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Department of Human Services
Health Services Annual Reporting Guidelinesfor 2008-2009
Under Financial Management Act 1994
Table of Contents
IntroductionIntroduction............................................................................................................................................................................................................................................ 11
Recent Relevant Professional DevelopmentsRecent Relevant Professional Developments......................................................................................................................................33
Financial Reporting Directions (FRDs)Financial Reporting Directions (FRDs)............................................................................................................................................................ 33
Summary of New and Revised Accounting PronouncementsSummary of New and Revised Accounting Pronouncements......................................................................................44
Yearly TimetableYearly Timetable............................................................................................................................................................................................................................ 66
Financial StatementsFinancial Statements.............................................................................................................................................................................................................. 66
Annual ReportsAnnual Reports.................................................................................................................................................................................................................................. 77
Printing and Publication of Annual Report to be tabled in ParliamentPrinting and Publication of Annual Report to be tabled in Parliament............................................................88
Report of OperationsReport of Operations............................................................................................................................................................................................................ 1010
Responsible Bodies DeclarationResponsible Bodies Declaration.......................................................................................................................................................................... 1010
Reporting CommentsReporting Comments.......................................................................................................................................................................................................... 1111
Additional information (FRD 22B Appendix)Additional information (FRD 22B Appendix)......................................................................................................................................1313
Other InformationOther Information.................................................................................................................................................................................................................... 1414
Key Financial and Service Performance ReportingKey Financial and Service Performance Reporting..................................................................................................................1515
Attestation on Data AccuracyAttestation on Data Accuracy................................................................................................................................................................................ 2222
Classifying Transactions to the Health Service Agreement (HSA) or Hospital and Classifying Transactions to the Health Service Agreement (HSA) or Hospital and Community Initiatives (H&CI)Community Initiatives (H&CI).................................................................................................................................................................. 2424
General IssuesGeneral Issues................................................................................................................................................................................................................................ 2525
Attestation on Compliance with Australian/New Zealand Risk Management StandardAttestation on Compliance with Australian/New Zealand Risk Management Standard. .. .2626
Disclosure IndexDisclosure Index.......................................................................................................................................................................................................................... 2727
Financial Statements and Explanatory NotesFinancial Statements and Explanatory Notes..................................................................................................................................2929
IntroductionIntroduction........................................................................................................................................................................................................................................ 2929
Board member’s, accountable officer’s and chief finance & accounting officer’s Board member’s, accountable officer’s and chief finance & accounting officer’s declarationdeclaration.......................................................................................................................................................................................................................... 3131
Auditor-General’s ReportAuditor-General’s Report.............................................................................................................................................................................................. 3232
Operating StatementOperating Statement.......................................................................................................................................................................................................... 3434
Balance SheetBalance Sheet................................................................................................................................................................................................................................ 3737
Statement of Changes in EquityStatement of Changes in Equity.......................................................................................................................................................................... 3939
Cash Flow StatementCash Flow Statement.......................................................................................................................................................................................................... 4141
Notes to the Financial StatementsNotes to the Financial Statements.................................................................................................................................................................. 4433
ii
Introduction
These guidelines are provided to assist health services in the presentation of their annual report
as required under the Financial Management Act 1994 (the Act), section 4.2 of the Standing
Directions of the Minister for Finance under the Act and Financial Reporting Directions. The Act
and Directions apply to all entities. Each annual report is to be divided into two sections:
Report of operations.
Financial statements including explanatory notes.
These guidelines have been developed to illustrate as widely as possible the minimum disclosure requirements for entities. You are expected to use the guideline as a basis for preparing your financial report, subject to each entity’s individual circumstances.
These guidelines provide guidance for entities to complete their financial statements, while
further information can be found in the following documents:
Financial Management Act 1994.
Standing Directions of the Minister for Finance.
Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance.
Australian Accounting Standards.
Australian Interpretations.
AIMS guidelines.
It is recommended that the reporting process commence in early June 2009 with a mock run
using 31 May, 2009 data, incorporating June data in early July in order to meet the 24 July
2009 and 25 August 2009 deadlines for financial statements (Refer to Timetable on page 6).
Balance date for entities is 30 June 2009.
Submission of a June F1 for 2008-09 is required. The due date for submitting the F1 is 28 July
2009. Health Services will be required to provide an interim financial result prior to this date.
Abbreviations in these guidelines refer to Australian Accounting Standards (AAS), AASB
Accounting Standards (AASB), the Financial Management Act 1994 (the Act), Financial Reporting
Direction (FRD) and Victorian Auditor-General’s Office (VAGO).
The guidelines include all requirements that are effective for financial periods beginning on or
after 1 July 2008.
It is the primary responsibility of the entity’s management and governing board to ensure that
these requirements are complied with.
As was the case in the previous years there are separate requirements for the State’s Annual
Financial Report (AFR) under the Financial Management Act 1994 (Refer s24 of the Act as results
from the requirements of AASB 1049 ‘Whole of Government and General Government Sector
Financial Reporting’). Each entity needs to complete the prescribed formats in Microsoft Excel to
11
meet the AFR reporting requirements. AFR information from entities will be consolidated by the
Department of Human Services (The Department or DHS) to produce a Portfolio return to the
Department of Treasury and Finance (DTF). DTF will then consolidate the Portfolio returns to
produce the State’s AFR report to be tabled in Parliament.
Separate AFR instructions will be issued by the Department in June 2009.
Queries regarding the contents of these guidelines should be directed to DHS Manager, Financial
Accounting at [email protected]
Segment Reporting
Health services that provide Commonwealth funded residential aged care services (RACS) are
required to comply with AASB 114 Segment Reporting (Refer to s21.26F Para 3e Residential
Care Subsidy Amendment Principles 2006 (No. 1)) as a condition of receiving the
Commonwealth's Conditional Adjustment Payments.
22
Recent Relevant Professional Developments
Financial Reporting Directions (FRDs)Financial Reporting Directions (FRDs)
During 2008-09, the following FRDs were added by DTF that are operative for current and future
reporting periods.
FRD
103D Non-Current Physical Assets118 Land Under Roads119 Contribution by Owners (replacing FRD 2A)
114B/116A Financial Instruments
A copy of the FRDs can be obtained from the ‘Budget and Financial Management’ section of
DTF’s website address of
https://www.bfm2.dtf.vic.gov.auYour user name is: DHS User/BFMYour password is: TNPPVHN1
33
Summary of New and Revised Accounting Summary of New and Revised Accounting PronouncementsPronouncements
The AASB has issued a number of Exposure Drafts (ED) and Accounting Standards since 30 June
2008.
A table listing the new and revised accounting pronouncements are outlined in the tables below.
Entities need to be cognisant of changes and where relevant incorporate these issues into the
annual reports.
Australian InterpretationsBeginning on or after
Interpretation 15 Agreements for the Construction of Real Estate 1 January 2009Interpretation 16 Hedges of a Net Investment in a Foreign Operation
Minimum Funding Requirements and their Interaction1 October 2008
Interpretation 17 Distributions of Non-cash Assets to Owners 1 July 2009Interpretation 18 Transfers of Assets from Customers 1 July 2009
AASB 7 Financial Instruments: Disclosures 1 July 2007AASB 139 Financial Instruments: Recognition and Measurement 1 July 2007AASB 1039 Concise Financial Reports 1 January 2009AASB 1048 Interpretation and Application of Standards 30 September
2008AASB 2008-5 Amendments to Australian Accounting Standards arising
from the Annual Improvements Project.[AASB 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 &1038
1 July 2008
AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project[AASB 1 & 5]
1 Jul 2009
AASB 2008-7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate.[AASB 1, 118, 121, 127 & 136]
1 January 2009
AASB 2008-8 Amendments to Australian Accounting Standards – Eligible Hedged Items[AASB 139]
1 July2009
AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101 1 January 2009AASB 2008-11 Amendments to Australian Accounting Standard – Business
Combinations Among Not-For-Profit Entities[AASB 3]
1 July 2009
AASB 2008-12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition[AASB 7, 139 & 2008-10]
1 July 2008
AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners[AASB 5 and AASB 110]
1 July 2009
AASB 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities[AASB 1, AASB 111 & AASB 123]
1 January 2009
AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments
1 January 2009
44
[AASB 4, AASB 7, AASB 1023 & AASB 1038]AASB 2009-3 Amendments to Australian Accounting Standards –
Embedded Derivatives [AASB 139 & Interpretation 9]
1 January 2009
ED 157 Joint ArrangementsED 158 Proposed Amendments to AASB 139 Financial Instrument Recognition and
Measurement – Exposures Qualifying for Hedge AccountingED 159 Proposed Improvements to Australian Accounting StandardsED 160 Proposed Amendments to AASB 1 First-time Adoption of Australian
Equivalents to International Financial Reporting Standards and AASB 127 Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
ED 161 Proposed Amendments to AASB 2 Share-based Payment and AASB Interpretation 11 AASB 2 – Group and Treasury Share Transactions – Group Cash-Settled Share-based Payment Transactions
ED164 An improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information
ED165 Improvements to Australian Accounting StandardsED166 Simplifying Earnings per Share: Proposed Amendments to AASB 133ED167 Discontinued Operations: Proposed Amendments to AASB 5ED168 Additional Exemptions for First-time Adopters: Proposed Amendments to
AASB 1ED169 Improving Disclosures about Financial Instruments: Proposed Amendments
to AASB 7ED173 Investments in Debt Instruments (Proposed Amendments to AASB 7)ED170 Relationships with the State (Proposed Amendments to AASB 124)ED171 Consolidated Financial StatementsED172 Embedded Derivatives (Proposed Amendments to AASB Interpretation 9
and AASB 139)ED174 Amendments to Australian Accounting Standards to facilitate GAAP/GFS
Harmonisation for Entities within the GGS [AASBs 101, 107 and 1052] ED175 Post Implementation Revisions to AASB InterpretationED176 Proposed amendments to Australian Accounting Standards – Borrowing
Costs of Not-For-Profit Public Sector Entities
Please refer to AASB website www.aasb.com.au for updates and details to all existing AASB,
AASB Interpretations and other accounting pronouncements.
55
Yearly Timetable
Financial Statements Financial Statements
DHS strongly encourages entities to undertake a May hard close that involves the preparation of
full financial statements, for audit as at 31 May 2009 with June movements being reviewed by
audit for consistency and reasonableness. Entities are also encouraged to bring forward the
calculation of certain items into May 2009 provided that there are no material changes expected
in June 2009 (this should be discussed with your VAGO representative) i.e. the calculation of LSL
Other areas for pre reporting date work to be performed include (and should be discussed with
your VAGO representative):
Contingent liabilities, contingent assets and commitments may be compiled as at 31 May
provided there are no material changes expected from May to June.
Wage inflation and discount rates for Long Service Leave will be issued by 2 June, thus
enabling the calculation of LSL as at 31 May.
Entities are requested to discuss their plan for the preparation of their financial statements with
their VAGO representative to identify and address any areas which may impede the completion
of the AFR templates and annual report by the due dates. It is recommended that entities agree
a timetable for the preparation and audit of their financial statements with their VAGO
representative. Entities should also advise their VAGO representative of any contentious,
unusual or other one-off material transactions (or accounting policies) that they are aware of as
soon as possible, in order to ensure early agreement/resolution.
The key dates for preparation of the 2008-09 financial statements are as follows:
(a) Material health services
Material health services are Austin Health, Barwon Health, Alfred Health, Eastern Health,
Melbourne Health, Western Health, Southern Health and Royal Children’s Hospital.
Deadline Task
May onwards Confirm audit process and timeframes with VAGO representative. Note that VAGO is required to audit all controlled entities under the Audit Act 1994.
24 July Provide VAGO representative with complete final draft financial statements that have passed internal quality assurance scrutiny and AFR schedules by no later than this date (and in accordance with the timetable agreed with your VAGO representative).
24 July Submit AFR schedules templates via email to [email protected]. (refer to separate AFR guidelines).
12 Aug Sign audited financial statements (subject to audit clearance). The Audit Committee and Governing Board should have already adopted the audited financial statements for signing by this date.
(b) Other health services (non material health services)
66
Deadline* Task
May onwards Confirm audit process and timeframes with VAGO representative. Note that VAGO is required to audit all controlled entities under the Audit Act 1994.
24 July Submit AFR schedules templates via email to [email protected]. (refer to separate AFR guidelines).
25 Aug Provide VAGO representative with complete final draft financial statements that have passed internal quality assurance scrutiny by no later than this date (or earlier in accordance with the timetable agreed with your VAGO representative).
22 Sep Sign audited financial statements (subject to audit clearance). The Audit Committee and Governing Board should have already adopted the audited financial statements for signing by this date.
* These deadlines are legislative requirements, which non material health services will need to improve upon to meet the annual report timelines detailed below.
Annual ReportsAnnual ReportsAnnual reports for 2008-09 will be tabled in Parliament on or before 15 October 2009. Health services are requested to implement a plan to ensure the process of completing for tabling by that date.
The key dates for preparation of the annual report are as follows:
Deadline* Task
From 9 May Start to prepare annual report (excluding financial statements – refer separate timing above for availability).
10 Aug 30 June financial statements submitted to VAGO (non material entities)
12 Aug onwards Advise the relevant DHS Divisional/Regional contact when VAGO signs off on financial statements.
14 Sep Prepare a final printers proof (bromide, PDF etc) of the annual report that contains an exact copy of the audited and approved (by the health service) financial statements, VAGO audit report and submit it to VAGO for final review. Once reviewed, arrange printing of annual report and forward copy of final bromide to the relevant Divisional contact.
14 to 21 Sep Check and forward 15 copies of the complete and final annual reports to Region/Division.
21 Sep Forward 60 hard copies of annual reports (including audited financial statements and VAGO audit report) that requires tabling to Region/Division. If an annual report is to be receipted then no extra copies are required (see page 8 for details).
Nov Ensure that annual report is replicated on the health services website and that the VAGO audit report is attached.
* These are DHS recommended timelines, if they are not met, the annual report may be
tabled/receipted late in Parliament that is, after 15 October 2009, and will require a Ministerial
Briefing specifying the reason(s) why the annual report was late.
NOTE:The annual report should be tabled in Parliament before the entities Annual
General Meeting and before the Annual Report is made available to the public.
Speaker Andrianopoulos made a ruling about the release of an annual report before
it was tabled in Parliament. His ruling can be found in Hansard, Vol 452, 22-22
November 2001, pp 1777 and 1873-4. The Speaker ruled that where such a disclosure
takes place, it is not a breach of privilege, but is a gross discourtesy to the House.
77
Printing and Publication of Annual Report to be tabled in Parliament
It is the responsibility of each entity to ensure that the annual report includes the financial
report and audit report issued by VAGO. It is recommended that the Report of Operations, the
Financial Statements and Explanatory Notes are contained within the same bound publication,
and not separate publications.
All details in the published annual report must appear exactly as per the
audited financial statements and accompanying notes cleared by VAGO.
- No information should be added to or removed from the financial
statements, doing so would imply that the amended information has
been audited by VAGO.
The format and presentation must be the same as agreed with VAGO.
VAGO’s audit report must be included in the annual report. It is important that
this is an exact copy of VAGO’s audit report.
Entities are therefore required to ensure that if the financial reports are provided to an external
printer that they are proof read to ensure that the completed document agrees with the format,
content and presentation as audited by VAGO.
Failure to comply with the above will delay the tabling of the entities annual report and may
necessitate an addendum, erratum or in extreme cases a reproduction and re-tabling of the
entities annual report to Parliament. Any amended financial statements must be submitted to
VAGO for audit review.
Please note: For ease of reading the financial statements, it is recommended that a font size
of no less than 10 be used in the printing of these statements and for ease of storing it is
recommended that the size of the annual report should be A4 size.
The financial statements must be processed in accordance with the yearly timetable to ensure
compliance with the requirements under the Financial Management Act 1994. 21 September
2009 is the deadline for Regions to collect from entities and to submit to the Minister the annual
report, that is (report of operations, financial statements and Audit Report).
Entities should provide the required number of copies of the annual report as audited by VAGO
to regional offices as per below:
Metropolitan Health Services and Denominational Health Services: Director of Finance,
13/50 Lonsdale Street, Melbourne;
Regions: Manager, Cabinet Parliament and Executive Services, 21/50 Lonsdale St,
Melbourne
The required number of copies each entity is to provide to their division/region is as per below:
Entities that have expenses and obligations (liabilities and commitments) totalling $5
million or more are required to submit 75 copies of their annual report (60 to be tabled
in Parliament, and 15 for division/region).
88
Entities that have expenses and obligations (liabilities and commitments) totalling less
than $5 million are required to submit 15 copies of their annual report (for the
division/region), as no copies are required for receipting in Parliament. (Annual reports
are receipted in Parliament by formally presenting a letter to both Houses of
Parliament informing that the Minister has received the report of operations and
financial statements of the public body)
The Minister is required to have the reports tabled/receipted in Parliament on or before 15
October 2009. The Minister must report to Parliament any failure to comply with the
time requirements under the Act and reasons for the delay.
99
Report of Operations
The following guidelines amplify the minimum requirements for the report of operations under
the Financial Management Act 1994. Entities are to disclose this information in their annual
reports and are to ensure consistency with the financial statements.
Consideration should be given to the most effective way of presenting information in the context
of additional disclosures made by the entity. A separate ‘statutory' report of operations required
by the Act in one part of the annual report is often less effective than inclusion of the required
information in the body of the non-financial section of the report. Cross-referencing can be used
to ensure compliance with the minimum disclosures in the Act. The report of operations should
be presented to VAGO’s representative for comparison with the financial statements.
The following are the items requiring disclosure in order to provide readers with background and
general information about the entity and their organisation structure. This information is
required by the Standing Directions of the Minister for Finance and Financial Reporting
Directions (specifically FRD 22B Standard Disclosures in the Report of Operations), and any
updates from time to time.
Responsible Bodies DeclarationResponsible Bodies Declaration
In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the <ABC Health Service> for the year ending 30 June 2009.
< Signature >
<Donald Duck>
Board Member
Big Town25 August 2009
Commentary – Responsible Bodies DeclarationSD 4.2(j) requires the Report of Operations to be signed and dated by a member of the board of the entity.
1010
Reporting CommentsReporting Comments
The following information is required under FRD 22B. Other information is also required under
FRD 11 Disclosure of Ex-Gratia Payments, FRD 21A Responsible Person and Executive Officer
Disclosures and FRD 25 Victorian Industry Participation Policy Disclosure in the Report of
Operations. This information needs to be indexed in the Disclosure Index found at page 27 of
these guidelines.
(i) Relevant general information should include:
(a) the manner in which the entity was established and its relevant Minister;
(b) the objectives, functions, powers and duties of the entity. These should be linked to a
summary of it activities, programs and achievements for the reporting period;
(c) the nature and range of services provided by the entity including the persons or section
of the community served by the entity;
(d) the administrative structure of the entity including:
(i) the names of the members of the governing board, Audit Committee and Chief
Executive Officer;
(ii) the names of occupants of senior offices and a brief description of the area of
responsibility of each office;
(iii) a chart setting out the organisational structure of the entity. The organisational
chart should be sufficiently detailed to provide users with an understanding of the
accountabilities for the entities main activities;
(e) Hospitals are currently required to provide a monthly dataset of their current FTE and
other payroll information to the Department under the Minimum Employee dataset
(MDS). In addition, hospitals are also required to provide a Workforce dataset bi-
annually. The latest specification of the MDS is available at
http://www.health.vic.gov.au/accounts/payroll.htm#register.
Data from the MDS is available to the Minister, to Divisions within the Department and
to bodies such as the Australian Institute of Health & Welfare in Canberra and to the
State Services Authority. Further, data from the MDS underpins DHS submissions to the
Department of Treasury & Finance for funding of Enterprise Bargaining Agreement’s
(EBAs) and other industrial matters affecting hospital budgets.
To ensure consistency in annual reporting, hospitals are required, as a minimum, to
report the following workforce statistics in their Annual Report in the following format:
JUNE
Current Month FTE
JUNE
YTD FTELabour Category
Nursing
Administration and Clerical
Medical Support
Hotel and Allied Services
Medical Officers
Hospital Medical Officers
Sessional Clinicians
Ancillary Staff (Allied Health)
1111
The FTE figures required in the table above are those excluding overtime. Do not
include contracted staff (eg. Agency nurses, Fee-for-Service Visiting Medical Officers) as
they are not regarded as employees.
The above data should be consistent with the information provided in the MDS/F1
datasets.
(ii) Relevant financial and other information in respect of a financial year should include:
(a) a summary of the financial results for the year, from annual financial reports, with
comparative results for the preceding four financial years. Previous years data needs to
be included on the same basis for comparative purpose. Entities should footnote where
changes to audited comparative information has been made to aid comparisons. This
summary of the financial results needs to be included in the report of
operations and not in the audited financial statements.
2009$000
2008$000
2007$000
2006$000
2005$000
Total Revenue
Total Expenses
Operating Surplus/ (deficit)
Retained Surplus/
(Accumulated Deficit)
Total Assets
Total Liabilities
Net Assets
Total Equity
Other (list)
(b) a summary of significant changes in financial position during the year. The report of
operations should complement the information presented in the financial statements by
providing a discussion and analysis of the entities operating results and financial
position. This should include details about any significant factors that affect the entities
performance.
(c) the operational and budgetary objectives of the entity for the financial year and
performance against those objectives including significant activities and achievements
during the year;
(d) a summary of major changes or factors which have affected the achievement of the
operational objectives for the year;
(e) events subsequent to balance date which may have a significant effect on the
operations of the entity in subsequent years;
(f) for consultancies (not contractors) during the year costing in excess of $100,000
(exclusive of GST) per consultancy, a schedule listing the consultants engaged,
particulars of the projects involved, the total project fees approved (exclusive of GST),
the total fees incurred (exclusive of GST) and future commitments in relation to each
consultant;
(g) for consultancies during the year costing less than $100,000 (exclusive of GST) per
consultancy, the number and total cost (exclusive of GST) of engagements;
(h) a statement on occupational health and safety matters, including appropriate
performance indicators adopted to monitor such matters and how the entity performs
under those indicators;
1212
(i) a statement on the extent of compliance with the building and maintenance provisions
of the Building Act 1993. Refer (Minister for Finance Guideline Building Act
1993/Standards for Publicly Owned Buildings/November, 1994);
(j) a summary of the application and operation of the Freedom of Information Act 1982 in
relation to the entity;
(k) a summary of the application and operation of the Whistleblowers Protection Act 2001
(the Act), including disclosures required by the Act;
(l) a disclosure index identifying the extent of compliance with statutory disclosure and
other requirements (Refer FRD 10 Disclosure Index. Appendix 1 of FRD 10 contains
example disclosures for the financial report);
(m) a statement, to the degree applicable, on the extent of progress in implementation and
compliance with National Competition Policy, including:
(i) the requirements of the Government policy statement, Competitive Neutrality
Policy Victoria; and
(ii) subsequent reforms;
Additional information (FRD 22B Appendix)Additional information (FRD 22B Appendix)
In compliance with the requirements of the Standing Directions of the Minister for Finance,
details in respect of the items listed below have been retained by <ABC Health Service> and
are available to the relevant Ministers, Members of Parliament and the public on request
(subject to the freedom of information requirements, if applicable):
(a) A statement of pecuniary interest has been completed.
(b) Details of shares held by senior officers as nominee or held beneficially.
(c)Details of publications produced by the department about the activities of the entity and
where they can be obtained.
(d) Details of changes in prices, fees, charges, rates and levies charged by the entity.
(e) Details of any major external reviews carried out on the entity.
(f) Details of major research and development activities undertaken by the entity that are
not otherwise covered either in the Report of Operations or in a document that contains
the financial report and Report of Operations.
(g) Details of overseas visits undertaken including a summary of the objectives and
outcomes of each visit.
