BUSHkids Annual Report 2019-20

TOPIC SECTION 67 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 e. Financial assets Financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. The Scheme's financial assets include listed securities. Financial assets are initially recognised at cost, which includes transaction costs. They are subsequently measured at fair value which is equivalent to their market bid price at the end of the reporting period. Gains and losses are recognised in other comprehensive income and reported within the asset revaluation reserve within equity. When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognised in other comprehensive income is reclassified from the equity reserve to profit or loss and presented as a reclassification adjustment within other comprehensive income. f. Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line or diminishing value basis to write off the net cost of each item of property, plant and equipment (excluding land and work in progress) over their expected useful lives as follows: Buildings 40 years Freehold Improvements 15 years Plant and equipment 3 - 8 years Motor Vehicles 5 - 7 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the organisation. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Land is stated at council valuation which is in accordance with the State Valuation Service current valuation as at 30 June 2020. Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. g. Leases The Scheme as lessee At inception of a contract, the Scheme assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding lease liability is recognised by the Scheme where the Scheme is a lessee. However all contracts that are classified as short-term leases (lease with remaining lease term of 12 months or less) and leases of low value assets are recognised as an operating expense on a straight-line basis over the term of the lease. The Scheme as lessor Upon entering into each contract as a lessor, the Scheme assesses if the lease is a finance or operating lease. The contract is classified as a finance lease when the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases not within this definition are classified as operating leases. Rental income received from operating leases is recognised on a straight-line basis over the term of the specific lease. h. Trade and other payables These amounts represent liabilities for goods and services provided to the Scheme prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are ususally paid within 30 days of recognition.

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