TOPIC SECTION 68 ANNUAL REPORT 2019–2020 N TES TO THE FINANCIAL STATEMENTS – NOTES 1 – 2 FINANCIALS 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 i. Contract liabilities Contract liabilities represent the Scheme's obligation to transfer services to a customer and are recognised when a customer pays consideration before the Scheme has provided the service to the customer. j. Employee entitlements Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave are measured at the amounts expected to be paid when the liability is settled. The non-current provision for long service leave represents leave for employees with greater than 5 years service but less than 7 years service. k. Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST payable to the tax authority is included in other payables in the Statement of Financial Position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Scheme for the annual reporting period ended 30 June 2020. ROYAL QUEENSLAND BUSH CHILDREN'S HEALTH SCHEME ABN 43 824 927 762 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2020 2 - CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses in the financial statements. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilites within the next financial year are discussed below. Actual results may be substantially different. Economic dependence The Scheme is dependent on both Queensland government and Federal government grants for the majority of its revenue used to carry out its operations. At the date of this report the Council has no reason to believe that the government organisations will not continue to support the Scheme. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Scheme based on known information. This consideration extends to the nature of services offered, customers, supply chain, staffing and geographic region in which the Scheme operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Scheme unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Estimation of useful lives of assets Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. The useful lives could change significantly as a result of technical innovations or some other event.