(h) Details of major promotional, public relations and marketing activities undertaken by
the entity to develop community awareness of the entity and its services.
(i) Details of assessments and measures undertaken to improve the occupational health and
safety of employees.
(j) General statement on industrial relations within the entity and details of time lost
through industrial accidents and disputes, which is not otherwise detailed in the Report
of Operations.
(k)A list of major committees sponsored by the entity, the purposes of each committee and
the extent to which the purposes have been achieved.
1313
Other InformationOther Information(a) FRD 11 Disclosure of Ex-Gratia Payments requires an entity to disclose in aggregate, in
the notes to the financial statements, the nature and amount of any ex-gratia payments
incurred and written off during the reporting period.
(b) FRD 21A Responsible Person and Executive Officer Disclosures prescribes the disclosure
requirements and procedures in respect of Responsible Persons, Relevant Ministers and
Executive Officers.
(c) the following information for contracts commenced and/or completed in the financial
year must be disclosed under the Victorian Industry Participation Policy (VIPP) Act 2003
(Refer to FRD 25 Victorian Industry Participation Policy Disclosure in the Report of
Operations):
i. the number and total value of contracts commenced and/or completed in the
financial year to which the VIPP applied;
ii. the regional or metropolitan split by number and value of commenced and/or
completed contracts;
iii. for contracts commenced during the financial year, a statement of total VIPP
commitments (local content, employment and skill/technology transfer commitments)
made as a result of these contracts; and
iv. for contracts completed during the financial year, a statement of total VIPP
outcomes (local content, employment and skill/technology transfer outcomes)
achieved as a result of these contracts.
1414
Key Financial and Service Performance ReportingKey Financial and Service Performance Reporting
A. For Health Services which have agreed a Statement of Priorities
The Statement of Priorities (SoP) is the key document of accountability between the department and some entities. The SoP for each service is published annually by the department on its website.
Each entity that has this form of agreement with the department must, as part of its Annual Report tabled in the Parliament, publish the outcomes it has achieved for each aspect of its SoP. This reporting, with the exception of the financial aspects, should be placed in a single location or chapter of the Annual Report. It may, if considered desirable, be interspersed at relevant points of the Annual Report at the discretion of the entity.
Some data in this context is derived from unit level records by the department, entities may wish to verify final year result with the department as a precursor to publication.
Instructions for reporting are set out below against each part of the SoP. Where a particular section does not appear in a particular entity’s SoP, results in that area should not be reported.
Part A
For this part and for all strategic / planning priorities add a column headed “Achievement” which briefly states the outcome for the year. “Completed” or “Priority deferred to 2009-10 due to departmental restructure” might be two examples of appropriate notations. Please provide information against each priority in the SoP.
Sample layout:
Part A
Common requirements for all entities with a SoP.
Strategic priorities for 2008-09
Strategic Priority Deliverables Due Date
Achievement
1. Continue the implementation of HealthSMART
Work with DHS to implement the patient and client management system.
June 2009
Planning priorities for 2008-09
Planning priority Deliverables Achievement1. Neurosciences Develop a ABC
Health Neurosciences Service Plan
Part B
1515
First section for all Entities with an SoP except Dental Health Services Victoria.
Please include SoP outcomes/results in this section. Note that where these items are expressed elsewhere in the Annual Report as an achievement/outcome, they need not be reproduced separately here.
Part B: Performance priorities
Financial performance
Operating result
2008-09Actual ($M)
Annual operating result
Cash management/liquidity2008-09Actual
Creditors
Debtors
Net movement in cash balance ($m)
Service performance
WIES activity performance2008-09Actual
WlES performance to target (%)\
Elective Surgery2008-09Actual
Elective Surgery admissions
Critical Care2008-09Actual
lCU minimum operating capacity – <ABC Health Service>NlCU standard and flex operating capacity-<ABC Health Service>
1616
Quality and Safety2008-09Actual
Accreditation status (%)
Cleaning standards (%)
Submission of data to VICNISS (%)
VICNISS Infection Surveillance Indicators
Participation in the Hand Hygiene Program
Maternity2008-09Actual
Postnatal home care
Mental Health2008-09Actual
28 day readmission rate (%)
Access performance2008-09Actual
Percentage of operating time on hospital bypassPercentage of emergency patients admitted to an inpatient bed within 8 hoursPercentage of non-admitted emergency patients with length of stay of less than 4 hoursNumber of patients with length of stay in the emergency department greater than 24 hoursPercentage of Triage Category 1 emergency patients seen immediatelyPercentage of Triage Category 2 emergency patients seen within 10 minutesPercentage of Triage Category 3 emergency patients seen within 30 minutes
1717
Elective surgery2008-09Actual
Percentage of Category 1 elective patients admitted with in 30 daysPercentage of Category 2 elective surgery patients waiting less than 90 daysPercentage of Category 3 elective surgery patients waiting less than 365 days Number of patients on the elective surgery waiting listNumber of Hospital Initiated Postponements (HiPs) per 100 scheduled admissions
Part B
Dental Health Services Victoria ONLY.
Financial Performance
Operating result
2008-09Actual ($M)
Annual operating result
Cash management/liquidity2008-09Actual
Creditors
Debtors
Net movement in cash balance ($m)
Service PerformanceRatio of emergency to general of dental careProportion of dental remakes within 12 monthsPercentage of re-treatment within 12 months following completed endodontic treatmentPercentage of extraction within 12 months following completed endodontic treatment
Access Performance
Category 1 clients treated within 24 hours
Priority denture clients receiving treatment within 3 monthsState-wide average waiting time for non-urgent general dental careState-wide average waiting time for non-urgent denture carePercentage of agencies with average waiting time for general dental care of less
1818
than 3 yearsPercentage of agencies with average waiting time for denture care of less than 3YearsProportion of pre-school aged children receiving care, who are dependants of eligible adultsPercentage primary school children recalled in 24 monthsPercentage of high-risk school children recalled in 12 monthsProportion of school children receiving care, who are dependants of eligible adultsPercentage of high-risk young people attending 12 month recall
Statewide function performancePerformance measure 2008-09
Actual
Implementation of Oral health promotion
Implementation of the oral health workforce retention and recruitment strategyImplementation of the plan for the reduction of waiting times for general and denture care at agencies with the longest waiting times
Part CFirst section for all Health Services with a SoP except Dental Health Services Victoria.
While a budget is set against each item, this provides information on the basis upon which funds were allocated. The Annual Report should provide detail only on the activity undertaken by a service.
Part C: Activity and Funding
Activity and Funding Type Weighted Inlier Equivalent Separations (WIES)
2008-09Activity
Achievement
WIES PublicWIES PrivateWIES RenalTotal WIES (Public, Private and Renal)WIES DVAWIES TACWIES TOTALAcute Non-InpatientEmergency Services - Non-AdmittedVACS - Allied HealthVACS - VariableVACS - OtherNon VACS OutpatientsVACS Allied Health - DVAVACS Variable - DVA
Non-acute InpatientCRAFTRehab L1 (non DVA)
1919
Rehab L2 (non DVA)GEM (non DVA)Palliative Care - InpatientPalliative Care - OtherRehab 2 - DVAGEM -DVAPalliative Care - DVANHT - DVANon-acute AmbulatoryHospital Admission Risk Program (HARP)SACS - Non DVASACS – PaediatricPost Acute CareTransition Care (Non DVA) - Bed dayTransition Care (Non DVA) - Home daySACS - DVAPost Acute Care - DVAAged CareAged Care Assessment ServiceOther Aged CareResidential Aged CareCommunity Health/Primary CareCommunity Health · Direct CareCHC - Health Promotion & Workforce DevelopmentSpecified GrantsMental HealthDisabilityOther DHS ProgramsTransplants - Pancreas
Part C
Dental Health Services Victoria ONLY.
Funded activity2008-09Actual
Community Dental CareRDHM Dental CareSchool Dental Care
Block funded activitiesReport against each measure listed.
2020
B. For all other Health Services
ActivityActivity
Admitted Patient - Note (a) Acute Sub- Acute
Mental Health
Other Total
SeparationsSame DayMulti DayTotal SeparationsEmergencyElectiveOther inc MaternityTotal Separations
Total WIES
Total Bed Days
Admitted patient data is to be sourced from the Victorian Admitted Episode Dataset (VAED)
where feasible, and definitions should be in accordance with the Standards in the VAED manual
Version 17. As the final VAED consolidation is scheduled to occur on 17 September and
preparation of the data for the above table will be occurring before then, some estimation
especially in Weighted Inlier Equivalent Separation (WIES) will be required to complete the table.
Non Admitted Patients Acute Sub- Acute
Mental Health
Other Total
Emergency Department PresentationsOutpatient Services - occasions of services (VACS and Non VACS clinics)Other Services - occasions of servicesTotal occasions of serviceVictorian Ambulatory Classification System - Number of encounters (applicable to health service / hospital allocated with VACS throughput targets)
Non-admitted data should be in accordance with the definitions in the Victorian Emergency
Minimum Dataset (VEMD) Manuals for those health service/hospitals reporting on that system or
otherwise the AIMS manuals. Refer to the s2, s9 and s92 forms for the relevant programs. For
mental health program, data for emergency presentations and outpatient services should be
sourced from VEMD and CMI / ODS respectively.
Note (a) Care Type Allocation
Commentary Commentary Health services should allocate Care Types as follows: Acute (4,U); Mental (5); Sub-Acute
(1,2,6,7,8,9,E,F,K,P); Other (0). Health Services should explain what services are provided under
each care type in the Annual Report.
2121
Attestation on Data AccuracyAttestation on Data Accuracy
I, <Donald Trump> certify that the <ABC Health Service> has put in place appropriate internal controls and processes to ensure that the Department of Human Services is provided with data that reflects actual performance. The <ABC Health Service> has critically reviewed these controls and processes during the year.
< Signature >
<Donald Trump>
Accountable Officer
Big Town25 August 2009
Commentary – Attestation on Data AccuracyCommentary – Attestation on Data AccuracyFollowing adverse publicity on waiting list data, the Minister has written to Board
Chairs regarding data accuracy, laying out requirements for both the statement of
priorities for 2009-10 and the annual report. In that letter he states that”
"I wish to reiterate that you and your board are accountable for the accuracy of data that your
health service reports. I expect that each board makes this a responsibility of its Audit
Committee, and ensures that data accuracy is subject to appropriate controls, including regular
internal audit. In future, I will specify this responsibility in the Statement of Priorities".
"In addition, I will require each health service board to provide a statement in its annual report
to Parliament that it has all appropriate systems and processes in place to assure the quality of
reported data, and to identify those measures".
2222
3. Revenue Indicators
To be completed by all health services
Average Collection Days
2009 2008
Private
TAC
VWA
Other Compensable
Psychiatric
Residential Aged Care
Debtors Outstanding as at 30 June 2009
Under 30
days
31-60 days
61-90 days
Over 90 days
Total 30/6/09
Total 30/6/08
Private
TAC
VWA
Other Compensable
Psychiatric
Residential Aged Care
ABBREVIATIONS:TAC Transport Accident Commission
VWA Victorian WorkCover Authority
2323
Classifying Transactions to the Health Service Classifying Transactions to the Health Service Agreement (HSA) or Hospital and Community Agreement (HSA) or Hospital and Community Initiatives (H&CI)Initiatives (H&CI)
The HSA category encompasses all the services that DHS funds, partly or wholly via a Health
Services Agreement and/or Statement of Priorities. The HSA category also encompasses funding
from third parties (eg Commonwealth) that support the operations of these services.
Examples of transactions to be classified to the HSA category which have been previously
treated inconsistently include:
Low care aged residential care services (hostels). Direct funding support has been
provided in 2008-09 (HSUA wage increase) and indirect resources are provided by DHS to
support accreditation.
Program of Aids for Disabled People. This is a service funded through the HSA.
Public hospital services provided to privately insured and other non-public patients. Unless
provided directly through separate specific purpose funds established in accordance with
DHS business rules, services to these patients are to be treated as a full or partial cost
recovery extension of an HSA funded service.
The H&CI category encompasses health expenses and revenues relating to health services that
are not supported by the HSA as well as expenses and revenues for other kinds of services.
Services to be classified to the H&CI category include:
Private hospitals owned by the public hospital/health service
Services provided under contract to co-located private hospitals
Separate internal and restricted specific purpose funds selling goods or services of a retail
or commercial or medical nature to external parties (eg. cafeterias, food catering, car park,
linen services, cleaning services, privatised clinical services)
Health services that are wholly funded by the Commonwealth, plus client co-payments (eg.
CACPs, EACH, Day Therapy Centres)
Services provided to DHS under non-HSA arrangements, such as commercial contracts
Health services provided on a contractual basis to external parties (eg. public hospital
beds provided to private hospitals)
Special projects and trust funds that are required to be accounted for outside the HSA
category (eg. Coordinated Care trials)
Research wholly funded by the Commonwealth and other government or non-government
agencies.
2424
General IssuesGeneral Issues
Reporting Entity (Consolidation)Reporting Entity (Consolidation)
Under AASB 127 Consolidated and Separate Financial Statements, a reporting entity includes an economic entity comprising the parent entity and its controlled entities. Essentially, in the Standard, it is the control rather than ownership that provides the criterion which is fundamental to the identification of the group of related entities to be consolidated.
Control is defined in AASB 127 paragraph 4 as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
In AASB 127 paragraph 13, control is presumed to exist when the parent owns, directly or
indirectly through subsidiaries, more than half of the voting power of an entity unless, in
exceptional circumstances, it can be clearly demonstrated that such ownership does not
constitute control. Control also exists when the parent owns half or less of the voting power of
an entity when there is:
(a) power over more than half of the voting rights by virtue of an agreement with other
investors;
(b) power to govern the financial and operating policies of the entity under a statute or an
agreement;
(c) power to appoint or remove the majority of the members of the board of directors or
equivalent governing body and control of the entity is by that board or body; or
(d) power to cast the majority of votes at meetings of the board of directors or equivalent
governing body and control of the entity is by that board or body.
Further guidance on the concept of control is also provided in AASB Interpretation 112 Consolidation – Special Purpose Entities.
When control is established in accordance with AASB 127 or Interpretation 112, then the operations are to be reported in the consolidated accounts.
Where the gross revenue or total assets of the operations are equal to or less than five per cent of the principal entity's revenue or total assets, the operations are immaterial unless there is evidence to the contrary. Otherwise, the controlled entity information would normally be shown in aggregate with the entity total in the consolidated totals of the economic entity and not as a segment to the consolidated financial statements. Any inter/entity transactions between the entity and the controlled entity should be eliminated to avoid double counting.
A majority of criteria does not need to be satisfied to qualify for consolidation. Substance over form needs to be applied in the final analysis.
Comparative FiguresComparative Figures
Entities should also comply with the requirements on comparative information in AASB 101 Presentation of Financial Statements.
2525
Attestation on Compliance with Australian/New Attestation on Compliance with Australian/New Zealand Risk Management StandardZealand Risk Management Standard
I, <Donald Trump> certify that the <ABC Health Service> has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executives to understand, manage and satisfactorily control risk exposures. The audit committee verifies this assurance and that the risk profile of the <ABC Health Service> has been critically reviewed within the last 12 months.
< Signature >
<Donald Trump>
Accountable Officer
Big Town25 August 2009
Commentary – Attestation on Compliance with Commentary – Attestation on Compliance with Australian/New Zealand Risk Management StandardAustralian/New Zealand Risk Management StandardTo ensure that risks are being managed in a consistent manner, entities are required to attest in annual reports that:
services have risk management processes in place consistent with the Australian/New Zealand Risk Management Standard (or equivalent designated standard);
these processes are effective in controlling the risks to a satisfactory level; and
a reasonable body or audit committee verifies that view
Attestation of compliance should be made annually in the report of operations and the person making the attestation, usually the chief executive officer or accountable officer, should not make the attestation unless the audit committee or responsible body (for instance the board of a statutory authority) agrees that such an assurance can be given.
Entities are strongly encouraged to read the Victorian Government Risk Management Framework published by the Department of Treasury and Finance for more information on Risk Management Standard.
2626
Disclosure IndexDisclosure Index
The Annual Report of the <ABC Health Service> is prepared in accordance with all relevant
Victorian legislation. This index has been prepared to facilitate identification of the
Department’s compliance with statutory disclosure requirements.
Note: This Disclosure Index consists of 2 pages, and is not required to be completed by denominational hospitals.
Legislation
Requirement Page Reference
Ministerial DirectionsMinisterial Directions
Report of Operations
Charter and purpose
FRD 22B Manner of establishment and the relevant Ministers 11, 133
FRD 22B Objectives, functions, powers and duties 11
FRD 22B Nature and range of services provided 11
Management and structure
FRD 22B Organisational structure 11
Financial and other information
FRD 10 Disclosure index 13, 27
FRD 11 Disclosure of ex-gratia payments 14, 76
FRD 21A Responsible person and executive officer disclosures 14, 133, 134
FRD 22B Application and operation of Freedom of Information Act 1982 13
FRD 22B Application and operation of Whistleblowers Protection Act 2001 13
FRD 22B Compliance with building and maintenance provisions of Building Act 1993
13
FRD 22B Details of consultancies over $100,000 12
FRD 22B Details of consultancies under $100,000 12
FRD 22B Major changes or factors affecting performance 12
FRD 22B Occupational health and safety 13
FRD 22B Operational and budgetary objectives and performance against objectives
12
FRD 22B Significant changes in financial position during the year 12
FRD 22B Statement of availability of other information 13
FRD 22B Statement of merit and equity 11
FRD 22B Statement on National Competition Policy 13
FRD 22B Subsequent events 136
FRD 22B Summary of the financial results for the year 12
FRD 22B Workforce Data Disclosures 11
FRD 25 Victorian Industry Participation Policy disclosures 11, 14
SD 4.2(j) Report of Operations, Responsible Body Declaration 10
SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard
26
2727
Legislation
Requirement Page Reference
Financial Statements
Financial statements required under Part 7 of the FMA
SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements
45
SD 4.2(b) Operating Statement 34
SD 4.2(b) Balance Sheet 37
SD 4.2(b) Statement of Changes in Equity 39
SD 4.2(b) Cash Flow Statement 41
SD 4.2(c) Accountable officer’s declaration 31
SD 4.2(c) Compliance with Ministerial Directions 45
SD 4.2(d) Rounding of amounts 45
Legislation
Freedom of Information Act 1982 13
Whistleblowers Protection Act 2001 13
Victorian Industry Participation Policy Act 2003 11, 14
Building Act 1993 13
Financial Management Act 1994 1
2828
Financial Statements and Explanatory NotesFinancial Statements and Explanatory Notes
IntroductionIntroduction
The following financial statements and explanatory notes have been prepared to assist entities
in preparing their 2008-09 annual report.
The explanatory notes deal with a range of particular matters that are intended to provide
guidance to entities. The formats and notes for the annual report should not be seen as
restrictive; they are intended to guide entity management in determining the type and level of
information required. However, to ensure consistency in report presentation, entities should not
adopt a format substantially different from the format described in these guidelines.
It is emphasised that the formats and notes for the annual report are the minimum requirements
and entities are encouraged to provide additional information where necessary in the interests
of presenting fairly their results and financial position and achieving informative disclosure.
These Guidelines do not, and cannot be expected to cover all situations that may be
encountered in practice. There may be unusual events or transactions that are not
illustrated, where officers will need to use their professional judgement to make
appropriate disclosures. On the other hand, some disclosures shown as examples
may not be relevant and should be omitted where appropriate. Care should be taken
to ensure that disclosures accurately represent each entity’s actual accounting
policies and not repeated verbatim from these guidelines unless appropriate.
Therefore, knowledge of the disclosure provisions of Australian Accounting
Standards and Australian Interpretations are pre-requisites for the preparation of
financial statements.
These guidelines provide formats for:
Operating Statement.
Balance Sheet.
Statement of Changes in Equity.
Cash Flow Statement.
Accountable officer’s, chief finance & accounting officer’s and member of responsible
body’s declaration.
Notes to the financial statements.
The Consolidated column in the statements is only to be used where controlled entities
(subsidiaries) are included. Health services with no controlled entities are to use the Total
columns for the aggregate of health service and segment items. The Operating Statement,
Balance Sheet, Statement of Changes in Equity and Cash Flow Statement must be cross-
referenced to notes to explain relevant items included in those statements.
VAGO’s audit report on the financial statements will be signed and dated on the basis of the
final set of accounts signed by the entity.
Financial statements, having been subject to an entity’s quality assurance processes, are to be
submitted for audit by VAGO, by 24 July 2009 for material entities and within 8 weeks of the
end of the financial year for non-material entities (s45 (2) of the Act), by 25 August 2009
(though to meet Ministerial tabling timelines non-material entities should aim for 10
August 2009). VAGO will audit the financial statements to meet annual reporting requirements
under the Act.
2929
Commentary – Financial ReportMateriality and AggregationMateriality and AggregationEach material class of similar items shall be presented separately in the financial report.
Items of a similar nature or function shall be presented separately unless they are immaterial.
ConsistencyConsistency
The presentation and classification of items in the financial report shall be retained from one
period to the next unless:
(a) it is apparent, following a significant change in the nature of the entities operations or
a review of its financial report, that another presentation or classification would be
more appropriate having regard to the criteria for the selection and application of
accounting policies in AASB 108 Accounting Policies, Changes in Accounting Estimates
and Errors; or
(b) an Australian Accounting Standard requires a change in presentation.
Goods and Services Tax (GST)Goods and Services Tax (GST)Interpretation 1031 Accounting for Goods and Services Tax (GST) provides that assets shall
be recognised net of the amount of goods and services tax (GST), except where:
the amount of GST incurred by a purchaser that is not recoverable from the taxation
authority shall be recognised as part of the cost of acquisition of an asset or as part of
an item of expense.
the interpretation provides that receivables and payables shall be stated with the
amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority shall be
included as part of receivables or payables in the balance sheet.
OffsettingOffsettingIncome, expenses, assets and liabilities can only be offset where required or permitted by an
Accounting Standard, for example, AASB 132 Financial Instruments: Presentation and
Financial Reporting Directions issued by DTF.
3030
<ABC Health Service><ABC Health Service>
Board member’s, accountable officer’s andBoard member’s, accountable officer’s and chief finance & accounting officer’schief finance & accounting officer’s
declarationdeclaration
We certify that the attached financial report for <ABC Health Service> has
been prepared in accordance with Standing Direction 4.2 of the Financial
Management Act 1994, applicable Financial Reporting Directions, Australian
Accounting Standards, Australian Accounting Interpretations and other
mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the Operating
Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow
Statement and notes forming part of the financial report, presents fairly the
financial transactions during the year ended 30 June 2009 and financial position
of <ABC Health Service> at 30 June 2009.
We are not aware of any circumstance which would render any particulars
included in the financial report to be misleading or inaccurate.
We authorise the attached financial report for issue on this day.
<Signature> <Signature> <Signature>
<Donald Duck>
Board Member
Big Town
25 August 2009
<Donald Trump>
Accountable Officer
Big Town
25 August 2009
<Robin Hood>
Chief Finance & Accounting
Officer
Big Town
25 August 2009
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3131
Auditor-General’s ReportAuditor-General’s Report
Please insert a copy of the VAGO’s original audit report.
A reproduction of the audit report is not acceptable.
