BUSHkids Annual Report 2019-20

TOPIC SECTION 65 ANNUAL REPORT 2019–2020 FINAN IALS N TES TO THE FINANCIAL STATEMENTS – NOTE 1 ROYAL QUEENSLAND BUSH CHILDREN'S HEALTH SCHEME ABN 43 824 927 762 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2020 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Reporting Framework The financial statements have been prepared on the basis that the Royal Queensland Bush Children's Health Scheme ('Scheme') is a non-reporting entity because there are no users dependent on general purpose financial statements. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012. The Scheme is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not-for-profits Commission Act 2012 and the significant accounting policies disclosed below, which have been determined are appropriate to meet the needs of the Scheme's constitution and relevant legislation. Such accounting policies are consistent with those of previous periods except as detailed below. New or amended Accounting Standards and Interpretations adopted The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Scheme. AASB 15 Revenue from Contracts with Customers The Scheme has adopted AASB 15 from 1 July 2019. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. Contracts with customers are presented in an Entity's Statement of Financial Position as a contract liability, a contract asset, or a receivable, depending on the relationship between the Entity's performance and the customer's payment. AASB 16 Leases The Scheme has adopted AASB 16 from 1 July 2019. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the Statement of Financial Position. Operating lease expense recognition is replaced with an amortisation charge for the right-of-use assets (included in operating costs). For lessor accounting, the standard does not substantially change how a lessor accounts for leases. AASB 1058 Income of Not-for-Profit Entities The Scheme has adopted AASB 1058 from 1 July 2019. The timing of income recognition under AASB 1058 is dependent upon whether the transaction give rise to a liability or other performance obligation at the time of receipt. Income under the standard is recognised where: an asset is received in a transaction, such as by way of grant, bequest or donation; there has either been no consideration transferred, or the consideration paid is significantly less than the asset's fair value; and where the intention is to principally enable the Entity to further its objectives. The liability is brought to account as income over the period in which the Entity satisfies its performance obligations. Impact of adoption AASB 15, AASB 16 and AASB 1058 were adopted using the modified retrospective approach and as such comparatives have not been restated. The impact on opening retained surplus as at 1 July 2019 was as follows: AASB 15 / AASB 1058 - Increase in retained surplus due to $ additional revenue recognition 73,254 AASB 16 - Decrease in retained surplus due to additional expense recognition (18,528) Net adjustment to opening retained surplus 54,726 The impact of the new Accounting Standards compared with the previous Accounting Standards on the current reporting period is as follows: New Previous Difference $ $ $ Property, plant and equipment 1,223,899 0 1,223,899 Other current assets 0 (73,254) 73,254 Other current liabilities 1,242,427 0 1,242,427 Net assets (18,528) (73,254) 54,726