumptions that affect the reported capital gains. Movements in the fair value<br />

amounts of assets, liabilities, income and of these investments are also recognised as<br />

expenses, and the disclosure of contingent investment income.<br />

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An impairment exists when the<br />

carrying amount exceeds its estimated<br />

recoverable amount.<br />

Impairment losses are recognised in the<br />

statement of comprehensive income in the<br />

‘Impairment expense’ line.<br />

17

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