VAGO’s report comprises 2 pages.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3232
Auditor-General’s ReportAuditor-General’s ReportPage 2Page 2
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3333
Note Parent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Revenue from Operating Activities 2 474,783 443,637 476,195 445,012 Revenue from Non- operating Activities 2 152 9 208 9 Employee Benefits 3 (346,359) (330,167) (347,731) (331,412) Non Salary Labour Costs 3 (7,396) (6,630) (7,397) (6,631) Supplies & Consumables 3 (73,805) (67,512) (73,898) (67,626) Other Expenses From Continuing Operations 3 (46,353) (43,989) (46,576) (44,243) Share of Net Result of Associates & J oint Ventures Accounted for using the Equity Method 12 6 4 6 4
Net Result Before Capital & Specific Items*
1,028 (4,648) 807 (4,887)
Capital Purpose Income 2 32,890 6,733 32,948 6,774 Specific Income 2e 3,000 10 3,000 10
Available- for- Sale Revaluation Reserve gain/ (loss) recognised 20a 6 5 8 8 Impairment of Non- Financial Assets 3 (10) (8) (10) (8) Impairment of Financial Assets 3 - - - - Depreciation and Amortisation 4 (31,512) (18,287) (31,607) (18,365) Specific Expense 3c (1,006) (4) (1,006) (4) Finance Costs 5 (91) (56) (91) (56) Assets Provided Free of Charge - - - - Expenditure using Capital Purpose Income 3 (8,365) - (8,365) -
NET RESULT FOR THE YEAR^ (4,060) (16,255) (4,316) (16,528)
This Statement should be read in conjunction with the accompanying notes.
If the service has a discontinued operation for the year, the above mentioned heading will be "Net Result from Continuing Operations ". The service will then require a line below this called "Profit/ (Loss) from Discontinued Operations ". Underneath this, a line called "Net Result For the Year" is to be inserted. This line is the total from Continuing Operations +/- Discontinued Operations.
ABC Health ServiceOperating StatementFor the Year Ended 30 J une 2009
* If the service has a discontinued operation for the year, the above mentioned heading will be "Net Result From Continuing Operations Before Capital & Specific Items "
Operating Statement
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3434
Commentary – Operating Statement
Accounting Standard AASB 101 Presentation of Financial Statements sets out the presentation
of the Operating Statement.
The Operating Statement has been developed to be consistent with existing Government,
Departmental and Health Service sector requirements. The notes supporting this statement are
arranged to identify services supported by Health Service Agreement and those supported by
Hospital and Community Initiatives.
In developing the Operating Statement, reference has been made to the AIMS F1 return. In
preparing the Operating Statement, the Health Service should refer to the relevant
classifications and definitions in the Finance and Accounting Manual and AIMS guidelines.
The line item ‘Net Result Before Capital & Specific Items1’ must be less prominent than the line
item ‘Net Result For The Period1’.
Revenues / gains should be reported as a positive amount and expenses / losses should be
reported as a negative amount (i.e. in brackets).
-------------------------
(1) If there is a discontinued operation, then the headings mentioned above will have the words “From Continuing
Operations” inserted into them
Recognition of RevenueRecognition of RevenueAASB 1004 Contributions draws a distinction between reciprocal and non-reciprocal transactions. The Standard states that an entity receives a non-reciprocal transfer where assets or services are provided or liabilities extinguished without the entity directly giving approximately equal value in exchange to the other party or parties to the transfer. The revenue arising from the transfer must be recognised when the entity gains control of the transfer. It follows that a reciprocal transfer can be deferred and reported as a liability.
For a better understanding of AASB 1004, you are advised to familiarise yourself with the full text of this Standard and Hospital Circular 34/2008.
Note 1(ad) of these guidelines, contains a broad statement in relation to revenue recognition that each entity needs to elaborate upon, in order to fully disclose material revenue recognition policy for each revenue source.
Capital Purpose Income and Minor Works GrantsCapital Purpose Income and Minor Works GrantsAs outlined in the financial section of the AIMS Manual, capital purpose income refers to all tied grants, donations and bequests received for the purpose of acquiring non-current assets such as capital works, plant and equipment. As such these receipts should be reported as part of Capital Purpose Income in Note 2. Similarly, the cost of equipment donated by medical practitioners should also be reported under this heading.
Capital Purpose Income is further defined in section 5.6 of Chart of Accounts - Business Rules. A copy can be accessed at http://www.health.vic.gov.au/accounts/bizrules-v9-august08.pdf
The Department established an annual capital equipment funding pool called Targeted Equipment Grants. From this funding pool, Health Services bid for grants towards higher-cost replacement or new items of equipment not funded under other special-purpose capital funding programs. The allocation of these grants is submission based and for the purchase of
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3535
equipment only. As such funding received under this program must be reported as capital purpose income.
Non-Refundable FeesNon-Refundable FeesAccommodation bonds received by residential aged care services may relate to future services to be provided. In that instance, the accommodation bonds should be apportioned between financial years. Accommodation bonds which are deferred to future financial years should be described as deferred revenue and be classified between current and non-current liabilities.
Refundable FeesRefundable FeesThe liability which arises from refundable ingoing fees or accommodation bonds received by residential aged care services should be recorded as patients' monies held in trust and classified as current liabilities. These fees should not be classified as “Interest Bearing Liabilities”.
Reporting of Capital and Specific ItemsReporting of Capital and Specific Items
The amounts for capital and specific items (eg, depreciation, capital purpose income, Specific
Income, specific expense etc) must be the same as those reported in the supporting notes to
the Operating Statement.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3636
Balance Sheet
Note Parent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Current AssetsCash and Cash Equivalents 6 20,615 14,751 22,403 15,181 Receivables 7 25,005 18,469 25,175 18,446 Other Financial Assets 8 54 - 54 - Inventories 9 4,862 4,389 4,862 4,389 Non-Financial Assets Classified as Held For Sale 10 100 - 100 - Financial Assets Classified as Held for Sale - - - - Other Current Assets 11 586 441 593 441 Total Current Assets 51,222 38,050 53,187 38,457
Non-Current AssetsReceivables 7 10,226 21,788 10,228 21,788 Other Financial Assets 8 10,100 - 10,100 - Investments Accounted for using the Equity Method 12 18 10 18 10 Property, Plant & Equipment 13 607,135 611,833 612,369 614,668 Intangible Assets 14 1,800 1,982 1,800 1,982 Investment Properties 15 5 - 5 - Other Non-Current Assets 11 35 - 35 - Total Non-Current Assets 629,319 635,613 634,555 638,448 TOTAL ASSETS 680,541 673,663 687,742 676,905
Current LiabilitiesPayables 16 42,199 41,369 42,199 41,374 Interest Bearing Liabilities 17 7 7 7 7 Employee Benefits and Related On-Costs Provisions 18 89,990 82,348 90,100 82,425 Other Liabilities 19 437 8,880 2,971 10,200 Total Current Liabilities 132,633 132,604 135,277 134,006
Non-Current LiabilitiesPayables 16 175 146 175 146 Interest Bearing Liabilities 17 - - - - Employee Benefits and Related On-Costs Provisions 18 9,340 9,184 9,428 9,259 Other Liabilities 19 501 - 501 - Total Non-Current Liabilities 10,016 9,330 10,104 9,405 TOTAL LIABILITIES 142,649 141,934 145,381 143,411 NET ASSETS 537,892 531,729 542,361 533,494
EQUITYProperty, Plant & Equipment Revaluation Reserve 20a 124,752 124,752 125,726 125,726 Financial Asset Available for Sale Revaluation Reserve 20a 24 22 29 27 General Purpose Reserve 20a - - - - Restricted Specific Purpose Reserve 20a 1,933 3,971 2,056 4,094 Contributed Capital 20b 396,915 386,048 401,391 387,544 Accumulated Surpluses/(Deficits) 20c 14,268 16,936 13,159 16,103 TOTAL EQUITY 20d 537,892 531,729 542,361 533,494
Contingent Liabilities and Contingent Assets 25Commitments for Expenditure 24
This Statement should be read in conjunction with the accompanying notes.
Balance SheetAs at 30 J une 2009
ABC Health Service
Commentary – Balance Sheet
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3737
Balance Sheet
Accounting Standard AASB 101 Presentation of Financial Statements sets out the
presentation of the Balance Sheet.
Presentation of Assets and LiabilitiesPresentation of Assets and LiabilitiesAssets and liabilities must be categorised as either current or non-current categories,
except when a presentation based on liquidity provides information that is reliable and is
more relevant. Where the assets or liabilities are aggregated, amounts expected to be
recovered or settled both before and after twelve months from the reporting date must be
separately disclosed.
Additional DisclosuresAdditional DisclosuresWhere relevant, further sub-classifications of amounts should be disclosed separately in
accordance with AASB 101 (74) on either the face of the Balance Sheet or in the notes.
Line items, sub-headings and sub-totals in addition to those required by AASB 101 (68,
68A) must be separately disclosed on the face of the Balance Sheet when required by an
Accounting Standard, or when necessary for an understanding of the health service’s
financial position.
Presentation of a Non-Current Asset Classified as Held for SalePresentation of a Non-Current Asset Classified as Held for SaleAn entity shall not reclassify or re-present amounts presented for non-current assets as held
for sale in the balance sheets for prior periods to reflect the classification in the balance
sheet for the latest period presented.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
3838
Note Parent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Total equity at beginning of financial year 531,726 178,323 533,489 180,349 Effects of changes in accounting policy
Accumulated Surpluses/ (Deficits) 20c (646) - (666) - Effects of correction of errors 33 - - - - (specify each component of equity adjusted) - - - -
Restated total equity at beginning of financial year 531,080 178,323 532,823 180,349 Gain/(loss) on Asset Revaluation 20a - 87,912 - 87,922
Share of increments in reserves attributable to associates 20a - - - - Share of increments in reserves attributable to jointly controlled entities 20a - - - - Available-for-Sale Investments Reserve: Gain/(Loss) taken to equity 20a 8 8 10 13 Transferred to profit or loss for the period 20a (6) (5) (8) (8) Other (describe) 3 - 5 -
NET INCOME RECOGNISED DIRECTLY IN EQUITY 5 87,915 7 87,927 Net result for the year (4,060) (16,255) (4,316) (16,528) TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR (4,055) 71,660 (4,309) 71,399
Transactions with the State in its capacity as owner 20b 10,867 281,746 13,847 281,746 Total Equity at the end of the financial year 537,892 531,729 542,361 533,494
This Statement should be read in conjunction with the accompanying notes.
Statement of Changes in EquityFor the Year Ended 30 J une 2009
ABC Health Service
Commentary – Statement of Changes in EquityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should
ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.3939
Accounting Standard AASB 101 Presentation of Financial Statements sets out the presentation
of the Statement of Changes in Equity.
Information to be disclosedInformation to be disclosed
On the face of the statementOn the face of the statement
A Statement of Changes in Equity should show the following on the face of the statement:
a) profit or loss for the period;
b) each item of income and expense for the period that, as required by other Standards, is
recognised directly in equity, and the total of these items;
c) total income and expense for the period (calculated as the sum of (a) and (b)), showing
separately the total amounts attributable to equity holders of the parent and to
minority interest; and
d) for each component of equity, the effects of changes in accounting policies and
corrections of errors recognised in accordance with AASB 108 Accounting Policies,
Changes in Accounting Estimates and Errors.
A Statement of Changes in Equity that comprises only these items shall be titled a Statement
of Recognised Income and Expense.
Where an entity recognises actuarial gains and losses with respect to defined benefit plans
outside profit or loss, the entity shall present a Statement of Recognised Income and Expense
containing only the items listed above. The entity cannot present the more detailed statement
as illustrated in these guidelines.
Either on the face of the statement or in the notesEither on the face of the statement or in the notes
An entity should also present, either on the face of the Statement of Changes in Equity or in
the notes to the financial statements:
a) the amounts of transactions with equity holders acting in their capacity as equity
holders, showing separately distributions to equity holders;
b) the balance of accumulated funds at the beginning of the period and at the reporting
date, and the changes during the period; and
c) a reconciliation between the carrying amount of each class of contributed equity and
each reserve at the beginning and the end of the period, separately disclosing each
change.
Full reconciliation of each class of equity should be included in the equity note.
These disclosures have not been illustrated in the example on the face of the Statement of Changes in Equity. These disclosure requirements are illustrated in Note 20 in the guide.
OtherOtherChanges in an entity’s equity between two reporting dates reflect the increase or decrease in
its net assets during the period. Except for changes resulting from transactions with equity
holders acting in their capacity as equity holders and transaction costs directly related to such
transactions, the overall change in equity during a period represents the total amount of
income and expenses, including gains and losses, generated by the entities activities during
that period (whether those items of income and expenses are recognised in profit or loss or
directly as changes in equity).
Note that where an entity has no amounts applicable to any individual line item, that line item
should not be included in the Statement of Changes in Equity.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
4040
Note Parent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Grants from Government 425,883 391,473 425,883 391,589 Patient and Resident Fees Received 14,202 15,706 15,320 17,009 Private Practice Fees Received 6,795 7,950 6,795 7,950 Donations and Bequests Received 2,259 5,532 2,259 5,532 GST Received from/(paid to) ATO (31,647) (27,517) (31,647) (27,517) Recoupment from private practice for use of hospital facilities 18,841 14,703 18,841 14,703 Interest Received 936 815 936 815 Dividend Received - - - - Other Receipts (disclose material items) 41,717 32,704 41,779 32,719 Employee Benefits Paid (338,140) (319,112) (339,466) (320,359) Non Salary Labour Costs (8,074) (7,308) (8,074) (7,308) Payments for Supplies & Consumables (76,412) (64,905) (76,510) (65,014) Finance Costs (91) (56) (91) (56) Other Payments (disclose material items) (46,564) (46,551) (46,797) (46,807) Cash Generated from Operations 9,705 3,434 9,228 3,256
Capital Grants from Government 22,475 7,034 22,475 7,034 Capital Grants from Non- Government 3,957 - 3,957 - Capital Donations and Bequests Received - - 3 - Other Capital Receipts (disclose material items ) 127 - 1,395 (68)
NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES
21 36,264 10,468 37,058 10,222
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investments (10,154) - (10,154) - Payments for Non- Financial Assets (20,976) (26,101) (22,780) (26,101) Proceeds from sale of Non- Financial Assets 26 317 26 317 Proceeds from Sale of Investments - - - - Other (disclose major items) - - - - NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES (31,104) (25,784) (32,908) (25,784)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Borrowings 670 8,187 670 8,187 Repayment of Borrowings - - - - Repayment of Finance Leases - - - - Contributed Capital from Government 30 - 30 - Repayment of Capital to Government - - - - NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES 700 8,187 700 8,187 NET INCREASE/ (DECREASE) IN CASH HELD 5,860 (7,129) 4,850 (7,375) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 14,739 21,868 14,603 21,978 CASH AND CASH EQUIVALENTS AT END OF PERIOD 6 20,599 14,739 19,453 14,603
Non- Cash Financing and Investing Activities 22
This Statement should be read in conjunction with the accompanying notes
Cash Flow Statement For the Year Ended 30 J une 2009
ABC Health Service
OLE_LINKOLE_LINK
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
4141
Commentary - Cash Flow StatementAccounting Standards for the Cash Flow Statement are set out in AASB 107 Cash Flow Statements.The financial statements shall disclose by way of note, the policy adopted for determining which items are classified as cash in the Cash Flow Statement.
Cash and cash equivalents Cash and cash equivalents Cash assets include cash on hand and cash equivalents, where;
Cash on hand means notes and coins held, and deposits held at call with a financial institution
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
The cash equivalents are restrictive as to maturity periods and risk of changes in value. A short period to maturity generally means that an investment qualifies as a cash equivalent only when it has a maturity of three months or less from the date of acquisition.
Reporting of gross or net cash flowsReporting of gross or net cash flowsGross cash inflows and outflows must be separately disclosed, except for the following items which may be reported on a net basis:
Items where the entity is, in substance, holding or disbursing cash on behalf of its customers (eg. funds held for customers by a fund manager); and
Items where turnover is quick, the amounts are large, and the maturities are short (quick turnover means that transactions occur on virtually a day-to-day basis)
Furthermore, the amounts of cash at the beginning and end of the reporting period shall be shown in the Cash Flow Statement. The cash balance as at the end of the reporting year shown in the Cash Flow Statement shall be reconciled by way of note in the financial statements to the related items in the Balance Sheet of the same reporting period.
A reconciliation of cash and net cash used in operating activities to net results must be disclosed as a note.
If entities merge or acquire entities, the cash in bank from the acquired entities will be a cash inflow to the entity. A note to the statement will be required to describe the acquisition as a non-cash transaction if no purchase amount is paid. Acquisitions that do not involve cash, for example an asset swap or liability undertaking, must be reported as a note.
Classification of cash flowsClassification of cash flowsCash flows must be classified as arising from operating, investing or financing activities, as appropriate. Other classifications are not permitted.
Interest and dividendsInterest and dividendsAs per FRD 110 Cash Flow Statements, interest paid and interest and dividends received must be classified as operating cash flows.
Capital GrantsCapital GrantsCapital appropriations from Government must be presented under “Cash Flows from Operating Activities” unless the grant is an appropriation for additions to net asset base or is formally designated to be transferred as contributed capital, in which case, it must be classified as cash flows from financing activities. Refer to FRD 110 for further details.
Goods and Services Tax (GST)Goods and Services Tax (GST)Cash flows relating to GST must be included in the Cash Flow Statement on a gross basis in accordance with AASB 107 Cash flow statementsThe GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority must be, classified as operating cash flows.Additional guidance on accounting for GST is provided in Interpretation 1031 Accounting for the Goods and Services Tax (GST).
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity shouldN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.ensure that their accounting policies are presented in their financial statements.
4242
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Notes to the Financial Statements 30 June2009
Table of ContentsNote1 Statement of Significant Accounting Policies........................................................................452 Revenue...............................................................................................................................652a Analysis of Revenue by Source.............................................................................................672b Patient and Resident Fees....................................................................................................732c Net Gain/(Loss) on Disposal Non-Current Assets...................................................................742d Assets Received Free of Charge or For Nominal Consideration............................................742e Specific Income....................................................................................................................753 Expenses..............................................................................................................................763a Analysis of Expenses by Source...........................................................................................783b Analysis of Expenses by Internal and Restricted Specific Purpose Funds for Services
Supported by Hospital and Community Initiatives..............................................................823c Specific Expenses.................................................................................................................824 Depreciation and Amortisation.............................................................................................845 Finance Costs.......................................................................................................................856 Cash and Cash Equivalents..................................................................................................867 Receivables..........................................................................................................................878 Other Financial Assets..........................................................................................................899 Inventories...........................................................................................................................9110 Non-Financial Assets Classified as Held for Sale...................................................................9211 Other Assets.........................................................................................................................9312 Investments Accounted for Using the Equity Method...........................................................9413 Property, Plant & Equipment................................................................................................9614 Intangible Assets..................................................................................................................9915 Investment Properties........................................................................................................10116 Payables.............................................................................................................................10217 Interest Bearing Liabilities..................................................................................................10418 Employee Benefits and Related On-Costs Provisions..........................................................10619 Other Liabilities..................................................................................................................10920 Equity.................................................................................................................................11021 Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating
Activities...........................................................................................................................11322 Non-Cash Financing and Investing Activities......................................................................11423 Financial Instruments.........................................................................................................11524 Commitments for Expenditure...........................................................................................12525 Contingent Assets and Contingent Liabilities.....................................................................12826 Segment Reporting............................................................................................................12927 Jointly Controlled Operations and Assets............................................................................13228a Responsible Person Disclosures..........................................................................................13328b Executive Officer Disclosures.............................................................................................13429 Events occurring after the Balance Sheet Date..................................................................13630 Controlled Entities..............................................................................................................13731 Economic Dependency.......................................................................................................13732 Discontinued Operations....................................................................................................13833 Correction of Error and Revision of Estimates....................................................................140
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4343
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Notes to the Financial Statements
A contents page for notes is not mandatory; however it may assist readers to understand the financial report.
Content
The notes to the financial statements of an entity shall:
a) Present information about the basis of preparation of the financial report and the specific accounting policies used in accordance with paragraphs 108-115 of AASB 101 Presentation of Financial Statement;
b) Disclose the information required by Australian Accounting Standards that is not presented on the face of the balance sheet, operating statement, statement of changes in equity or cash flow statement; and
c) Provide additional information that is not presented on the face of the balance sheet, operating statement, statement of changes in equity or cash flow statement, but is relevant to an understanding of any of them.
Systematic structure
Notes shall, as far as practicable, be presented in a systematic manner. Each item on the face of the balance sheet, operating statement, statement of changes in equity and cash flow statement shall be cross referenced to any related information in the notes.
Notes are normally presented in the following order, which assists users in understanding the financial report and comparing them with financial reports of other entities:
a) A statement that the financial statements have been prepared in accordance with Australian Accounting Standards (refer paragraph 15.2 AASB 101);
b) A summary of significant accounting policies applied (refer to paragraph 108 of AASB 101);
c) Supporting information for items presented on the face of the balance sheet, operating statement, statement of changes in equity and cash flow statement, in order in which each statement and each line item is presented; and
d) Other disclosures, including:
i. Contingent liabilities (refer to AASB 137) and unrecognised contractual commitments; and
ii. Non-financial disclosures; for example, the entity’s financial risk management objectives and policies (refer to AASB 7).
In some circumstances, it may be necessary or desirable to vary the ordering of specific items within the notes. For example, information on changes in fair value recognised in profit or loss may be combined with information on maturities of financial instruments, although the former disclosures relate to the operating statement and the latter relate to the balance sheet. Nevertheless, a systematic structure for the notes is retained as far as practicable.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4444
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 1: Statement of Significant Accounting PoliciesNote 1: Statement of Significant Accounting Policies(a) Statement of compliance(a) Statement of compliance
The financial report is a general purpose financial report which has been prepared on an
accrual basis in accordance with the Financial Management Act 1994 and applicable
Australian Accounting Standards (AASs) and Australian Accounting Interpretation. AASs
includes Australian equivalents to International Financial Reporting Standards.
The entity is a not-for profit entity and therefore applies the additional Aus paragraphs
applicable to “not-for-profit” entities under the AAS’s.
(b) Basis of preparation(b) Basis of preparation
The financial report is prepared in accordance with the historical cost convention, except for
the revaluation of certain non-financial assets and financial instruments, as noted. Cost is
based on the fair values of the consideration given in exchange for assets.
In the application of AASs management is required to make judgments, estimates and
assumptions about carrying values of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgments. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision, and future periods if the
revision affects both current and future periods.
Accounting policies are selected and applied in a manner which ensures that the resulting
financial information satisfies the concepts of relevance and reliability, thereby ensuring that
the substance of the underlying transactions or other events is reported.
The accounting policies set out below have been applied in preparing the financial report for
the year ended 30 June 2009, and the comparative information presented in these financial
statements for the year ended 30 June 2008.
(c)(c) Reporting Entity Reporting Entity
The financial report includes all the controlled activities of the <ABC Health Service>.
(d)(d) Rounding Of AmountsRounding Of Amounts
All amounts shown in the financial report are expressed to the nearest $1,000 (if total assets,
or revenue, or expenses are less than $10 million, amounts must be rounded off to the
nearest dollar) unless otherwise stated.
(e)(e) Principles of ConsolidationPrinciples of ConsolidationThe assets, liabilities, incomes and expenses of all controlled entities of the <ABC Health
Service> have been included at the values shown in their audited Annual Financial Reports.
Subsidiaries are entities controlled by <ABC Health Service>; control exists when <ABC
Health Service> has the power to govern the financial and operating policies of an entity so
as to obtain benefits from its activities. In assessing control, potential voting rights that
presently are exercisable are taken into account. Any inter-entity transactions have been
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4545
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
eliminated on consolidation. The consolidated financial statements include the audited
financial statements of the controlled entities listed in note 30.
(f)(f) Cash and Cash EquivalentsCash and Cash EquivalentsCash and cash equivalents comprise cash on hand and cash at bank, deposits at call and
highly liquid investments with an original maturity of 3 months or less, which are readily
convertible to known amounts of cash and are subject to insignificant risk of changes in
value.
For the cash flow statement presentation purposes, cash and cash equivalents includes bank
overdrafts, which are included as current borrowings in the balance sheet.
(g)(g) ReceivablesReceivables
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days
from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and
debts which are known to be uncollectible are written off. A provision for doubtful debts is
raised where doubt as to collection exists. Bad debts are written off when identified.
Receivables are recognised initially at fair value and subsequently measured at amortised
cost, using the effective interest rate method, less any accumulated impairment.
(h)(h) Inventories Inventories
Inventories include goods and other property held either for sale or for distribution at no or
nominal cost in the ordinary course of business operations. It includes land held for sale and
excludes depreciable assets.
Inventories held for distribution are measured at cost, adjusted for any loss of service
potential. All other inventories, including land held for sale, are measured at the lower of cost
and net realisable value.
Bases used in assessing loss of service potential for inventories held for distribution include
current replacement cost and technical or functional obsolescence. Technical obsolescence
occurs when an item still functions for some or all of the tasks it was originally acquired to do,
but no longer matches existing technologies. Functional obsolescence occurs when an item
no longer functions the way it did when it was first acquired.
Cost is assigned to land for sale (undeveloped, under development and developed) and to
other high value, low volume inventory items on a specific identification of cost basis (identify
classes).
Cost for all other inventory is measured on the basis of weighted average cost.
Inventories acquired for no cost or nominal considerations are measured at current
replacement cost at the date of acquisition.
(i)(i) Other Financial AssetsOther Financial Assets
Other financial assets are recognised and derecognised on trade date where purchase or sale
of an investment is under a contract whose terms require delivery of the investment within
the timeframe established by the market concerned, and are initially measured at fair value,
net of transaction costs.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4646
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
The <ABC Health Service> classifies its other financial assets between current and non-
current assets based on the purpose for which the assets were acquired. Management
determines the classification of its other financial assets at initial recognition.
<ABC Health Service> assesses at each balance sheet date whether a financial asset or
group of financial assets is impaired.
Financial assets at fair value through profit or loss
Financial assets held for trading purposes are classified as current assets and are stated at
fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any dividend or interest earned on the financial
asset. Fair value is determined in the manner described in Note 23.
(omit if not applicable)
(If a Health Service has reclassified any financial assets from this category into loans and
receivables category in accordance with AASB 2008-10, that fact may be disclosed in this
section of the policy note. Health Services should discuss any proposed reclassifications with
their VAGO representative at an early stage)
Loans and receivables
Trade receivables, loans and other receivables are recorded at amortised cost, using the
effective interest method, less impairment.
The effective interest method is a method of calculating the amortised cost of a financial
asset and of allocating interest income over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset, or, where appropriate, a shorter period.
(omit if not applicable)
Held-to-maturity investments
Where the entity has the positive intent and ability to hold investments to maturity, they are
stated at amortised cost less impairment losses.
(omit if not applicable)
Available-for-sale financial assets
Other financial assets held by the entity are classified as being available-for-sale and are
stated at fair value. Gains and losses arising from changes in fair value are recognised
directly in equity until the investment is disposed of or is determined to be impaired, at which
time the cumulative gain or loss previously recognised in equity is included in profit or loss
for the period. Fair value is determined in the manner described in Note 23.
(omit if not applicable)
(j)(j) Intangible AssetsIntangible Assets
Intangible assets represent identifiable non-monetary assets without physical substance such
as patents, trademarks, computer software and development costs (where applicable).
Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite
useful lives are carried at cost less accumulated amortisation and accumulated impairment
losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected
that additional future economic benefits will flow to the entity.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4747
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Amortisation is allocated to intangible assets with finite useful lives on a systematic (typically
straight-line) basis over the asset’s useful life. Amortisation begins when the asset is
available for use, that is, when it is in the location and condition necessary for it to be
capable of operating in the manner intended by management. The amortisation period and
the amortisation method for an intangible asset with a finite useful life are reviewed at least
at the end of each annual reporting period. In addition, an assessment is made at each
reporting date to determine whether there are indicators that the intangible asset concerned
is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds
their recoverable amount.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment
annually or whenever there is an indication that the asset may be impaired. The useful lives
of intangible assets that are not being amortised are reviewed each period to determine
whether events and circumstances continue to support an indefinite useful life assessment
for that asset. In addition, the entity tests all intangible assets with indefinite useful lives for
impairment by comparing its recoverable amount with its carrying amount:
annually, and
whenever there is an indication that the intangible asset may be impaired.
Any excess of the carrying amount over the recoverable amount is recognised as an
impairment loss.
Intangible assets with finite useful lives are amortised over a 10-15 year period (2008 10-15
years).
(k)(k) Property, Plant and EquipmentProperty, Plant and Equipment
Crown Land is measured at fair value with regard to the property’s highest and best use
after due consideration is made for any legal or constructive restrictions imposed on the
asset, public announcements or commitments made in relation to the intended use of the
asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken
into account until it is virtually certain that any restrictions will no longer apply.
Land and Buildings are recognised initially at cost and subsequently measured at fair value
less accumulated depreciation and impairment.
Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured
at fair value less accumulated depreciation and impairment.
Cultural, Collections, Heritage Assets and Other Non-Current Physical Assets that
the State intends to preserve because of their unique historical, cultural or environmental
attributes are measured at the cost of replacing the asset less, where applicable,
accumulated depreciation calculated on the basis of such cost to reflect the already
consumed or expired future economic benefits of the asset.
Restrictive nature of cultural and heritage assets, Crown land and infrastructure
assets
During the reporting period, the entity may hold cultural assets, heritage assets, Crown land
and infrastructure assets.
Such assets are deemed worthy of preservation because of the social rather than financial
benefits they provide to the community. The nature of these assets means that there are
certain limitations and restrictions imposed on their use and/or disposal.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4848
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(l)(l) Revaluations of Non-current Physical AssetsRevaluations of Non-current Physical AssetsNon-current physical assets measured at fair value are revalued in accordance with FRD
103D. This revaluation process normally occurs every five years, based upon the asset’s
Government Purpose Classification, but may occur more frequently if fair value assessments
indicate material changes in values. Revaluation increments or decrements arise from
differences between an asset’s carrying value and fair value.
Revaluation increments are credited directly to the asset revaluation reserve, except that, to
the extent that an increment reverses a revaluation decrement in respect of that class of
asset previously recognised at an expense in net result, the increment is recognised as
income in the net result.
Revaluation decrements are recognised immediately as expenses in the net result, except
that, to the extent that a credit balance exists in the asset revaluation reserve in respect of
the same class of assets, they are debited directly to the asset revaluation reserve.
Revaluation increases and revaluation decreases relating to individual assets within an asset
class are offset against one another within that class but are not offset in respect of assets in
different classes.
Revaluation reserves are not transferred to accumulated funds on derecognition of the
relevant asset.
In accordance with FRD 103D <ABC Health Service’s> non-current physical assets were
subjected to a detailed valuation in the current financial year.
(m)(m) Investment PropertyInvestment Property
Investment properties represent properties held to earn rentals or for capital appreciation or
both. Investment properties exclude properties held to meet service delivery objectives of the
State of Victoria.
Investment properties are initially recognised at cost. Costs incurred subsequent to initial
acquisition are capitalised when it is probable that future economic benefits in excess of the
originally assessed performance of the asset will flow to the entity.
Subsequent to initial recognition at cost, investment properties are revalued to fair value with
changes in the fair value recognised as income or expenses in the period that they arise. The
properties are not depreciated.
Rental revenue from the leasing of investment properties is recognised in the Operating
Statement in the periods in which it is receivable, as this represents the pattern of service
rendered through the provision of the properties.
(n)(n) Non Current Assets Classified as Held for SaleNon Current Assets Classified as Held for Sale
Non-current assets (and disposal groups) classified as held for sale are measured at the lower
of carrying amount and fair value less costs to sell, and are not subject to depreciation.
Non-current assets and disposal groups are classified as held for sale if their carrying amount
will be recovered through a sale transaction rather than through continuing use. This
condition is regarded as met only when the sale is highly probable and the asset’s sale (or
disposal group) is expected to be completed within one year from the date of classification.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
4949
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(o)(o) Depreciation and AmortisationDepreciation and AmortisationAssets with a cost in excess of $1,000 (2007-08 and 2008-09) are capitalised and
depreciation has been provided on depreciable assets so as to allocate their cost or valuation
over their estimated useful lives using the straight-line method. Estimates of the remaining
useful lives and depreciation method for all assets are reviewed at least annually. This
depreciation charge is not funded by the Department of Human Services.
The following table indicates the expected useful lives of non current assets on which the
depreciation charges are based.
2009 2008Buildings 30 to 40 Years 30 to 40 YearsPlant & Equipment 8 to 10 Years 8 to 10 YearsMedical Equipment 7 to 9 Years 7 to 9 YearsLeased Assets 2 to 4 Years 2 to 4 Years
(p)(p) Net Gain/(Loss) on Non-Financial AssetsNet Gain/(Loss) on Non-Financial Assets
Net gain/(loss) on non-financial assets includes realised and unrealised gains and losses from
revaluations, impairments and disposals of all physical assets and intangible assets.
Disposal of Non-Financial Assets
Any gain or loss on the sale of non-financial assets is recognised at the date that control of
the asset is passed to the buyer and is determined after deducting from the proceeds the
carrying value of the asset at that time.
Impairment of Non-Financial Assets
Intangible assets with indefinite useful lives (and intangible assets not yet available for use)
are tested annually for impairment (i.e. as to whether their carrying value exceeds their
recoverable amount, and so require write-downs) and whenever there is an indication that
the asset may be impaired. All other assets are assessed annually for indications of
impairment, except for (delete items if not applicable to the entity):
inventories;
financial assets;
certain biological assets related to agricultural activity;
investment properties that are measured at fair value;
non-current physical assets held for sale;
assets arising from construction contracts.
If there is an indication of impairment, the assets concerned are tested as to whether their
carrying value exceeds their possible recoverable amount. Where an asset’s carrying value
exceeds its recoverable amount, the difference is written-off as an expense except to the
extent that the write-down can be debited to an asset revaluation reserve amount applicable
to that class of asset.
It is deemed that, in the event of the loss of an asset, the future economic benefits arising
from the use of the asset will be replaced unless a specific decision to the contrary has been
made. The recoverable amount for most assets is measured at the higher of depreciated
replacement cost and fair value less costs to sell. Recoverable amount for assets held
primarily to generate net cash inflows is measured at the higher of the present value of
future cash flows expected to be obtained from the asset and fair value less costs to sell.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5050
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(q) Net Gain/(Loss) on Financial Instruments(q) Net Gain/(Loss) on Financial Instruments
Net gain/(loss) on financial instruments includes realised and unrealised gains and losses
from revaluations of financial instruments that are designated at fair value through profit or
loss or held-for-trading, impairment and reversal of impairment for financial instruments at
amortised cost, and disposals of financial assets.
Revaluations of Financial Instruments at Fair Value
The revaluation gain/(loss) on financial instruments at fair value excludes dividends or
interest earned on financial assets, which is reported as part of income from transactions.
Impairment of Financial Assets
Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as
written off are classified as an expense.
Financial Assets have been assessed for impairment in accordance with Australian
Accounting Standards. Where a financial asset’s fair value at balance date has reduced by 20
per cent or more than its cost price; or where its fair value has been less than its cost price
for a period of 12 or more months, the financial instrument is treated as impaired.
In order to determine an appropriate fair value as at 30 June 2009 for its portfolio of financial
assets, <ABC Health Service> obtained a valuation based on the best available advice using
an estimated [insert appropriate valuation method] through a reputable financial institution.
This value was compared against valuation methodologies provided by the issuer as at 30
June 2009. These methodologies were critiqued and considered to be consistent with
standard market valuation techniques.
Prices obtained from both sources were compared and were generally consistent with the full
portfolio. The above valuation process was used to quantify the level of impairment on the
portfolio of financial assets as at year end.
(r)(r) PayablesPayablesThese amounts consist predominantly of liabilities for goods and services.
Payables are initially recognised at fair value, then subsequently carried at amortised cost
and represent liabilities for goods and services provided to the health service prior to the end
of the financial year that are unpaid, and arise when the health service becomes obliged to
make future payments in respect of the purchase of these goods and services.
The normal credit terms are usually Net 30 days.
(s)(s) ProvisionsProvisions
Provisions are recognised when the entity has a present obligation, the future sacrifice of
economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the present value of those cash flows.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5151
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(t)(t) Resources Provided and Received Free of Charge or for Nominal Resources Provided and Received Free of Charge or for Nominal
ConsiderationConsideration
Resources provided or received free of charge or for nominal consideration are recognised at
their fair value when the transferee obtains control over them, irrespective of whether
restrictions or conditions are imposed over the use of the contributions, unless received from
another entity or agency as a consequence of a restructuring of administrative arrangements.
In the latter case, such transfer will be recognised at carrying value. Contributions in the
form of services are only recognised when a fair value can be reliably determined and the
services would have been purchased if not donated.
(u)(u) Interest Bearing LiabilitiesInterest Bearing Liabilities
Interest bearing liabilities in the Balance Sheet are recognised at fair value upon initial
recognition. Subsequent to initial recognition, interest bearing liabilities are measured at
amortised cost with any difference between the initial recognised amount and the
redemption value being recognised in profit and loss over the period of the interest bearing
liability using the effective interest rate method. Fair value is determined in the manner
described in Note 23.
(v)(v) Functional and Presentation CurrencyFunctional and Presentation Currency
The presentation currency of the <ABC Health Service> is the Australian dollar, which has
also been identified as the functional currency of the entity.
(w)(w) Goods and Services Tax Goods and Services Tax Income, expenses and assets are recognised net of the amount of associated GST, unless the
GST incurred is not recoverable from the taxation authority. In this case it is recognised as
part of the cost of 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 recoverable from, or payable to, the taxation authority is included
with other receivables or payables in the balance sheet.
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 taxation
authority, are presented as operating cash flow.
Commitments and contingent assets and liabilities are presented on a gross basis.
(x)(x) Employee BenefitsEmployee Benefits
Wages and Salaries, Annual Leave, Sick Leave and Accrued Days Off
Liabilities for wages and salaries, including non-monetary benefits, annual leave
accumulating sick leave and accrued days off expected to be settled within 12 months of
the reporting date are recognised in the provision for employee benefits in respect of
employee’s services up to the reporting date, classified as current liabilities and measured
at nominal values.
Those liabilities that the entity are not expected to be settled within 12 months are
recognised in the provision for employee benefits as current liabilities, measured at present
value of the amounts expected to be paid when the liabilities are settled using the
remuneration rate expected to apply at the time of settlement.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5252
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Long Service Leave
Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability even where the <ABC Health Service> does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:
present value – component that the <ABC Health Service> does not expect to settle within 12 months; and
nominal value – component that the <ABC Health Service> expects to settle within 12 months.
Non-Current Liability – conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. Conditional LSL is required to be measured at present value.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.
SuperannuationSuperannuation
Defined contribution plansContributions to defined contribution superannuation plans are expensed when incurred.
Defined benefit plans
The amount charged to the Operating Statement in respect of defined benefit superannuation
plans represents the contributions made by the entity to the superannuation plans in respect
of the services of current entity staff. Superannuation contributions are made to the plans
based on the relevant rules of each plan.
Employees of the <ABC Health Service> are entitled to receive superannuation benefits and
the <ABC Health Service> contributes to both the defined benefit and defined contribution
plans. The defined benefit plan(s) provide benefits based on years of service and final
average salary.
The name and details of the major employee superannuation funds and contributions made
by the <ABC Health Service> are as follows:
Fund Contributions Paid or Payable for
the year
2009 2008
$’000 $’000
Defined benefit plans:
State Superannuation Fund – revised and new
Other
Defined contribution plans:
VicSuper
Other
Total
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5353
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
The <ABC Health Service> does not recognise any unfunded defined benefit liability in
respect of the superannuation plans because the entity has no legal or constructive
obligation to pay future benefits relating to its employees; its only obligation is to pay
superannuation contributions as they fall due. The Department of Treasury and Finance
administers and discloses the State’s defined benefit liabilities in its financial report.
Termination BenefitsTermination Benefits
Liabilities for termination benefits are recognised when a detailed plan for the termination
has been developed and a valid expectation has been raised with those employees affected
that the terminations will be carried out. The liabilities for termination benefits are recognised
in other creditors unless the amount or timing of the payments is uncertain, in which case
they are recognised as a provision.
On-CostsOn-Costs
Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual
leave and LSL accrued while on LSL taken in service) are recognised separately from
provisions for employee benefits.
(y)(y) Finance CostsFinance CostsFinance costs are recognised as expenses in the period in which they are incurred.
Finance costs include:
– interest on bank overdrafts and short-term and long-term borrowings;
– amortisation of discounts or premiums relating to borrowings;
– amortisation of ancillary costs incurred in connection with the arrangement of
borrowings; and
– finance charges in respect of finance leases recognised in accordance with AASB 117
Leases.
(z)(z) Residential Aged Care ServiceResidential Aged Care Service(Where the Residential Aged Care Service is an internal segment of the Health Service, not
separately incorporated)1
The XXX Residential Aged Care Service operations are an integral part of the <ABC Health
Service> and shares its resources. An apportionment of land and buildings has been made
based on floor space. The results of the two operations have been segregated based on
actual revenue earned and expenditure incurred by each operation in note 2b to the financial
statement.
The XXX Residential Aged Care has a separate Committee of Management and is
substantially funded from Commonwealth bed-day subsidies.
(Where a Residential Aged Care Service is separately incorporated a controlled entity
relationship must be assessed as per AASB 127.)
(aa)(aa) Joint VenturesJoint VenturesInterests in jointly controlled assets are accounted for by recognising in the <ABC Health
Service’s> financial statements, its share of assets, liabilities and any revenue and expenses
of such joint ventures. Details of the joint venture are set out in note 27.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5454
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(ab)(ab) Intersegment TransactionsIntersegment TransactionsTransactions between segments within the <ABC Health Service> have been eliminated to
reflect the extent of the <ABC Health Service’s> operations as a group.
(ac)(ac) Leases Leases
Leases of property, plant and equipment are classified as finance leases whenever the terms
of the lease transfer substantially all the risks and rewards of ownership to the lessee. All
other leases are classified as operating leases.
Finance Leases
Entity as lessor
Rental income from operating lease is recognised on a straight-line basis over the term of the
relevant lease.
Entity as lessee
Finance leases are recognised as assets and liabilities at amounts equal to the fair value of
the lease property or, if lower, the present value of the minimum lease payment, each
determined at the inception of the lease. The lease asset is depreciated over the shorter of
the estimated useful life of the asset or the term of the lease. Minimum lease payments are
allocated between the principal component of the lease liability, and the interest expense
calculated using the interest rate implicit in the lease, and charged directly to the operating
statement.
Operating Leases
Operating lease payments, including any contingent rentals, are recognised as an expense in
the operating statement on a straight line basis over the lease term, except where another
systematic basis is more representative of the time pattern of the benefits derived from the
use of the leased asset.
Lease Incentives
All incentives for the agreement of a new or renewed operating lease shall be recognised as
an integral part of the net consideration agreed for the use of the leased asset, irrespective of
the incentive’s nature or form or the timing of payments.
In the event that lease incentives are received to enter into operating leases, such incentives
are recognised as a liability. The aggregate benefits of incentives are recognised as a
reduction of rental expense on a straight-line basis, except where another systematic basis is
more representative of the time pattern in which economic benefits from the leased asset are
consumed.
Leasehold Improvements
The cost of leasehold improvements are capitalised as an asset and depreciated over the
remaining term of the lease or the estimated useful life of the improvements, whichever is
the shorter.
(ad)(ad) Income RecognitionIncome Recognition
Income is recognised in accordance with AASB 118 Revenue and is recognised as to the
extent it is earned. Unearned income at reporting date is reported as income received in
advance.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5555
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties
and taxes.
Government GrantsGovernment Grants
Grants are recognised as income when the entity gains control of the underlying assets in
accordance with AASB 1004 Contributions. For reciprocal grants, <ABC Health Service> is
deemed to have assumed control when the performance has occurred under the grant. For
non-reciprocal grants, <ABC Health Service> is deemed to have assumed control when the
grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal
depending on the terms of the grant.
Indirect ContributionsIndirect Contributions
– Insurance is recognised as revenue following advice from the Department of Human
Services.
– Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL
liability in line with the arrangements set out in the Metropolitan Health and Aged Care
Services Division Hospital Circular 34/2008.
Patient and Resident FeesPatient and Resident Fees
Patient fees are recognised as revenue at the time invoices are raised.
Private Practice FeesPrivate Practice Fees
Private practice fees are recognised as revenue at the time invoices are raised.
Donations and Other BequestsDonations and Other Bequests
Donations and bequests are recognised as revenue when received. If donations are for a
special purpose, they may be appropriated to a reserve, such as the specific restricted
purpose reserve.
Dividend RevenueDividend Revenue
Dividend revenue is recognised on a receivable basis.
Interest RevenueInterest Revenue
Interest revenue is recognised on a time proportionate basis that takes in account the
effective yield of the financial asset.
(ae)(ae) Fund AccountingFund Accounting
The <ABC Health Service> operates on a fund accounting basis and maintains three funds:
Operating, Specific Purpose and Capital Funds. The <ABC Health Service’s> Capital and
Specific Purpose Funds include unspent capital donations and receipts from fund-raising
activities conducted solely in respect of these funds.
(af)(af) Services Supported By Health Services Agreement and Services Supported Services Supported By Health Services Agreement and Services Supported By Hospital and Community InitiativesBy Hospital and Community Initiatives
Activities classified as Services Supported by Health Services Agreement (HSA) are
substantially funded by the Department of Human Services and includes Residential
Aged Care Services (RACS) and are also funded from other sources such as the
Commonwealth, patients and residents, while Services Supported by Hospital and
Community Initiatives (Non HSA) are funded by the Health Service's own activities or
local initiatives and/or the Commonwealth.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5656
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(ag)(ag) Change in Accounting PoliciesChange in Accounting Policies
In accordance with Victorian Government Financial Reporting Direction 103D ‘Non-Current
Physical Assets’, <ABC Health Service> measures plant and equipment, and medical
equipment assets at fair value from 1 July 2008. Previously these assets were measured at
cost. This change in accounting policy is required to ensure that Victoria’s Whole of
Government financial report, to which <ABC Health Service> is consolidated into, complies
with the requirements of AASB1049 Whole of Government and General Government Sector
Financial Reporting. As this change is the initial application of a policy to revalue assets in
accordance with AASB116 Property, Plant and Equipment the change is treated as a
revaluation in the current year.
(ah)(ah) Comparative InformationComparative Information
Where necessary the previous year’s figures have been reclassified to facilitate
comparisons.
(When comparative amounts are reclassified, disclose:
(a) the nature of the classification;
(b) the amount of each item or class of items that is reclassified; and
(c) the reason for the classification.
When it is impracticable to reclassify comparative amounts, disclose:
(d) the reason for not reclassifying the amounts; and
(e) the nature of the adjustments that would have been made if the amounts had been
reclassified.)
(ai)(ai) Amalgamations and MergersAmalgamations and Mergers
Assets and liabilities of the acquired (amalgamated) entities are taken up at book value at
date of acquisition (amalgamation). Crown assets acquired remain the property of the Crown,
however they are reported as assets of the entity, because effective control passes to the
entity along with a substantial benefit. (This note only applies for the first year of integration.)
(aj)(aj) Property, Plant & Equipment Revaluation ReserveProperty, Plant & Equipment Revaluation Reserve
The asset revaluation reserve is used to record increments and decrements on the
revaluation of non-current assets.
(ak)(ak) Financial Asset Available-for-Sale Revaluation ReserveFinancial Asset Available-for-Sale Revaluation Reserve
The available-for-sale revaluation reserve arises on the revaluation of available-for-sale
financial assets. Where a revalued financial asset is sold that portion of the reserve which
relates to that financial asset is effectively realised, and is recognised in the operating
statement. Where a revalued financial asset is impaired that portion of the reserve which
relates to that financial asset is recognised in the operating statement.
(al)(al) General ReservesGeneral Reserves
(Details of the nature and purpose of any such reserves.)
(am)Specific Restricted Purpose Reserve(am)Specific Restricted Purpose Reserve
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5757
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
A specific restricted purpose reserve is established where the entity has possession or title to
the funds but has no discretion to amend or vary the restriction and/or condition underlying
the funds received.
(an)Contributed Capital(an)Contributed Capital
Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to
Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for
additions to the net asset base have been designated as contributed capital. Other transfers
that are in the nature of contributions or distributions that have been designated as
contributed capital are also treated as contributed capital.
(ao) Net Result Before Capital & Specific Items(ao) Net Result Before Capital & Specific Items
The subtotal entitled ‘Net result Before Capital & Specific Items’ is included in the Operating
Statement to enhance the understanding of the financial performance of <ABC Health
Service>. This subtotal reports the result excluding items such as capital grants, assets
received or provided free of charge, depreciation, and items of an unusual nature and
amount such as specific revenues and expenses. The exclusion of these items are made to
enhance matching of income and expenses so as to facilitate the comparability and
consistency of results between years and Victorian Public Health Services. The Net result
Before Capital & Specific Items is used by the management of <ABC Health Service>, the
Department of Human Services and the Victorian Government to measure the ongoing result
of Health Services in operating hospital services.
Capital and specific items, which are excluded from this sub-total, comprise:
Capital purpose income, which comprises all tied grants, donations and bequests
received for the purpose of acquiring non-current assets, such as capital works, plant and
equipment or intangible assets. It also includes donations of plant and equipment (refer
note 1 (t)). Consequently the recognition of revenue as capital purpose income is based
on the intention of the provider of the revenue at the time the revenue is provided.
Specific income/expense, comprises the following items, where material:
o Voluntary departure packages
o Write-down of inventories
o Non-current asset revaluation increments/decrements
o Diminution in investments
o Restructuring of operations (disaggregation/aggregation of health services)
o Litigation settlements
o Non-current assets lost or found
o Forgiveness of loans
o Reversals of provisions
o Voluntary changes in accounting policies (which are not required by an accounting
standard or other authoritative pronouncement of the Australian Accounting
Standards Board)
Impairment of financial and non-financial assets, includes all impairment losses (and
reversal of previous impairment losses), which have been recognised in accordance with
note 1 (p) and (q)
Depreciation and amortisation, as described in note 1 (k) and (o)
Assets provided or received free of charge, as described in note 1 (t)N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity
should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.5858
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Expenditure using capital purpose income, comprises expenditure which either falls
below the asset capitalisation threshold (note 1 (j) and (k), or doesn’t meet asset
recognition criteria and therefore does not result in the recognition of an asset in the
balance sheet, where funding for that expenditure is from capital purpose income
(ap) Category Groups(ap) Category Groups
The <ABC Health Service> has used the following category groups for reporting purposes for
the current and previous financial years.
Admitted Patient Services (Admitted Patients) comprises all recurrent health
revenue/expenditure on admitted patient services, where services are delivered in public
hospitals, or free standing day hospital facilities, or alcohol and drug treatment units or
hospitals specialising in dental services, hearing and ophthalmic aids.
Mental Health Services (Mental Health) comprises all recurrent health
revenue/expenditure on specialised mental health services (child and adolescent, general
and adult, community and forensic) managed or funded by the state or territory health
administrations, and includes: Admitted patient services (including forensic mental health),
outpatient services, emergency department services (where it is possible to separate
emergency department mental health services), community-based services, residential and
ambulatory services.
Outpatient Services (Outpatients) comprises all recurrent health revenue/expenditure on
public hospital type outpatient services, where services are delivered in public hospital
outpatient clinics, or free standing day hospital facilities, or rehabilitation facilities, or alcohol
and drug treatment units, or outpatient clinics specialising in ophthalmic aids or palliative
care.
Emergency Department Services (EDS) comprises all recurrent health
revenue/expenditure on emergency department services that are available free of charge to
public patients.
Aged Care comprises revenue/expenditure form Home and Community Care (HACC)
programs, allied Health, Aged Care Assessment and support services.
Primary Health comprises revenue/expenditure for Community Health Services including
health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational
therapy.
Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health
revenue/expenditure on public hospital type services including palliative care facilities and
rehabilitation facilities, as well as services provided under the following agreements: Services
that are provided or received by hospitals (or area health services) but are delivered/received
outside a hospital campus, services which have moved from a hospital to a community
setting since June 1998, services which fall within the agreed scope of inclusions under the
new system, which have been delivered within hospital’s i.e. in rural/remote areas.
Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to
in the past as psychogeriatric residential services, comprises those Commonwealth-licensed
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
5959
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
residential aged care services in receipt of supplementary funding from DHS under the
mental health program. It excludes all other residential services funded under the mental
health program, such as mental health funded community care units (CCUs) and secure
extended care units (SECs).
Other Services excluded from Australian Health Care Agreement (AHCA) (Other)
comprises revenue/expenditure for services not separately classified above, including: Public
health services including Laboratory testing, Blood Borne Viruses / Sexually Transmitted
Infections clinical services, Kooris liaison officers, immunisation and screening services, Drugs
services including drug withdrawal, counselling and the needle and syringe program, Dental
Health services including general and specialist dental care, school dental services and
clinical education, Disability services including aids and equipment and flexible support
packages to people with a disability, Community Care programs including sexual assault
support, early parenting services, parenting assessment and skills development, and various
support services. Health and Community Initiatives also falls in this category group.
(aq)(aq) New Accounting Standards and InterpretationsNew Accounting Standards and Interpretations
Certain new accounting standards and interpretations have been published that are not
mandatory for 30 June 2009 reporting period. As at 30 June 2009, the following standards
and interpretations had been issued but were not mandatory for financial years ending 30
June 2009. <ABC Health Service> has not and does not intend to adopt these standards
early.
Standard / Interpretation Summary Applicable for reporting periods beginning on or ending on
Impact on Entities Annual Statements
AASB 8 Operating Segments.
Supersedes AASB 114 Segment Reporting.
Beginning 1 January 2009
Not applicable
AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 and AASB 1038]
An accompanying amending standard, also introduced consequential amendments into other Standards.
Beginning 1 January 2009
Impact expected to be not significant.
AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]
An accompanying amending standard, also introduced consequential amendments into other Standards.
Beginning 1 January 2009
All Australian government jurisdictions are currently still actively pursuing an exemption for government from capitalising borrowing costs.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
6060
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Standard / Interpretation
Summary Applicable for reporting periods beginning on or ending on
Impact on Entities Annual Statements
AASB 2008-3 Amendments to AAS arising from AASB 3 & AASB 127 [AASB 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretation 9 & 107]
This Standard gives effect to consequential changes arising from revised AASB 3 and amended AASB 127. The Prefaces to those Standards summarise the main requirements of those Standards.
Beginning 1 January 2009
Impact expected to be insignificant.
AASB 2008-5 Amendments to AASs arising from the Annual Improvements Project [AASBs 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 140, 141, 1023 & 1308]
A suite of amendments to existing standards following issuance of IASB Standard Improvements to IFRSs in May 2008. Some amendments result in accounting changes for presentation, recognition and measurement purposes.
Beginning 1 January 2009
Impact is being evaluated.
AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements project [AASB 1 & AASB 5]
The amendments require all the assets and liabilities of a for-sale subsidiary’s to be classified as held for sale and clarify the disclosures required when the subsidiary is part of a disposal group that meets the definition of a discontinued operation.
Beginning 1 January 2009
Impact expected to be insignificant.
AASB 2008-7 Amendments to AAS Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121, AASB 127 & AASB 136]
Changes mainly relate to treatment of dividends from subsidiaries or controlled entities
Beginning 1 January 2009
Impact expected to be insignificant.
AASB 2008-8 Amendments to Australian Accounting Standards – Eligible Hedged Items [AASB 139]
The amendments to AASB 139 clarify how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation as a hedged item, should be applied in particular situations.
Beginning 1 January 2009
Impact is being evaluated.
AASB 2008-9 Amendments to AASB 1049 for Consistency with AASB 101
Amendments to AASB 1049 for consistency with AASB 101 (September 2007) version.
Beginning 1 January 2009
Impact expected to be insignificant
AASB 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities [AASB 1, AASB 111 & AASB 123]
Amendments to Australian Accounting Standards to allow borrowing costs of Not-for Profit Public Sector Entities to be expensed
Beginning 1 January 2009
Impact expected to be insignificant
AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments [AASB 4, AASB 7, AASB 1023 & AASB 1038]
Amendments to AASB 7 to enhance disclosures about fair value measurements and liquidity risk. Editorial amendments to AASB 4, AASB 1023 and AASB 1038 resulting from the amendments to AASB 7
Beginning 1 January 2009
Impact expected to be insignificant
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
6161
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary - Summary of Significant Accounting Policies
The accounting policies illustrated above are commonly required examples only, and do not
necessarily represent the only treatment which may be appropriate for the item concerned and
do not cover all items that may be considered for inclusion in the summary of accounting
policies.
a) Note 1 to the financial statements, which is the statement of accounting policies, should
disclose in detail significant accounting principles and policies applied in preparing the
financial statements. It should be stated that the financial statements are general purpose
financial statements and that they adhere to the Financial Management Act 1994, Accounting
Standards issued by the Australian Accounting Standards Board and Urgent Issues Group
Interpretations.
b) An accounting policy is material or significant if its omission, non-disclosure or mis-statement
would cause the financial statements to mislead users when making evaluations or decisions.
c) The entity should include sufficient notes to provide explanatory material so as to present
fairly the financial statements of the entity.
d) Any changes in accounting policies which materially affect the financial statements for the
reporting period should be disclosed in a note stating the:
– nature of the change;
– reason (s) for the change; and
– financial effect of the change.
e) Any change in accounting policy which does not have a material effect on the financial
statements for the reporting period but which may have a significant effect on the financial
statements in subsequent periods should be disclosed in a note which states the:
– nature of the change;
– reason(s) for the change;
– change does not materially effect the current reporting period; and
– financial effect of the change in subsequent years.
f) The statement of accounting policies should include disclosure of:
The overall valuation policy for each class of assets, date of last valuation, name and
qualifications of valuer.
The method of inventory valuation, for example:
– first-in, first-out (FIFO);
– weighted average cost.
The depreciation policy adopted.
The basis of accounting for employee benefits.
The policy for disclosure of superannuation and accounting for superannuation costs.
The basis for distinguishing between capital funds, funds held for restricted purposes,
funds held in perpetuity and operating funds.
The method of accounting for leases.
The treatment of assets and liabilities acquired during the fiscal year in association with
either the integration of psychiatric services or amalgamation of health services.
Principles of consolidation.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
6262
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
The basis of accounting for investments.
The policy of capitalisation and measurement of intangible assets, including patents,
trademarks, goodwill and development costs.
New Accounting Standards and InterpretationsAustralian Accounting Standards Issued but not yet effective
When an entity has not applied a new Australian Accounting Standard that has been issued but
is not yet effective, the entity shall disclose:
(a) this fact: and
(b) known or reasonably estimable information relevant to assessing the possible impact
that application of the new Australian Accounting Standard will have on the entities
financial report in the period of initial application.
In complying with the requirement above, a entity considers disclosing:
(a) the title of the new Australian Accounting Standard;
(b) the nature of the impending change or changes in accounting policy;
(c) the date by which application of the standard is required;
(d) the date as at which it plans to apply the standard initially; and
(e) either:
i. discussion of the impact that initial application of the Standard is expected to
have on the entities financial report; or
ii. if that impact is not known or reasonably estimable, a statement to that effect
The disclosures as described above must be made even if the impact on the entity is not
expected to be material. However, there is no need to mention a standard or interpretation if it
is clearly not applicable to the entity.
MaterialityMateriality
In accordance with Accounting Standard AASB 1031 Materiality, accounting policies need only
be identified in the summary of accounting policies where they are considered ‘material’.
Accounting policies will be considered material if their omission, misstatement or non-disclosure
has the potential, individually or collectively, to:
a) Influence the economic decisions of users taken on the basis of the financial report; and
b) Affect the discharge of accountability by the management or governing body of the
entity.
Additional StatementAdditional Statement
In the basis of preparation section the following statement must be included only when relevant.
‘Judgments made by management in the application of AAS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed throughout the notes in the financial statements.’
Going ConcernGoing Concern
Should a letter of comfort be received from DHS the Health Service should include in note 1 a
section titled ‘Going Concern’ which should detail that the statements have been prepared on a
going concern basis and relevant details from the letter of comfort.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
6363
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Comparative AmountsComparative Amounts
When the presentation or classification of items in the financial report is amended,
comparative amounts shall be reclassified unless the reclassification is impracticable.
When comparative amounts are reclassified, an entity shall disclose:
(a) the nature of the reclassification;
(b) the amount of each item or class of items that is reclassified; and
(c) the reason for the reclassification.
When it is impracticable to reclassify comparative amounts, disclose:
(d) the reason for not reclassifying the amounts; and
(e) the nature of the adjustments that would have been made if the amounts had been
reclassified.)
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entityN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
6464
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009Note 2: Revenue
HSA HSA Non HSA
Non HSA
Total Total HSA HSA Non HSA
Non HSA
Total Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Revenue from Operating Activities
Government Grants
- Department of Human Services 358,956 339,682 - - 358,956 339,682 358,956 339,682 - - 358,956 339,682
- Dental Health Services Victoria - - - - - - - - - - - -
- State Government - Other - Equipment and Infrastructure Maintenance - - - - - - - - - - - -
- Other - - - - - - - - - - - -
- Commonwealth Government
- Residential Aged Care Subsidy 2,384 2,291 - - 2,384 2,291 3,282 3,114 - - 3,282 3,114
- Other 13,668 12,063 - - 13,668 12,063 13,668 12,179 - 13,668 12,179
Total Government Grants 375,008 354,036 - - 375,008 354,036 375,906 354,975 - - 375,906 354,975
Indirect Contributions by Department of Human Services
- Insurance 5,813 4,968 - - 5,813 4,968 5,813 4,968 - - 5,813 4,968 - Long Service Leave 3,759 6,316 - - 3,759 6,316 3,759 6,316 - - 3,759 6,316
Total Indirect Contributions by Department of Human Services 9,572 11,284 - - 9,572 11,284 9,572 11,284 - - 9,572 11,284
P atient and Resident Fees
- P atient and Resident Fees (refer note 2b) 15,150 14,600 - - 15,150 14,600 15,150 14,600 - - 15,150 14,600
- Residential Aged Care (refer note 2b) 818 912 - - 818 912 1,308 1,321 - - 1,308 1,321
Total Patient & Resident Fees 15,968 15,512 - - 15,968 15,512 16,458 15,921 - - 16,458 15,921
Business Units & Specific P urpose Funds
- P rivate P ractice and Other P atient Activities Fees - - 7,831 7,589 7,831 7,589 - - 7,831 7,589 7,831 7,589 - Laboratory Medicine - - 10,097 9,497 10,097 9,497 - - 10,097 9,497 10,097 9,497 - Diagnostic Imaging 144 - 1,976 1,000 2,120 1,000 144 - 1,976 1,000 2,120 1,000 - P harmacy Services 306 - 189 226 495 226 306 - 189 226 495 226 - Catering - - - 306 - 306 - - - 306 - 306 - Laundry - - 4,721 500 4,721 500 - - 4,721 500 4,721 500 - Cafeteria - - - - - - - - - - - - - Car P ark - - 5,140 4,000 5,140 4,000 - - 5,140 4,000 5,140 4,000 - P roperty Income 18 550 550 18 550 18 550
- Research 56 2,795 1,377 2,795 1,433 - 56 2,795 1,377 2,795 1,433
- Other (include any unit or fund not stated above) 6,955 3,000 6,955 3,000 6,955 3,000 6,955 3,000
Total Business Units & Specific Purpose Funds 450 56 39,722 28,045 40,154 28,101 450 56 39,722 28,045 40,172 28,101
Donations & Bequests 28 34 2,231 5,498 2,259 5,532 28 34 2,231 5,498 2,259 5,532 Recoupment from P rivate P ractice for Use of Hospital Facilities 18,841 14,703 - - 18,841 14,703 18,841 14,703 - - 18,841 14,703
Other Revenue from Operating Activities 12,981 14,469 - - 12,981 14,469 12,987 14,496 - - 12,987 14,496
Sub-Total Revenue from Operating Activities 432,848 410,094 41,953 33,543 474,783 443,637 434,242 411,469 41,953 33,543 476,195 445,012
Parent Consolidated
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.presented in their financial statements.
6565
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 2: Revenue (Continued)
HSA HSA Non HSA
Non HSA
Total Total HSA HSA Non HSA
Non HSA
Total Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Revenue from Non-Operating Activities
Interest & Dividends 152 9 - - 152 9 208 9 - 208 9
Other Revenue from Non-Operating Activities - - - - - - - - - - - -
Sub-Total Revenue from Non-Operating Activities 152 9 - - 152 9 208 9 - - 208 9
Revenue from Capital Purpose Income
State Government Capital Grants
- Targeted Capital Works and Equipment 16,822 498 - - 16,822 498 16,822 498 - - 16,822 498
- Other 1,970 6,153 - - 1,970 6,153 1,970 6,153 - - 1,970 6,153
Commonwealth Government Capital Grants - - 10,000 - 10,000 - - - 10,000 - 10,000 - Residential Accommodation P ayments (refer note 2b) - - - - - - 55 41 - - 55 41
Assets Received Free of Charge (refer note 2d) - - 5 3 5 3 - - 5 3 5 3
Net Gain/(Loss) on Disposal of Non-Financial Assets (refer note 2c) - - 7 70 7 70 - - 7 70 7 70 Net Gain/(Loss) on Disposal of Financial Assets - - 2 9 2 9 - - 2 9 2 9
Capital Interest - - 81 - 81 - - - 81 - 81 -
Capital Dividends - - - - - - - - - - - -
Donations & Bequests - - 3,957 - 3,957 - 3 - 3,957 - 3,960 -
Other Capital P urpose Income - - 46 - 46 - - - 46 - 46 -
Sub-Total Revenue from Capital Purpose Income 18,792 6,651 14,098 82 32,890 6,733 18,850 6,692 14,098 82 32,948 6,774
Specific Income (refer note 2e) - - 3,000 10 3,000 10 - - 3,000 10 3,000 10
Share of Net Result of Associates & J oint Ventures Accounted for using the Equity Model (refer note 12) 6 4 - - 6 4 6 4 - - 6 4
Available-for-Sale Revaluation Reserve gain recognised (refer note 20a) - - 6 5 6 5 - - 8 8 8 8
Total Revenue (refer to note 2a) 451,798 416,758 59,057 33,640 510,837 450,398 453,306 418,174 59,059 33,643 512,365 451,817
Parent Consolidated
Indirect contributions by Department of Human Services: Department of Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.presented in their financial statements.
6666
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 2a: Analysis of Revenue by Source(based on the consolidated view of note 2)
Other Total
2009 2009 2009 2009 2009 2009 2009 2009 2009 2009
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Revenue from Services Supported by Health Services Agreement
Government Grants 331,575 4,122 100 80 36,307 25 1,675 2,022 - 375,906
Indirect contributions by Department of Human Services 9,572 - - - - - - - - 9,572
P atient & Resident Fees (refer note 2b) 11,648 2,521 - - 649 1,308 332 - - 16,458
Donations & Bequests (non capital) 18 - 5 - - 3 - 2 - 28
Recoupment from P rivate P ractice for Use of Hospital Facilities 18,841 - - - - - - - - 18,841
Business Units & Specific P urpose Funds 445 - - - 3 - 2 - - 450
Other Revenue from Operating Activities 11,529 171 - - 1,227 - 37 23 - 12,987
Interest & Dividends 208 - - - - - - - - 208
Capital P urpose Income (refer note 2) 18,792 58 - - - - - - - 18,850
Specific Income (refer note 2e) - - - - - - - - - -
Share of Net Result of Associates & J oint Ventures Accounted for using the Equity Model (refer note 12)
6 - - - - - - - - 6
Sub-Total Revenue from Services Supported by Health Services Agreement 402,634 6,872 105 80 38,186 1,336 2,046 2,047 - 453,306
Revenue from Services Supported by Hospital and Community Initiatives*
Donations & Bequests (non capital) - - - - - - - - 2,231 2,231
Business Units & Specific P urpose Funds - - - - - - - - 39,722 39,722
Other - - - - - - - - 8 8
Capital P urpose Income (refer note 2) - - - - - - - - 14,098 14,098
Specific Income (refer note 2e) - - - - - - - - 3,000 3,000
Sub-Total Revenue from Services Supported by Hospital and Community Initiatives - - - - - - - - 59,059 59,059
Total Revenue 402,634 6,872 105 80 38,186 1,336 2,046 2,047 59,059 512,365
Indirect contributions by Department of Human Services:
* The intent is to classify "Hospital and Community Initiatives" revenue into the "Other" program column.
Residential Aged Care revenue should be reported under HSA.
Department of Human Services makes certain payments on behalf of the Health Service (List). These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.
Primary Health
Aged CareAmbulatory
Mental Health
Admitted Patients Outpatients EDS
RAC incl. Mental Health
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presentedN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.in their financial statements.
6767
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 2a: Analysis of Revenue by Source(based on the consolidated view of note 2)
Other Total
2008 2008 2008 2008 2008 2008 2008 2008 2008 2008
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue from Services Supported by Health Services Agreement
Government Grants 341,777 3,114 25 10 9,861 150 - 38 - 354,975
Indirect contributions by Department of Human Services 11,284 - - - - - - - - 11,284
P atient & Resident Fees (refer note 2b) 11,991 1,825 - - 437 1,321 347 - - 15,921
Donations & Bequests (non capital) 34 - - - - - - - - 34
Recoupment from P rivate P ractice for Use of Hospital Facilities 14,678 - - - - - - 25 - 14,703
Business Units & Specific P urpose Funds 56 - - - - - - - - 56
Other Revenue from Operating Activities 11,945 51 - - 2,500 - - 14,496
Interest & Dividends 9 - - - - - - - - 9
Capital P urpose Income (refer note 2) 6,651 41 - - - - - - - 6,692
Specific Income (refer note 2e) - - - - - - - - - - Share of Net Result of Associates & J oint Ventures Accounted for using the Equity Model (refer note 12)
4 - - - - - - - - 4
Sub-Total Revenue from Services Supported by Health Services Agreement 398,429 5,031 25 10 12,798 1,471 347 63 - 418,174
Revenue from Services Supported by Hospital and Community Initiatives*
Donations & Bequests (non capital) - - - - - - - - 5,498 5,498
Business Units & Specific P urpose Funds - - - - - - - - 28,045 28,045
Other - - - - - - - - 8 8
Capital P urpose Income (refer note 2) - - - - - - - - 82 82
Specific Income (refer note 2e) - - - - - - - - 10 10
Sub-Total Revenue from Services Supported by Hospital and Community Initiatives - - - - - - - - 33,643 33,643
Total Revenue 398,429 5,031 25 10 12,798 1,471 347 63 33,643 451,817
Indirect contributions by Department of Human Services:
* The intent is to classify "Hospital and Community Initiatives" revenue into the "Other" program column.
Residential Aged Care revenue should be reported under HSA.
Department of Human Services makes certain payments on behalf of the Health Service (List). These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.
RAC incl. Mental Health
Primary Health
Mental Health
Aged CareOutpatients EDS Ambulatory
Admitted Patients
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presentedN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.in their financial statements.
6868
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Note 2: Services Supported By Health Services Agreement and Services Supported By Hospital And Community Initiatives
This enables distinction to be drawn in relation to flows of funds between those relating to
activities undertaken at the behest of government and those undertaken as a result of hospital
and local community initiatives.
Refer to page 24 for guidance on classification of HSA and non-HSA transactions.
Although in some cases the distinction between the two sectors may not be immediately
apparent, health service managers should ensure that those items that are reported under each
sector are based on definitions contained in the Finance and Accounting Manual/AIMS
guidelines. Evidence will need to be available for audit purposes to substantiate the basis for
classifying items in a particular way. It is also necessary when arriving at the above
classification of revenue that full costs associated with Services Supported by Hospitals and
Community Initiatives are brought to account. For example salary overheads, asset utilisation
and administration.
Health services need to continue complying with the current reporting format to
ensure the Department can complete the AHCA Acquittal and avoid financial
penalties under the Agreement.
The main category groups are:
Admitted Patient Services (Admitted Patients) Admitted Patient Services (Admitted Patients) comprises all recurrent health
revenue on admitted patient services, where services are delivered in: Public hospitals Free standing day hospital facilities Alcohol and drug treatment units Hospitals specialising in dental services, hearing and ophthalmic aids
This category also includes recurrent health revenue on admitted patient services where service delivery is contracted to private hospitals or treatment facilities, as well as recurrent funds for scope patient transport, training, research and telemedicine where it relates to admitted patient services.
This category excludes revenue/expenditure on designated mental health services.
The following cost centres from the Common Chart of Account Codes (CCAO) should be allocated here: A0000 – Acute wards – multi day A3000 – Acute wards – same day A4000 – Clinical units A8000 – Operational theatre suites A8500 – Acute inpatients M2002–2100 – Dental health (inpatients)
Outpatient Services (Outpatients) Outpatient Services (Outpatients) comprises all recurrent health revenue on public
hospital type outpatient services, where services are delivered in: Public hospital outpatient clinics Free standing day hospital facilities Rehabilitation facilities Alcohol and drug treatment units
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
6969
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Outpatient clinics specialising in ophthalmic aids or palliative care
This category includes recurrent health revenue for scope patient transport, training, research and telemedicine where it relates to outpatient services.
This category excludes revenue on emergency department and community-based services, as well as designated mental health services.
The following cost centre from the CCOA should be allocated here: C0000 – Non-admitted patient services
Emergency Department Services (EDS) Emergency Department Services (EDS) comprises all recurrent health revenue on
emergency department services that are available free of charge to public patients.
This category includes recurrent health expenditure/revenue for scope patient transport, training, research and telemedicine where it relates to emergency department services.
The following cost centre from the CCOA should be allocated here: B0000 - Emergency
Off Campus, Ambulatory Services (Ambulatory) Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health
revenue on public hospital type services including palliative care facilities and
rehabilitation facilities, as well as services provided under the following agreements: Services that are provided or received by hospitals (or area health services) but are
delivered/received outside a hospital campus Services which have moved from a hospital to a community setting since June 1998 Services which fall within the agreed scope of inclusions under the new system, which
have never been delivered within hospitals i.e. in rural/remote regions
This category includes recurrent health revenue for scope patient transport, training, research and telemedicine where it relates to off-campus, ambulatory services.
This category excludes recurrent health revenue on designated mental health services.
The following cost centres from the CCOA should be allocated here: D0000 – Other acute health funded services F0000 – Sub acute services
Mental Health Services (Mental Health) Mental Health Services (Mental Health) comprises all recurrent health revenue on
specialised mental health services (child and adolescent, general and adult, community
and forensic) managed or funded by the state or territory health administrations, and
includes: Admitted patient services (including forensic mental health) Outpatient services Emergency department services (where it is possible to separate emergency
department mental health services) Community-based services Residential and ambulatory services
This category may align with recurrent health revenue reported under the National Survey of Mental Health Services.
The following cost centre from the CCOA should be allocated here: H0000 – Mental health other
Residential Aged Care including Mental Health (RAC Mental Health),Residential Aged Care including Mental Health (RAC Mental Health), referred to in
the past as psychogeriatric residential services, comprises those Commonwealth-licensed
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
7070
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
residential aged care services in receipt of supplementary funding from DHS under the
mental health program. It excludes all other residential services funded under the mental
health program, such as mental health-funded community care units (CCUs) and secure
extended care units (SECUs).
The following cost centres from the CCOA should be allocated here: H8700 – Mental health residential care J0000 – Aged care residential low care J2000 – Aged care residential high care
Aged CareAged Care comprises revenue for Home and Community Care (HACC) programs, Allied Health, Aged Care Assessment and support services.
The following cost centres from the CCOA should be allocated here: J5000 – Home & Community Care (HACC) J7000 – Aged care other
Primary Health Primary Health comprises revenue for Community Health Services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy.
The following cost centre from the CCOA should be allocated here: L0000 – Primary health
Other Services Excluded from AHCAOther Services Excluded from AHCA (Other) (Other) comprises revenue for services not
separately classified above, including: Public Health Services including Laboratory testing, Blood Borne Viruses/ Sexually
Transmitted Infections clinical services, Koori Health liaison officers, immunisation and screening services.
Drugs Services including drug withdrawal, counselling and the needle and syringe program.
Dental Health Services including general and specialist dental care, school dental services and clinical education.
Disability Services including aids and equipment and flexible support packages to people with a disability.
Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services.
Health and Community Initiatives.
The following cost centres from the CCOA should be allocated here: M0000 – Drug prevention services M1000 – Disability services M1500 – Public health M2202-2300 – Dental health (community) M2302-2400 – Dental health (other) M4000 – Other programs M5000 – Department funded research M8500 – Other programs
The costs accounted for in the following cost centres must be allocated appropriately to the above-mentioned programs
N0000 – Pharmacy N2000 – Allied health services N8500 – Clinical services P0000 – Clinical support R0000 – Infrastructure services R1000 – Corporate services Y0000 – Diagnostic laboratory services Y1000 – Medical imaging services
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
7171
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Internal and Restricted Specific Purposes RevenueInternal and Restricted Specific Purposes Revenue Internally Managed Specific Purpose Funds
Internally managed specific purpose funds are funds established, managed and controlled by
the Board of Management. The Board has control over every aspect of these funds including the
specific purposes for which these funds are established. Examples of internally managed specific
funds include fund-raising activities, commercial ventures (eg. shops, linen services, café, etc),
departmental fund and specific projects.
Restricted Specific Purpose Funds
These funds are established for a particular or specific purpose (that is, a restriction or
condition) through some form of legal instrument such as a trust or legal undertaking to comply
with the condition or purpose for which the fund is established. The common types would be
donations provided to purchase specified equipment and research grants provided for a
particular field of interest.
A separate board or a separate committee normally manages the fund such as a foundation
managed by a separate board. Alternatively, this could be managed by a management auxiliary
to the health service’s Board.
The health service’s Board has no effective control on the restricted purpose SPF other than to
comply with or to implement the purpose for which the fund is set up.
Business UnitsBusiness UnitsThe only Business Units are Pathology Services (Diagnostic Laboratory) and Radiology Services
(Medical Imaging) nothing else is to be classified as Business Units. These business units MUST
be reported under the HSA section of the revenue and expenses notes.
DonationsDonationsAll donations are recognised as income when received. Where health services receive general
donations (i.e. the donor has not specified conditions with respect to disbursement), these
amounts shall be recorded as income under services supported by Health Services Agreement.
For example, donations collected from the ’Accident and Emergency’ area should be recorded
under other income against the acute health program. If conditions have been specified they
should be recorded as revenue under services supported by Hospital and Community Initiatives.
Where donations are received for the purpose of acquiring non-current assets such as plant and
equipment they should be reported under capital purpose income in the Operating Statement.
Commonwealth Government GrantsCommonwealth Government Grants
Commonwealth Government – Residential Aged Care Subsidy: includes residential care subsidy (CCOA 51501-51599), residential aged care accommodation supplements (CCOA 51601-51699) and other supplements (CCOA 51801-51899).Commonwealth Government – Other: includes any others grants from the Commonwealth apart from residential aged care.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
7272
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 2b: Patient and Resident Fees ^
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Patient and Resident Fees RaisedRecurrent:Acute – Inpatients 11,811 12,174 11,648 11,991 – Outpatients 2,358 1,642 2,521 1,825 – Other - 7 - 7 Residential Aged Care – Generic 709 796 1,199 1,205 – Mental Health - - - - – Residential Accommodation Payments(* ) 109 116 109 116 Mental Health 649 437 649 437 Other 332 340 332 340 Total Recurrent 15,968 15,512 16,458 15,921
Capital Purpose:Residential Accommodation Payments(* ) - - 55 41 Total Capital - - 55 41
(* ) This includes accommodation charges, interest earned on accommodation bonds and retention amount.
Patient and Resident Fees exclude recoupment from private practice, PBS co-payments or sale of pharmacy goods. These must be reported separately.
Calculation of Patient and Resident Fees Raised
Patient and resident fees raised is calculated by adding unbilled fees for patients not discharged at year end to fees billed to date less fees accrued in the previous year. Care should be taken to ensure that fees are identified against the correct program. For example, prosthesis revenue should be included in the Acute inpatient revenue. This ensures the disclosure of patient and resident fees raised complies with this note.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
7373
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Proceeds from Disposals of Non-Current Assets*Plant and Equipment 5 - 5 - Medical Equipment 6 31 6 31 Motor Vehicles 13 - 13 -
Buildings - 277 - 277 Total Proceeds from Disposal of Non-Current Assets 24 308 24 308
Less: Written Down Value of Non-Current Assets Sold*Plant and Equipment 2 - 2 - Medical Equipment 6 31 6 31 Motor Vehicles 9 - 9 - Buildings - 207 - 207 Total Written Down Value of Non-Current Assets Sold 17 238 17 238
Net gains/ (losses) on Disposal of Non-Current Assets 7 70 7 70
* List by asset category
Note 2c: Net Gain/ (Loss) on Disposal of Non-Financial Assets
(This note is not applicable to assets received from wholly- owned public sector entities)
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
During the reporting period, the fair value of assets received free of charge, was as follows:
Plant and Equipment - - - - Other (List) 5 3 5 3
TOTAL 5 3 5 3
(State source of assets received.)
Note 2d: Assets Received Free of Charge or For Nominal Consideration
Commentary - Assets Received Free of Charge
The revenues and assets recognised as a result of such transactions shall be measured at the fair value of resources received.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
7474
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 2e: Specific Income
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
(Describe the amount and nature of each Specific Income item)
Specific Income
Reversal of Write- down on Inventories - - - - Revaluation Increment on Non Current Assets (List by category of assets) - 10 - 10 Extinguishment of Liabilities - - - - Other (List) 3,000 - 3,000 -
TOTAL 3,000 10 3,000 10
Commentary – Specific Income
When an item of revenue from ordinary activities is of such a size, nature or incidence that its
disclosure is relevant in explaining the financial performance of the entity for the reporting
period, its nature and amount must be disclosed separately in the notes in the financial report
(refer to AASB 101 (86)).
Some of the circumstances which may give rise to the separate disclosure of the nature and amount of revenues in accordance with the above paragraph include: (a) the write-down of inventories or non-current assets and, where applicable, the reversal of
such write-downs;
(b) litigation settlements;
(c) reversals of provisions;
(d) restructuring of operations;
(e) disposals of items of property, plant and equipment;
(f) disposals of investments;
(g) changes in accounting policies, other than those changes made to comply with a Standard
or an Australian Interpretation that requires initial adjustments to be recognised as a
direct credit to equity or a direct debit to equity.
Please note that DHS LSL contribution should not be reported under Specific Income.
This should be included in Note 2a under Indirect Contributions from DHS.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
7575
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 3: Expenses
HSA HSA Non HSA Non HSA Total Total HSA HSA Non HSA Non HSA Total Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Employee Benefits
Salaries & Wages 283,864 274,109 19,808 13,163 303,672 287,272 283,864 274,109 21,023 14,282 304,887 288,391 WorkCover P remium 3,674 3,448 243 451 3,917 3,899 3,674 3,448 278 485 3,952 3,933
Departure P ackages 1,067 1,635 179 34 1,246 1,669 1,067 1,635 179 34 1,246 1,669 Long Service Leave 8,093 9,352 212 504 8,305 9,856 8,093 9,352 242 498 8,335 9,850
Superannuation 28,388 26,626 831 845 29,219 27,471 28,387 26,626 924 943 29,311 27,569
Total Employee Benefits 325,086 315,170 21,273 14,997 346,359 330,167 325,085 315,170 22,646 16,242 347,731 331,412
Non Salary Labour Costs
Fees for Visiting Medical Officers* 1,129 950 - - 1,129 950 1,129 950 - - 1,129 950
Agency Costs - Nursing 4,419 4,551 - 53 4,419 4,604 4,419 4,551 - 53 4,419 4,604
Agency Costs - Other 1,663 963 185 113 1,848 1,076 1,663 963 186 114 1,849 1,077
Total Non Salary Labour Costs 7,211 6,464 185 166 7,396 6,630 7,211 6,464 186 167 7,397 6,631
Supplies & ConsumablesDrug Supplies 21,779 17,417 (66) 4 21,713 17,421 21,721 17,417 - 10 21,721 17,427 S100 Drugs 7,054 8,477 - - 7,054 8,477 7,054 8,477 - - 7,054 8,477 Medical, Surgical Supplies and P rosthesis 36,277 35,754 1,451 122 37,728 35,876 36,277 35,754 1,477 140 37,754 35,894 P athology Supplies 3,425 2,547 584 106 4,009 2,653 3,483 2,547 526 106 4,009 2,653 Food Supplies 3,259 3,047 42 38 3,301 3,085 3,259 3,047 101 128 3,360 3,175 Total Supplies & Consumables 71,794 67,242 2,011 270 73,805 67,512 71,794 67,242 2,104 384 73,898 67,626
Other Expenses from Continuing OperationsDomestic Services & Supplies 3,288 3,015 463 547 3,751 3,562 3,288 3,015 503 584 3,791 3,599 Fuel, Light, P ower and Water 5,241 4,570 601 592 5,842 5,162 5,241 4,570 638 639 5,879 5,209 Insurance costs funded by DHS 5,813 4,968 - - 5,813 4,968 5,813 4,968 - - 5,813 4,968 Motor Vehicle Expenses 423 444 119 79 542 523 423 444 119 79 542 523
Repairs & Maintenance 5,546 6,263 401 468 5,947 6,731 5,546 6,263 448 511 5,994 6,774
Maintenance Contracts 4,419 3,576 286 157 4,705 3,733 4,419 3,576 286 157 4,705 3,733
P atient Transport 941 837 - - 941 837 941 837 - - 941 837
Bad & Doubtful Debts 1,186 162 14 - 1,200 162 1,186 162 14 - 1,200 162
Lease Expenses 2,713 3,025 2,674 1,507 5,387 4,532 2,713 3,025 2,674 1,507 5,387 4,532
Other Administrative Expenses 7,656 7,286 3,816 5,307 11,472 12,593 7,656 7,286 3,915 5,434 11,571 12,720
Other 432 753 110 153 542 906 432 753 110 153 542 906
Audit Fees
- VAGO - Audit of Financial Statements 151 123 - - 151 123 151 123 - - 151 123
- Other 44 138 - - 44 138 44 138 - - 44 138
Ex Gratia P ayments - - 16 19 16 19 - - 16 19 16 19 Total Other Expenses from Continuing Operations 37,853 35,160 8,500 8,829 46,353 43,989 37,853 35,160 8,723 9,083 46,576 44,243
PARENT CONSOLIDATED
* Visiting Medical Officers (VMOs) employed by an agency and paid through payroll should be included under Employee Benefits.
VMOs not employed by an agency or paid outside of payroll need to be reported under Non Salary Labour Costs.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presentedN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.in their financial statements.
7676
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 3: Expenses (Continued)
HSA HSA Non HSA Non HSA Total Total HSA HSA Non HSA Non HSA Total Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Expenditure using Capital Purpose IncomeEmployee Benefits
- Salaries & Wages - - 486 - 486 - - - 486 - 486 - - WorkCover P remium - - 6 - 6 - - - 6 - 6 - - Superannuation - - 24 - 24 - - - 24 - 24 - - Long Service Leave - - 54 - 54 - - - 54 - 54 - Total Employee Benefits - - 570 - 570 - - - 570 - 570 - Non Salary Labour Costs
- Agency Costs - Other - - 5 - 5 - - - 5 - 5 - Total Non Salary Labour Costs - - 5 - 5 - - - 5 - 5 - Other Expenses
- Domestic Services & Supplies - - 10 - 10 - - - 10 - 10 - - Motor Vehicle Expenses - - 13 - 13 - - - 13 - 13 - - Administrative Expenses - - 2,172 - 2,172 - - - 2,172 - 2,172 - - Other - - 5,595 - 5,595 - - - 5,595 - 5,595 - Total Other Expenses - - 7,790 - 7,790 - - - 7,790 - 7,790 - Total Expenditure using Capital Purpose Income - - 8,365 - 8,365 - - - 8,365 - 8,365 -
Impairment of Non-Financial Assets 10 8 - - 10 8 10 8 - - 10 8
Impairment of Financial Assets
- Financial Assets at Fair Value through P rofit and Loss - - - - - - - - - - - -
- Held-to-Maturity Investments - - - - - - - - - - - -
- Loans and Receivables - - - - - - - - - - - -
- Avaliable-for-Sale Financial Assets - - - - - - - - - - - -
Total Impairment of Financial Assets - - - - - - - - - - - -
Depreciation & Amortisation 24,990 15,992 6,522 2,295 31,512 18,287 24,990 15,992 6,617 2,373 31,607 18,365
Specific Expense - 4 1,006 - 1,006 4 - 4 1,006 - 1,006 4
Finance Costs 90 56 1 - 91 56 90 56 1 - 91 56
Assets P rovided Free-of Charge - - - - - - - - - - - -
Total 25,090 16,060 7,529 2,295 32,619 18,355 25,090 16,060 7,624 2,373 32,714 18,433
Total Expenses 467,034 440,096 47,863 26,557 514,897 466,653 467,033 440,096 49,648 28,249 516,681 468,345
PARENT CONSOLIDATED
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presentedN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.in their financial statements.
7777
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 3a: Analysis of Expenses by Source(based on the consolidated view)
Total
2009 2009 2009 2009 2009 2009 2009 2009 2009 2009
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Services Supported by Health Services AgreementEmployee Benefits 281,415 4,336 109 28 36,416 12 1,673 1,096 - 325,085 Non Salary Labour Costs 6,133 187 - - 875 - 15 1 - 7,211 Supplies & Consumables 68,124 337 50 4 1,702 - 819 758 - 71,794 Other Expenses from Continuing Operations 33,088 460 100 35 3,606 7 295 262 - 37,853 Impairment of Non-Financial Assets (refer note 3) 10 - - - - - - - - 10 Impairment of Financial Assets (refer note 3) - - - - - - - - - - Depreciation & Amortisation (refer note 4) 8,645 478 2,345 4,208 1,102 578 6,891 743 - 24,990 Specific Expenses (refer note 3c) - - - - - - - - - - Finance Costs (refer note 5) 75 2 - - 12 - 1 - - 90 Assets P rovided Free-of Charge - - - - - - - - - - Sub-Total Expenses from Services Supported by Health Services Agreement 397,490 5,800 2,604 4,275 43,713 597 9,694 2,860 - 467,033
Services Supported by Hospital and Community InitiativesEmployee Benefits - - - - - - - - 22,646 22,646 Non Salary Labour Costs - - - - - - - - 186 186 Supplies & Consumables - - - - - - - - 2,104 2,104 Other Expenses from Continuing Operations - - - - - - - - 8,723 8,723 Impairment of Non-Financial Assets (refer note 3) - - - - - - - - - - Impairment of Financial Assets (refer note 3) - - - - - - - - - - Depreciation & Amortisation (refer note 4) - - - - - - - - 6,617 6,617 Specific Expenses (refer note 3c) - - - - - - - - 1,006 1,006 Finance Costs (refer note 5) - - - - - - - - 1 1 Assets provided Free-of Charge - - - - - - - - - - Sub-Total Expense from Services Supported by Hospital and Community Initiatives - - - - - - - - 41,283 41,283
Services Supported by Capital SourcesEmployee Benefits - - - - - - - - 570 570 Non Salary Labour Costs - - - - - - - - 5 5 Other Expenses - - - - - - - - 7,790 7,790 Sub-Total Expenses from Services Supported by Capital Resources - - - - - - - - 8,365 8,365
Total Expenses * 397,490 5,800 2,604 4,275 43,713 597 9,694 2,860 49,648 516,681
(State basis of allocation across P rograms). * This item must reconcile to total expenses on Operating StatementResidential Aged Care revenue should be reported under HSA.
OtherMental Health
RAC incl. Mental Health
Aged Care
Primary Health
Admitted Patients Outpatients EDS Ambulatory
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presentedN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.in their financial statements.
7878
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 3a: Analysis of Expenses by Source(based on the consolidated view)
Total
2008 2008 2008 2008 2008 2008 2008 2008 2008 2008
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Services Supported by Health Services AgreementEmployee Benefits 267,844 5,848 1,581 961 29,877 1,322 5,996 1,741 - 315,170 Non Salary Labour Costs 4,760 198 - - 1,487 1 18 - - 6,464 Supplies & Consumables 59,782 1,718 89 5 3,778 768 950 152 - 67,242 Other Expenses from Continuing Operations 29,239 831 52 23 4,141 282 380 212 - 35,160 Impairment of Non-Financial Assets (refer note 3) 8 - - - - - - - - 8 Impairment of Financial Assets (refer note 3) - - - - - - - - - - Depreciation & Amortisation (refer note 4) 6,790 352 1,865 2,359 875 345 2,687 719 - 15,992 Specific Expenses (refer note 3c) - - - - 4 - - - - 4 Finance Costs (refer note 5) 45 2 - - 8 - 1 - - 56 Assets P rovided Free-of Charge - - - - - - - - - - Sub-Total Expenses from Services Supported by Health Services Agreement 368,468 8,949 3,587 3,348 40,170 2,718 10,032 2,824 - 440,096
Services Supported by Hospital and Community InitiativesEmployee Benefits - - - - - - - - 16,242 16,242 Non Salary Labour Costs - - - - - - - - 167 167 Supplies & Consumables - - - - - - - - 384 384 Other Expenses from Continuing Operations - - - - - - - - 9,083 9,083 Impairment of Non-Financial Assets (refer note 3) - - - - - - - - - - Impairment of Financial Assets (refer note 3) - - - - - - - - - - Depreciation & Amortisation (refer note 4) - - - - - - - - 2,373 2,373 Specific Expenses (refer note 3c) - - - - - - - - - - Finance Costs (refer note 5) - - - - - - - - - - Assets provided Free-of Charge - - - - - - - - - - Sub-Total Expense from Services Supported by Hospital and Community Initiatives - - - - - - - - 28,249 28,249
Services Supported by Capital SourcesEmployee Benefits - - - - - - - - - - Non Salary Labour Costs - - - - - - - - - - Other Expenses - - - - - - - - - - Sub-Total Expenses from Services Supported by Capital Resources - - - - - - - - - -
Total Expenses * 368,468 8,949 3,587 3,348 40,170 2,718 10,032 2,824 28,249 468,345
(State basis of allocation across P rograms). * This item must reconcile to total expenses on Operating StatementResidential Aged Care revenue should be reported under HSA.
Mental Health
RAC incl. Mental Health
Aged Care
Primary Health
Admitted Patients Outpatients EDS Ambulatory Other
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presentedN.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.in their financial statements.
7979
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Note 3: Services Supported By Health Services Agreement and Services Supported By Hospital And Community Initiatives
This enables distinction to be drawn in relation to flows of funds between those relating to
activities undertaken at the behest of government and those undertaken as a result of hospital
and local community initiatives.
Refer to page 24 for guidance on classification of HSA and non-HSA transactions.
Although in some cases the distinction between the two sectors may not be immediately
apparent, health service managers should ensure that those items that are reported under each
sector are based on definitions contained in the Finance and Accounting Manual/AIMS
guidelines. Evidence will need to be available for audit purposes to substantiate the basis for
classifying items in a particular way. It is also necessary when arriving at the above
classification of expenditure that full costs associated with Services Supported by Hospitals and
Community Initiatives are brought to account. For example salary overheads, asset utilisation
and administration.
Health services need to continue complying with the current reporting format to
ensure the Department can complete the AHCA Acquittal and avoid financial
penalties under the Agreement.
The main category groups are: Admitted Patient Services (Admitted Patients) Outpatient Services (Outpatients) Emergency Department Services (EDS) Off Campus, Ambulatory Services (Ambulatory) Mental Health Services (Mental Health) Residential Aged Care including Mental Health (RAC Mental Health), Aged Care Primary Other Services Excluded from AHCA (Other)
Descriptions of these category groups can be found on pages 70-73. References to revenue/income within the descriptions on pages 70-73 should be replaced with expenses where appropriate.
Internal and Restricted Specific Purposes RevenueInternal and Restricted Specific Purposes Revenue Internally Managed Specific Purpose Funds
Internally managed specific purpose funds are funds established, managed and controlled by
the Board of Management. The Board has control over every aspect of these funds including the
specific purposes for which these funds are established. Examples of internally managed specific
funds include fund-raising activities, commercial ventures (eg. shops, linen services, café, etc),
departmental fund and specific projects.
Restricted Specific Purpose Funds
These funds are established for a particular or specific purpose (that is, a restriction or
condition) through some forms of legal instrument such as a trust or legal undertaking to
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8080
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
comply with the condition or purpose for which the fund is established. The common types
would be donation provided to purchase a specified equipment and research grant provided for
particular field of interest.
A separate board or a separate committee normally manages the fund such as a foundation
managed by a separate board. Alternatively, this could be managed by a management auxiliary
to the health service’s Board.
The health service’s Board has no effective control on the restricted purpose SPF other than to
comply with or to implement the purpose for which the fund is set up.
Business UnitsBusiness UnitsThe only Business Units are Pathology Services (Diagnostic Laboratory) and Radiology Services
(Medical Imaging) nothing else is to be classified as Business Units. These business units MUST
be reported under the HSA section of the revenue and expenses notes
Repairs and MaintenanceRepairs and MaintenanceHealth services are reminded that repairs and maintenance refers to activity aimed at maintaining or returning an asset to its usual service potential. Such expenditure is recognised as an expense when it does not increase the level of economic benefits that will flow to the entity in future periods. For example, the repair cost incurred in rectifying a breakdown of an item of equipment, plant or vehicle is treated as an expense.
However, the replacement of major components of an asset may be capitalised as assets if such replacement satisfies the requirements of AASB 116, paragraphs 7 and 13.
The current recommended threshold for recognition of a non-current physical asset is $1,000 or more as per Finance and Accounting Manual – Public Hospitals, 1996 – Capitalisation Policy.
Items of Expenses and Losses Arising from Financial InstrumentsItems of Expenses and Losses Arising from Financial InstrumentsHealth services shall disclose items of expense, gains and losses either in this note or on the face of the operating statement. Please refer to AASB 7 disclosure requirements for items of expenses and losses arising from financial instruments.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8181
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Private Practice and Other Patient Activities 2,611 2,592 2,611 2,592 Laboratory Medicine 10,404 652 10,404 652 Diagnostic Imaging 1,469 731 1,469 731 Pharmacy Services 179 156 179 156 Catering - - - - Laundry 4,345 4,338 4,345 4,338 Cafeteria - - - - Car Park 807 767 807 767 Property Expenses - - 1,689 1,614 Specific Expenses (refer note 3c) - - - - Other (include any activity not stated above) - - - -
Other Activities
(List)
Fundraising and Community Support - - - - Research and Scholarship - - - - Other 12,153 15,026 12,154 15,026 TOTAL 31,968 24,262 33,658 25,876
Note 3b: Analysis of Expenses by Internal and Restricted Specific Purpose Funds for Services Supported by Hospital and Community Initiatives
Note 3c: Specific Expenses
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
(Describe the amount and nature of each Specific Expense item)
Specific ExpensesVoluntary Departure Packages - - - - Write- down on Inventories - - - - Revaluation Decrement on Non Current Assets (List by category of assets) - - - - Internal and Specific Purpose Funds - - - - Provision for Diminution in Investments (List by Class of assets) - - - - Cost Associated with Restructure (Disaggregation /Aggregation) 1,006 4 1,006 4 Litigation Settlements - - - - Other (List) - - - - TOTAL 1,006 4 1,006 4
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8282
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Specific ExpensesCommentary – Specific Expenses
When a expense from ordinary activities is of such a size, nature or incidence that its disclosure
is relevant in explaining the financial performance of the entity for the reporting period, its
nature and amount must be disclosed separately in the notes in the financial report (refer to
AASB 101 (86)).
Some of the circumstances which may give rise to the separate disclosure of the nature and amount of expenses in accordance with the above paragraph include: (a) the write-down of inventories or non-current assets and, where applicable, the reversal of
such write-downs;
(b) litigation settlements;
(c) reversals of provisions;
(d) restructuring of operations;
(e) disposals of items of property, plant and equipment;
(f) disposals of investments;
(g) changes in accounting policies, other than those changes made to comply with a
Standard or an Australian Interpretation that requires initial adjustments to be
recognised as a direct credit to equity or a direct debit to equity.
Voluntary Departure Packages/Targeted Separation PackagesVoluntary Departure Packages/Targeted Separation Packages
To be classified as an item under Specific Expenses, if their size and effect has a material impact on the results, as they effectively represent salary expenses which are an ordinary operating outgoing and result from a management decision to reduce staff rather than from some external effect. However, any payment made for long service leave which has already been provided for by way of an accrued liability should be treated as a reduction of the liability and not recorded as a specific expense.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8383
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 4: Depreciation and Amortisation
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
DepreciationBuildings 16,361 4,067 16,440 4,135 Plant & Equipment 7,475 6,190 7,491 6,200 Medical Equipment 6,733 7,083 6,733 7,083 Other (List) - - - - Total Depreciation 30,569 17,340 30,664 17,418
AmortisationLeased Asset - - - - (List by sub- class of assets) - - - - Intangible Assets - - - - Other (List) - - - - Medical Equipment 943 947 943 947 Total Amortisation 943 947 943 947
Total Depreciation & Amortisation 31,512 18,287 31,607 18,365
Commentary – Depreciation and Amortisation
DepreciationDepreciationDepreciation is generally provided on a straight-line basis at rates calculated to allocate the cost
or valuation of an asset, less any estimated residual value over its estimated ‘useful life’ (refer
AASB 116 Property, Plant and Equipment). It is calculated for all controlled/owned depreciable
physical assets.
The useful lives illustrated in the guidelines are for illustrative purposes only. Entities should
determine the useful lives of assets by consideration of the nature and characteristics of
specific assets.
AmortisationAmortisationAmortisation is generally provided on assets that are leased and is calculated in accordance with
AASB 117 Leases. If an entity has items such as patents, trademarks, computer software or
development expenses that are being amortised, these should be included under ‘Intangible
Assets’ (refer AASB 138 Intangible Assets).
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8484
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 5: Finance Costs
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Finance Charges on Finance Leases 91 56 91 56 Interest on Short Term Borrowings - - - - Interest on Long Term Borrowings - - - - Other (List) - - - - TOTAL 91 56 91 56
Commentary – Finance Costs
Finance costs must be disclosed separately on the Operating Statement as per AASB 101 Presentation of Financial Statements and should be reported according to the requirements in AASB 123 Borrowing Costs and FRD 105 Borrowing Costs.
AASB 123 requires the immediate expensing of finance costs but allows as an alternative treatment, the capitalisation of finance costs that are directly attributable to the acquisition, construction or production of a qualifying asset. However, FRD 105 limits the choice available under AASB 123 by requiring all finance costs to be expensed in the period incurred.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8585
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 6: Cash and Cash Equivalents
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Cash on Hand 82 33 82 33 Cash at Bank 17,533 14,718 19,321 15,148 Bank Overdrafts - - - - Deposits at Call 3,000 - 3,000 - Short Term Money Market - - - - Other (describe) - - - - TOTAL 20,615 14,751 22,403 15,181
Represented by:Cash for Health Service Operations (as per Cash Flow Statement) 20,599 14,739 19,453 14,603 Cash for Monies Held in Trust - Cash on Hand - - - - - Cash at Bank 16 12 658 578 - Deposits at Call - - 2,292 - - Short Term Money Market - - - - - Other (describe) - - - - TOTAL 20,615 14,751 22,403 15,181
For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short- term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.
Commentary – Cash and Cash Equivalents
Cash Assets include cash on hand and cash equivalents, where; Cash on hand means notes and coins held, and deposits held at call with a financial
institution; and Cash equivalents means highly liquid investments with short periods to maturity which
are readily convertible to cash on hand and are subject to an insignificant risk of changes in value.
The cash equivalents are restrictive as to maturity periods, and risk of changes in value. A short period to maturity generally means that an investment qualifies as a cash equivalent only when it has a maturity of three months or less from the date of acquisition.
Note: The total for line item ‘Cash for Health Service Operations’ must agree with line item
‘Cash at 30 June 2009’ in the Cash Flow Statement.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8686
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 7: ReceivablesParent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
CURRENTContractual
Inter Hospital Debtors 9,990 3,100 9,990 3,100 Trade Debtors 5,068 5,770 5,238 5,772 Patient Fees 8,152 5,350 8,152 5,325 Accrued Investment Income 46 15 46 15 Accrued Revenue - Other (List) 1,956 4,273 1,956 4,273 Less Allowance for Doubtful Debts
Inter Hospital Debtors - - - - Trade Debtors (1,169) (769) (1,169) (769) Patient Fees (646) (239) (646) (239)
25,212 18,508 25,382 18,485 Statutory
GST Receivable 1,608 969 1,608 969 Accrued Revenue - DHS - - - - Long Service Leave - DHS - - - - Less Allowance for Doubtful Debts - - - -
1,608 18,469 25,175 18,446 TOTAL CURRENT RECEIVABLES 25,005 18,469 25,175 18,446
NON CURRENTContractual
Inter Hospital Debtors - - - - Trade Debtors - - - - Patient Fees - - - - Accrued Investment Income - - - - Accrued Revenue - Other (List) - - - - Less Allowance for Doubtful Debts - - - -
- - - - Statutory
Accrued Revenue - DHS - - - - Long Service Leave - DHS 10,226 21,788 10,228 21,788 Less Allowance for Doubtful Debts - - - -
10,226 21,788 10,228 21,788 TOTAL NON-CURRENT RECEIVABLES 10,226 21,788 10,228 21,788 TOTAL RECEIVABLES 35,231 40,257 35,403 40,234
(a) Movement in the Allowance for doubtful debtsParent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Balance at beginning of year 1,008 971 1,008 971 Amounts written off during the year - - - - Amounts recovered during the year (393) (125) (393) (125) Increase/(decrease) in allowance recognised in profit or loss 1,200 162 1,200 162 Balance at end of year 1,815 1,008 1,815 1,008
(b) Ageing analysis of receivablesPlease refer to note 23(b) for the ageing analysis of receivables
(c) Nature and extent of risk arising from receivablesPlease refer to note 23(b) for the nature and extent of credit risk arising from receivables
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8787
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary- Receivables
Receivables are to be recorded at the amounts expected to be ultimately collected in cash
and, therefore, net of any provision for bad and doubtful debts. This is to include accrued
investment income.
Receivables (DHS-Long Service Leave): Entities are required to disclose the amount of
non-cash services delivered in respect of Long Service Leave movements as set out in
Hospital Circular 34/2008 issued on 19 November 2008.
Accounting For Long Service Leave. The application of this publication would result in the
recognition of the amount of non-cash services delivered as a receivable from DHS and non-
cash revenue from services provided.
Statutory Receivables: Assets that are not contractual (such as assets that arise as a result
of statutory requirements), are not financial assets. Therefore, although these assets are
similar to financial instruments, they are in fact not within the scope of AASB 7. However,
entities who wish to apply requirements from AASB 7 to such assets may do so at their own
discretion.
Financial Instruments Disclosures
Significance of financial instruments
AASB 7 requires an entity to disclose information that enables users of a financial report to
evaluate the significance of financial instruments for its financial position and performance.
Allowance account for credit losses
When financial assets are impaired by credit losses and the entity records the impairment in
a separate account rather than directly reducing the carrying amount of the asset, it shall
disclose a reconciliation of changes in that account during the period for each class of
financial assets.
Nature and extent of risks arising from financial instruments
An entity shall also disclose information that enables users of its financial report to evaluate
the nature and extent of risks arising from financial instruments to which the entity is
exposed at the reporting date.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
8888
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 8: Other Financial Assets
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
CURRENTTerm Deposit
Aust. Dollar Term Deposits - - - - - - - - - - Others (List) - - - - - - - - - -
Equities and Managed Investment Schemes - Australian Listed Equity Securities - - 54 - - - 54 - 54 - Managed Investment Schemes - - - - - - - - - -
Derivative Financial Asset - - - - - - - - - - Other (List) - - - - - - - - - - Total Current - - 54 - - - 54 - 54 -
NON CURRENTTerm Deposit
Aust. Dollar Term Deposits - - - - 10,000 - 10,000 - 10,000 - Other (List) - - - - - - - - - -
Equities and Managed Investment SchemesAustralian Listed Equity Securities - - - - - - - - - - Managed Investment Schemes - - 100 - - - 100 - 100 -
Debt SecuritiesDebentures - - - - - - - - - -
Other (List) - - - - - - - - - - Total Non Current - - 100 - 10,000 - 10,100 - 10,100 - TOTAL - - 154 - 10,000 - 10,154 - 10,154 -
Represented by:Health Service Investments - - - - 10,000 - 10,000 - 10,000 - Monies Held in Trust
Patient Monies - - 154 - - - 154 - 154 - Accommodation Bonds (Refundable Entrance Fees) - - - - - - - - - - Other (List) - - - - - - - - - - TOTAL - - 154 - 10,000 - 10,154 - 10,154 -
(b) Ageing analysis of other financial assetsPlease refer to note 23(b) for the ageing analysis of other financial assets
(c) Nature and extent of risk arising from other financial assetsPlease refer to note 23(b) for the nature and extent of credit risk arising from other financial assets
Consol'dOperating
FundSpecific
Purpose Fund Capital Fund Parent Entity
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.their financial statements.
8989
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Other Financial Assets
The entity can classify its other financial assets into the following categories: financial assets at
fair value through profit or loss, loans and receivables, held-to-maturity investments, and
available-for-sale financial assets. The classification depends on the purpose for which the
investments were acquired. Clarification of the classification of financial assets into the four
categories is prescribed by FRD114A ‘Financial Instruments – General Government Entities and
Public Non Financial Corporations’.
Should a category other than available for sale be utilised, the entity must disclose in the above
note the items and values for those categories used, and include appropriate disclosure in note
1(i) for example:
‘Investments held for trading purposes are classified as current assets and are stated at fair value,
with any resultant gain or loss recognised in the operating statement.’
Other Financial Assets can only be classified as “Investments Held to Maturity” if the entity has
approval from the Minister for Finance.
Impairment of financial assets
In accordance with accounting standards and as agreed with VAGO, financial assets should be
assessed for impairment on the basis of the instrument having either lost 20 per cent or more of
its cost at balance date or where its market value has been less than its cost for a period of 12 or
more months.
For impaired financial assets, an entity shall disclose:
(a) Interest income on impaired financial assets accrued in accordance with
paragraph AG93 of AASB 139; and
(b) The amount of any impairment loss for each class of financial assets.
Derecognition of financial assets: An entity may have transferred financial assets in such a
way that part or all of the financial assets do not qualify for derecognition (see paragraphs 15-37
of AASB 139). The entity shall disclose for each class of such financial assets:
(a) the nature of the assets;
(b) the nature of the risks and rewards of ownership to which the entity remains exposed;
(c) when the entity continues to recognise all of the asset, the carrying amounts of the asset
and of the associated liability; and
(d) when the entity continues to recognise the asset to the extent of its continuing
involvement, the total amount of the asset, the amount of the asset that the entity
continues to recognise and the carrying amount of the associated liability.
Instead of disclosing this information in a separate note, it may be more appropriate to include
such disclosures in the relevant asset notes.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9090
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 9: Inventories
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Pharmaceuticals* At cost 1,995 2,333 1,995 2,333 Catering Supplies* At cost 55 70 55 70 Housekeeping Supplies* At cost 47 56 47 56 Medical and Surgical Lines* At cost 2,586 1,715 2,586 1,715 At Net Relisable Value 143 129 143 129 Loss of Service Potential (8) (12) (8) (12) Total Medical and Surgical lines 2,721 1,832 2,721 1,832 Engineering Stores* At Cost - - - - Administration Stores* At Cost 44 13 44 13 Other (List)* At Cost - 85 - 85 At Net Relisable Value - - - - TOTAL INVENTORIES 4,862 4,389 4,862 4,389
* All categories are to be valued at Cost and/or Net Relisable Value. They also have to be assessed for Loss of Service Potential
Commentary - Inventories
Inventories are to be valued at the lower of cost and net realisable value. Inventories held for distribution are to be valued at the lower of cost and current replacement cost.
Under FRD 102 Inventories:
Land held for sale inventories must be measured on a ‘specific identification of cost’
basis.
High value, low volume inventory items must be measured on a ‘specific identification
of cost’ basis.
All other inventories must be measured using the ‘weighted average cost (WAC)
formula. An exception is allowed for the inventories of entities that prior to the date of
transition to A-IFRS were using inventory systems configured to measure such
inventories using the FIFO method. If material, inventory measured on this basis must
be separately disclosed in the entities financial report. It is expected that entities that
have applied this concession to use the FIFO method will change to the WAC method
when they upgrade/replace their inventory systems.
Paragraph 36.1 of AASB 102 Inventories, requires not-for-profit entities to disclose the following:
(a) the accounting policies adopted in measuring inventories held for distribution, including
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9191
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
the cost formula used;
(b) the total carrying amount of inventories held for distribution and the carrying amount in
classifications appropriate to the entity;
(c) the amount of inventories held for distribution recognised as an expense during the
period in accordance with paragraph Aus34.1;
(d) the amount of any write-down of inventories held for distribution recognised as an
expense in the period in accordance with paragraph Aus34.1;
(e) the amount of any reversal of any write-down that is recognised as a reduction in the
amount of inventories held for distribution recognised as expense in the period in
accordance with paragraph Aus34.1;
(f) the circumstances or events that led to the reversal of a write-down of inventories held
for distribution in accordance with paragraph Aus34.1;
(g) the carrying amount of inventories held for distribution pledged as security for liabilities;
and
(h) the basis on which any loss of service potential of inventories held for distribution is
assessed, or the bases when more than one basis is used.
Note 10: Non-Financial Assets Classified as Held For Sale
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Freehold Land 100 - 100 - Assets of Discontinued Operations (note 32) - - - - Other (list) - - - - TOTAL 100 - 100 -
Commentary – Non-current Assets Classified as Held For Sale
Entities should classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable.
Refer to paragraph 8 of AASB 5 Non-current Assets Held For Sale and Discontinued Operations for
a definition of a highly probable sale.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9292
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 11: Other Assets
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Prepayments 586 441 593 441 Other (list) - - - - CURRENT 586 441 593 441
Prepayments 35 - 35 - Other (List) - - - - NON CURRENT 35 - 35 - TOTAL 621 441 628 441
Commentary – Other Assets
To the extent that any items are financial instruments, an entity shall provide disclosures as
required by AASB 7. Further guidance on disclosure requirements of AASB 7 are provided in
the commentary box of relevant notes.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9393
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 12: Investments Accounted for Using the Equity Method
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Investment in Associates 10 8 10 8 8 2 8 2
TOTAL 18 10 18 10
2009 2008 2009 2008Name of Entity % % $'000 $'000AssociatesDXY Traders RAC Australia 80 80 13 10J ointly Controlled EntitiesSTR Laundry Services Australia 33.3 33.3 24 6
The following disclosure is also required in respect of each significant associate: - the investor’s ownership interest as at the associate’s reporting date and, if different, at the investor’s reporting date; - the proportion of voting power held in the associate where different from the proportion of ownership interest held; and - where an associate holds equity in the investor, the percentage of equity held by the associate.
An investor shall disclose the reasons why the presumption that it does not have significant influence is overcome ifit holds, directly, or indirectly through subsidiaries, less than 20% of the voting or potential voting power of the investee but concludes that it has significant influence.
The following disclosure is also required in respect of each significant joint venture: - the venturer’s ownership interest as at the associate’s reporting date and, if different, at the venturer’s reporting date;
- where jointly controlled entity holds equity in the venturer, the percentage of equity held by the venturer.
Interest in J ointly Controlled Entities
The fair value of interests in associates and jointly controlled entities for which there are published price quotations shall be disclosed.
- the proportion of voting power held in the jointly controlled entity where different from the proportion of ownership interest held; and
Principal Activity
Country of Incorporation
Ownership Interest Published Fair Value
Linen Services
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.their financial statements.
9494
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
2009 2008$'000 $'000
Summarised Financial Information of Associates: Current Assets 4 2 Non- Current Assets 8 8 Share of Total Assets 12 10
Current Liabilities 1 1 Non- Current Liabilities 1 1 Share of Total Liabilities 2 2 Net Assets 10 8 Share of Associates Net AssetsTotal Income 12 11 Net Result 5 4
Share of Associates’ Result After Income Tax 4 3 Dividends received from associates
Summarised Financial Information of J ointly Controlled Entities’ Balance Sheet: Current Assets 5 1 Non- Current Assets 4 2 Share of Total Assets 9 3
Current Liabilities - - Non- Current Liabilities 1 1 Share of Total Liabilities 1 1 Net Assets 8 2 Share of J ointly Controlled Entities Net AssetsTotal Income 15 14 Net Result 6 4
2 1 Dividends received from jointly controlled entities
Dividends Received from Associates and Joint Ventures
Contingent Liabilities and Capital Commitments
During the 2009 financial year, the ABC Health Service received dividends of $0 (2007/2008: $0) from its associates and dividends of $0 (2007/2008: $0) from its jointly controlled entities.
(Provide details of any contingent liabilities and capital commitments arising from associates and jointly controlled entities).
Note 12: Investments Accounted for Using the Equity Method (Continued)
Share of J ointly Controlled Entities’ Net Result After Income Tax
Commentary – Investments Accounted for Using the Equity Method
Accounting Standards AASB 128 Investments in Associates and AASB 131 Interests in Joint
Ventures do not explicitly state whether the disclosure of summarised financial information is to be
made individually or in aggregate. The entity should consider disclosing information on an
individual basis where this is material to the evaluation of operating performance and financial
position of the investor.
Refer to AASB 128 and AASB 131 for further details.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9595
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 13: Property, Plant & Equipment
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
LandLand at fair value 101,381 101,381 101,732 101,732
Less Impairment - - - Total Land 101,381 101,381 101,732 101,732
BuildingsBuildings Under Construction at cost - 1,200 - 1,200
Buildings at fair value 476,183 467,231 481,172 469,811 Less Acc'd Depreciation 16,375 - 16,584 129
Leasehold Improvements at cost - - - - Less Acc'd Depreciation - - - -
Total Buildings 459,808 468,431 464,588 470,882
Plant and EquipmentPlant and Equipment at fair value 82,490 73,914 82,735 74,076
Less Acc'd Depreciation 53,458 46,890 53,600 47,019 Total Plant and Equipment 29,032 27,024 29,135 27,057
Medical EquipmentMedical Equipment at fair value 93,191 85,804 93,191 85,804
Less Acc'd Depreciation 76,277 70,807 76,277 70,807 Total Medical Equipment 16,914 14,997 16,914 14,997
Cultural Assets Cultural Assets at fair value - - - -
Less Acc'd Depreciation - - - - Total Cultural Assets - - - -
Leased AssetsCost - - - - (List by each major sub-class of leased asset)
Less Acc'd Amortisation - - - -
Total Leased Assets - - - -
TOTAL 607,135 611,833 612,369 614,668
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9696
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 13: Property, Plant & Equipment (Continued)
Land Buildings Plant & Medical Cultural Leased Total
Equipment Equipment Assets Assets
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 J uly 2007 53,016 151,720 16,527 17,672 - - 238,935
Additions 1,310 1,262 16,704 5,413 - - 24,689
Assets transferred as capital contributions - 281,736 - - - - 281,736
Disposals - (207) (1) (31) - - (239)
C lassified as held for sale - - 8 - - - 8
I mpairment losses (recognised)/reversed in net result - - - (8) - - (8)
Net additions through restructuring - - - - - - -
Revaluation increments/(decrements) 47,406 40,506 - - - - 87,912
Net Transfers between classes - - 19 (19) - - -
Depreciation and Amortisation (note 4) - (4,135) (6,200) (8,030) - - (18,365)
Balance at 1 J uly 2008 101,732 470,882 27,057 14,997 - - 614,668
Additions - 1,302 4,601 9,608 - - 15,511
Assets transferred as capital contributions - 6,312 7,505 - - - 13,817
Disposals - - (12) (6) - - (18)
C lassified as held for sale - - 8 - - - 8
I mpairment losses (recognised)/reversed in net result - - - (10) - - (10)
Net additions through restructuring - - - - - - -
Revaluation increments/(decrements) - - - - - - -
Net Transfers between classes - 2,532 (2,533) 1 - - -
Depreciation and Amortisation (note 4) - (16,440) (7,491) (7,676) - - (31,607)
Balance at 30 J une 2009 101,732 464,588 29,135 16,914 - - 612,369
(Additions should be at cost and disposals should be at carrying amount).
Land and buildings carried at valuation
The effective date of the valuation is 30 J une 2009
Reconciliations of the carrying amounts of each class of asset for the consolidated emtity at the beginning and end of the previous and current financial year is set out below.
An independent valuation of the Health Service's property, plant and equipment was performed by the Valuer-General Victoria to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.their financial statements.
9797
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Property, Plant and Equipment
Land, Buildings and Cultural Assets: Subsequent to initial recognition as assets, land,
buildings and cultural assets are measured at fair value.
Crown Land: Generally accepted accounting principles suggest that Crown land should be
valued and included in the Balance Sheet of the entity occupying the land. Where control of land
is formally vested in entity, the value of the land should be recorded as a non-current asset.
However, where an entity pays an economic rental for use of the land, the land value should not
be reported as a non-current asset in the entities Balance Sheet. Where a peppercorn rental
applies or the land is not formally vested but controlled by the entity, the land should be
recognised as an asset. The date of last valuation, name and qualifications of valuer should be
included.
Plant and Equipment, Medical Equipment, Computers and Communications, Furniture
and Fittings and Motor Vehicles: These are initially recognised at cost and subsequently
measured at fair value less accumulated depreciation and impairment.
Valuation of Library Books & Technical Data (Material): Library books should be valued at
cost and a depreciation charge calculated on a straight-line basis.
Impairment: Property, plant and equipment measured on the fair value basis should also be
tested for impairment. Refer to AASB 136 Impairment of Assets for further details.
Expenditures recognised in assets under construction
AASB 116 requires disclosure of the amount of expenditure recognised in the carrying amount of
an item of property, plant and equipment in the course of its construction. Where assets under
construction are not identified as an asset class, separate disclosure is required.
Treatment of Accumulated Depreciation
AASB 116 Property, Plant and Equipment permits an entity to account for the accumulated
depreciation at the date of the revaluation either by:
increasing proportionately the accumulated depreciation balance with the increase in the
gross carrying amount of the asset so that the net carrying amount of the asset after
revaluation equals its revalued amount (gross approach); or·
eliminating the accumulated depreciation balance against the gross carrying amount of
the asset and increasing the net carrying amount to the revalued amount of the asset
(net approach).
To ensure consistency on a whole-of-state reporting basis, FRD 103D Non-current Physical
Assets requires, entities to account for the accumulated depreciation at the date of the
revaluation by applying the net approach.
Restrictive Nature of Assets
There may be restrictions on the use and/or disposal of cultural and heritage assets, Crown land
and infrastructure. Disclosure should be made to identify those assets that are subject to
restrictions and the nature of those encumbrances/restrictions.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9898
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 14: Intangible Assets
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Patents - - - - Less Acc'd Amortisation - - - -
- - - - Trade Marks 5,405 4,643 5,405 4,643
Less Acc'd Amortisation 3,605 2,661 3,605 2,661 1,800 1,982 1,800 1,982
Development Costs Capitalised - - - - Less Acc'd Amortisation - - - -
- - - - Other (List) - - - -
Less Acc'd Amortisation - - - - - - - -
Total Written Down Value 1,800 1,982 1,800 1,982
PatentsTrade Marks Development Other Total
Costs (List)$'000 $'000 $'000 $'000 $'000
Balance at 1 July 2007 - 2,706 - - 2,706 Additions - 223 - - 223 Additions from internal developments - - - - - Disposals - - - - - Classified as held for sale - - - - - Impairment losses recognised/(reversed) in net result - - - - - Amortisation (note 4) - (947) - - (947) Balance at 1 July 2008 - 1,982 - - 1,982 Additions - 761 - - 761 Disposals - - - - - Classified as held for sale - - - - - Impairment losses recognised/(reversed) in net result - - - - - Amortisation (note 4) - (943) - - (943) Balance at 30 June 2009 - 1,800 - - 1,800
Reconciliation of the carrying amounts of intangible assets at the beginning and end of the previous and current financial year:
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
9999
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Intangible Assets
FRD 109 Intangibles requires all intangible assets to be recognised on a cost basis. Refer to FRD 109 for further details on recognition of intangible assets.
Research Activities
AASB 138 Intangible Assets prohibits the recognition of research activities as an asset and requires them to be expensed as incurred.
Impairment of Intangible Assets
Entities should disclose information on impaired intangible assets in accordance with AASB 136 Impairment of Assets in addition to the information required by AASB 138 Intangible Assets.
Capitalisation Threshold
FRD 109 requires expenditure on intangibles to be capitalised only if the amount involved meets the capitalisation threshold that is material to the entity (refer AASB 1031 Materiality for guidance on materiality). In addition, an entity should consider the following in determining the capitalisation threshold:
the impact of the capitalisation threshold on the Operating Statement and Balance Sheet, taking into consideration the pattern of investment and that an intangible asset may have a relatively short useful life (e.g. useful life of software is usually only 3-5 years); and
the administrative burden of conducting annual impairment tests of intangible assets.
Additional disclosures for intangible assets acquired by way of government grant and
initially recognised at fair value
For intangible assets acquired by way of a government grant and initially recognised at fair value, a entity shall disclose:
(a) the fair value initially recognised for these assets;(b) their carrying amount; and(c) whether they are measured after recognition under the cost model or the revaluation
model.
Intangible assets measured after revaluation using the revaluation model
If intangible assets are accounted for at revalued amounts, an entity shall disclose the following:
(a) by class of intangible assets:
i. the effective date of the revaluation;ii. the carrying amount of revalued intangible assets; andiii. the carrying amount that would have been recognised had the revalued class of
intangible assets been measured after recognition using the cost model;
(b) the amount of the revaluation reserve that relates to intangible assets at the beginning and end of the period, indicating the changes during the period and any restrictions on the distribution of the balance to shareholders; and
(c) the methods and significant assumptions applied in estimating the assets’ fair values.
Notwithstanding (a)(iii) (above), in respect of not-for-profit entities, for each revalued class of intangible assets, the requirements to disclose the carrying amount that would have been recognised had the assets been carried under the cost model does not apply.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
100100
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 15: Investment Properties
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Balance at Beginning of Period - - - - Additions 5 - 5 - Acquisitions of Businesses - - - - Other Acquisitions - - - - Disposals and Property Held for Sale - - - - Net Gain/ (Loss) from Fair Value Adjustments - - - - (Net Foreign Currency Exchange Differences) - - - - Transfers - - - - Other Changes (List) - - - - Balance at End of Period 5 - 5 -
Commentary – Investment Properties
Entities should disclose the methods and significant assumptions applied in determining the fair
value of investment property, including a statement whether the determination of fair value was
supported by market evidence or was more heavily based on other factors (disclose these
factors) because of the nature of the property and lack of comparable market data.
Entities are required to disclose the extent to which the fair value of investment property is
based on a valuation by an independent valuer who holds a recognised and relevant professional
qualification and has recent experience in the location and category of the investment property
being valued. If there has been no such valuation, that fact shall be disclosed
Properties held by not-for-profit entities to meet service delivery objectives are not investment
properties and must be classified as property, plant and equipment. The reason for classifying a
property that would otherwise satisfy the definition of investment property as property, plant and
equipment must be documented and approved by the entities Responsible Body (FRD 107
Investment Properties).
After recognition, investment properties must be measured using the fair value model unless
prior written approval from the Minister for Finance has been obtained to use the cost model.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
101101
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 16: PayablesParent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
CURRENTContractualTrade Creditors 20,805 16,903 20,805 16,908 Accrued Interest 127 122 127 122 Accrued Expenses 7,600 10,482 7,600 10,482 Salary Packaging 9,639 9,713 9,639 9,713 Other (List) - - - -
38,171 37,220 38,171 37,225 StatutoryGST Payable 4,028 4,149 4,028 4,149 DHS - - - - Other (List) - - - -
4,028 4,149 4,028 4,149 TOTAL CURRENT 42,199 41,369 42,199 41,374
NON CURRENTContractualTrade Creditors 175 146 175 146 Accrued Interest - - - - Accrued Expenses - - - - Other (List) - - - -
175 146 175 146 StatutoryDHS - - - - Other (List) - - - -
- - - - TOTAL NON CURRENT 175 146 175 146
TOTAL 42,374 41,515 42,374 41,520
(a) Maturity analysis of payablesPlease refer to Note 23c for the ageing analysis of payables
(b) Nature and extent of risk arising from payablesPlease refer to note 23c for the nature and extent of risks arising from payables
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
102102
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Payables
Payables are to include payables for supplies and services, capital expenditure and interest
accrued.
The disclosure of payables should include the following:
Classification of the outstanding debts into ageing periods.
Public borrowing or financial accommodation transactions must be clearly indicated.
Secured liabilities and the nature of the security.
Financial Instrument Disclosures
Significance of financial instruments
AASB 7 requires an entity to disclose information that enables users of financial report to
evaluate the significance of financial instruments for its financial position and performance.
Nature and extent of risks arising from financial instruments
An entity shall also disclose information that enables users of its financial report to evaluate the
nature and extent of risks arising from financial instruments to which the entity is exposed at the
reporting date.
Financial Guarantee
An entity shall disclose the fair value of any financial guarantee that it provides to third parties,
should the fair value of the liability become greater than zero either as part of this note for
payables or in the note for other payables.
Statutory Payables: Liabilities that are not contractual (such as liabilities that arise as a result
of statutory requirements), are not financial liabilities. Therefore, these liabilities though may
seem to be financial instruments, in fact are not within the scope of AASB 7. However, entities
who wish to apply requirements from AASB 7 to such liabilities can do so at their own discretion.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
103103
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 17: Interest Bearing LiabilitiesParent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
CURRENTBank Overdraft 5 5 5 5 Australian Dollar Borrowings
– Finance Lease Liability (i) (refer Note 24) 2 2 2 2 – Other - - - - Total Australian Dollars Borrowings 2 2 2 2
Total Current 7 7 7 7
NON CURRENTAustralian Dollar Borrowings– Finance Lease Liability (refer Note 24) - - - - – Other - - - - Total Australian Dollars Borrowings - - - -
Total Non-Current - - - -
Total Interest Bearing liabilities 7 7 7 7
(Details of the terms and conditions of the interest bearing borrowings) $(The approved Bank Overdraft limit is)
Amount of finance costs recognised as expenses -
-
(a) Maturity analysis of interest bearing liabilitiesPlease refer to note 23(c) for the ageing analysis of interest bearing liabilities.
(b) Nature and extent of risk arising from interest bearing liabilities
(c) Defaults and breachesDuring the current and prior year, there were no defaults and breaches of any of the loans.
Amount of investment revenue earned on borrowed funds that has been deducted from the finance costs incurred
Please refer to note 23(c) for the nature and extent of risks arising from interest bearing liabilities.
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default
Finance costs of the Health Service incurred during the year are accounted for as follows:
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
104104
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Interest Bearing Liabilities
Interest bearing liabilities include short and long term Government Bonds, Medium Term
Notes and Finance Leases.
The State’s interest bearing liabilities are to represent funds raised from the following
sources:
Loans raised by the Commonwealth on behalf of the State.
Public domestic and overseas borrowing via the Treasury Corporation of Victoria; and
Private and public domestic borrowing.
(Note: all borrowings require prior approval from the Treasurer)
Refer to AASB 139 Financial Instruments: Recognition and Measurement for the recognition
and measurement criteria for financial instruments.
Overseas borrowings are to be translated at exchange rates prevailing at balance date unless
they are subject to forward exchange contracts where the contract rate is used or where
hedging strategies are in place.
Exchange gains or losses are to be included in the Operating Statement in the period in which
they arise.
Finance leases: the obligations under such leases are to be capitalised at the fair value of
the leased asset, or if lower, the present value of the minimum lease payments, each
determined at the inception of the lease. The capitalised values are to be amortised over the
period in which the entities expect to receive benefits from their use.
The disclosure of interest bearing liabilities should include the following:
Classification of the outstanding debts into ageing periods.
Public borrowing or financial accommodation transactions must be clearly indicated.
Secured liabilities and the nature of the security.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
105105
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 18: Employee Benefits and Related On-Costs Provisions
Parent Entity Parent Entity Consol'd Consol'd2009 2008 2009 2008$'000 $'000 $'000 $'000
Current ProvisionsEmployee Benefits
- Unconditional and expected to be settled within 12 months 33,772 30,372 33,820 30,402 - Unconditional and expected to be settled after 12 months 47,146 43,142 47,204 43,183
Employee Termination Benefits- Unconditional and expected to be settled within 12 months - - - - - Unconditional and expected to be settled after 12 months - - - -
Other (List) - - - - 80,918 73,514 81,024 73,585
Provisions related to employee benefit on- costs- Unconditional and expected to be settled within 12 months (nominal value)
5,427 4,879 5,429 4,881
- Unconditional and expected to be settled after 12 months (present value)
3,645 3,955 3,647 3,959
9,072 8,834 9,076 8,840 Total Current Provisions 89,990 82,348 90,100 82,425
Non-Current ProvisionsEmployee Benefits 8,883 8,799 8,969 8,867 Employee Termination Benefits 457 385 459 392 Provisions related to employee benefit on- costs - - - - Other (List) - - - - Total Non-Current Provisions 9,340 9,184 9,428 9,259
Current Employee BenefitsUnconditional LSL entitlement 45,547 42,076 45,560 42,093 Annual leave entitlements 26,661 24,146 26,719 24,206 Accrued Wages and Salaries 7,082 5,857 7,119 5,857 Sick Leave 1,368 1,248 1,366 1,242 Accrued Days Off 260 187 260 187 Other (List) - - - - Non-Current Employee BenefitsConditional long service leave entitlements (present value) 8,883 8,799 8,969 8,867 Other (List) - - - - Total Employee Benefits 89,801 82,313 89,993 82,452 On-CostsCurrent On- Costs 9,072 8,834 9,076 8,840 Non- Current On- Costs 457 385 459 392 Total On-Costs 9,529 9,219 9,535 9,232 Total Employee Benefits and Related On-Costs 99,330 91,532 99,528 91,684
Movement in Long Service Leave:Balance at start of year 50,875 44,559 50,960 44,643 Provision made during the year - Revaluations 1,818 2,144 1,825 2,145 - Expense recognising employee service 6,541 7,712 6,565 7,718 Settlement made during the year (4,804) (3,540) (4,821) (3,546) Balance at end of year 54,430 50,875 54,529 50,960
Commentary – Employee Benefits and Related On-Costs
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
106106
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Provisions
A provision is a present legal, equitable or constructive obligation to make a sacrifice of future
economic benefits to other entities as a result of past transactions and the amount or timing of
the sacrifice of future benefits is uncertain.
A brief description of the nature of the present obligation and any significant uncertainties
about each class of provision must be disclosed (including relevant major assumptions about
future events). Amounts of any expected recovery related to each class of provision must also
be disclosed.
AASB 137 Provisions, Contingent Liabilities and Contingent Assets defines provisions as
‘liabilities of uncertain timing or amount’. AASB 137 indicates provisions can be distinguished
from other liabilities such as trade payables and accruals because there is uncertainty about
the timing or amount of the future expenditure required in settlement. Although it is
sometimes necessary to estimate the amount or timing of accruals, the uncertainty is
generally much less than for provisions.
Provisions exist when:
the entity has a present legal or constructive obligation to make a sacrifice of future
economic benefits to other entities as a result of past transactions or past events;
the amount or timing of the sacrifice of future economic benefits is uncertain;
it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and
a reliable estimate can be made of the amount of the obligation.
A present value approach is required for the measurement of provisions where the effect of
the time value of money is material. A best estimate of the consideration required to settle
the present obligation as at the reporting date may be required.
For each class of provision, the following must be disclosed:
a brief description of the nature of the obligation and the expected timing of any resulting
outflows of economic benefits;
an indication of the uncertainties about the amount or timing of those outflows. Where
necessary to provide adequate information, an entity shall disclose the major assumptions
made concerning future events, as addressed in paragraph 48 of AASB 137; and
the amount of any expected reimbursement, stating the amount of any asset that has
been recognised for that expected reimbursement.
Refer to AASB 137 for further guidance.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
107107
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary - Employee Benefits and Related On-Costs Provisions (cont.)
AASB 119 Employee Benefits sets out the reporting requirements for employee benefits.
Employee benefits include long service leave, accrued wages and salaries, annual leave,
accrued days off, post employment benefits and termination benefits. On-costs such as
WorkCover and superannuation provision should be included in the calculation of leave
provisions.
Provision is made in the accounts for obligations in respect of long service leave and annual
leave entitlements not taken at balance date. The amounts are to be accrued annually at
remuneration rates expected to apply when the obligation is settled, that is the expected future
increase in remuneration rate and comply with the requirements of AASB 119.
FRD 17A ‘Long Service Leave Wage Inflation and Discount Rates’ permits agencies to use other
wage inflation rates in the calculation of LSL where agencies can clearly demonstrate that for
industry-specific reasons, the use of the alternative rates will result in more relevant and reliable
LSL calculations. It is currently envisaged that the Department will not provide the industry-
specific rates to entities and payroll bureaus as it has done in previous years, and that the DTF
defined rate will be applied.
All staff, including S.97 staff, are deemed to be employees of the entity whether employed
directly or indirectly. As such all employee benefits are to be accrued by the entity.
Long Service LeaveLong Service Leave
LSL representing ten plus years of continuous service is:
a) disclosed as a current liability even where the agency does not expect to settle the
liability within 12 months as it will not have the unconditional right to defer the
settlement of the entitlement should an employee take leave within 12 months;
b) measured at:
i. nominal value under AASB 119 where a component of this current liability is
expected to fall due within 12 months after the end of the period; and
ii. present value under AASB 119 where the entity does not expect to settle a
component of this current liability within 12 months.
LSL representing less than ten years of continuous service is:
a) disclosed in accordance with AASB 101 as a non-current liability; and
b) measured at present value under AASB 119 as the entity does not expect to settle this
non-current liability within 12 months.
Accrued Wages and Salaries, Annual Leave and Accrued Days OffAccrued Wages and Salaries, Annual Leave and Accrued Days Off
Provisions for employee entitlements are reported as a liability in the Balance Sheet with details
disclosed in a note. The liability is calculated on what is owed at 30 June.
Sick LeaveSick Leave
A current liability should only be recognised if it is probable that sick leave expected to be taken
in future reporting periods will be greater than entitlements which are expected to accrue in
those periods.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
108108
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 19: Other Liabilities
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
CURRENTMonies Held in Trust* - Patient Monies Held in Trust* 16 12 16 12 - Accommodation Bonds (Refundable Entrance Fees)* - - 2,770 1,320 - Other Monies Held in Trust* - - 164 - Other 421 8,868 21 8,868 Total Current 437 8,880 2,971 10,200
NON CURRENTMonies Held in Trust* - Patient Monies Held in Trust* - - - - - Accommodation Bonds (Refundable Entrance Fees)* - - - - - Other Monies Held in Trust* 154 - 154 - Other 347 - 347 - Total Non-Current 501 - 501 -
Total Other Liabilities 938 8,880 3,472 10,200
(List major items within each category)
* Total Monies Held in Trust
Represented by the following assets:
Cash Assets (refer to Note 6) 16 12 2,950 578 Other Financial Assets (refer to Note 8) 154 - 154 - Land and Buildings - - - 754 TOTAL 170 12 3,104 1,332
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
109109
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 20: EquityParent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008
$'000 $'000 $'000 $'000(a) ReservesProperty, Plant & Equipment Revaluation Reserve 1
Balance at the beginning of the reporting period 124,752 36,840 125,726 37,804 Revaluation I ncrement/(Decrements) - Land - 47,406 - 47,416 - Buildings - 40,506 - 40,506 - Plant and Equipment - - - - Impairment Losses - Land - - - - - Buildings - - - - - Plant and Equipment - - - - Reversal of Impairment Losses - Land - - - - - Buildings - - - - - Plant and Equipment - - - - Share of increments in reserve attributable to associates - - - - Share of increments in reserve attributable to jointly controlled operations - - - - Balance at the end of the reporting period* 124,752 124,752 125,726 125,726
* Represented by: - Land 71,810 71,810 71,944 71,944 - Buildings 52,942 52,942 53,782 53,782 - Plant and Equipment - - - -
124,752 124,752 125,726 125,726 Financial Assets Available-for-Sale Revaluation Reserve 2
Balance at the beginning of the reporting period 22 19 27 22
Adjustment on adoption of new accounting policy - - - -
Valuation gain/(loss) recognised 8 8 10 13 Cumulative (gain)/ loss transferred to Operating Statement on sale of financial assets (6) (5) (8) (8) Cumulative (gain)/ loss transferred to Operating Statement on impairment of financial assets - - - - Share of increments in reserve attributable to associates - - - - Share of increments in reserve attributable to jointly controlled operations - - - - Balance at end of the reporting period 24 22 29 27
General Purpose Reserve
Balance at the beginning of the reporting period - - - - Transfer to and from General Reserve (List transfer by nature) - - - - Share of increments in reserve attributable to associates - - - - Share of increments in reserve attributable to jointly controlled operations - - - - Balance at the end of the reporting period - - - -
(2) The financial assets available-for-sale revaluation reserve arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold, that portion of the reserve which relates to the financial asset, and is effectively realised, is recognised in the profit and loss. Where a revalued financial asset is impaired that portion of the reserve which relates to that financial asset is recognised in profit and loss.
(1) The property, plant & equipment asset revaluation reserve arises on the revaluation of property, plant & equipment.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
110110
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 20: Equity (Continued)
Parent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Restricted Specific Purpose ReserveBalance at the beginning of the reporting period 3,971 2,702 4,094 2,825 Transfer to and from Restricted Specific Purpose Reserve (List transfer by nature) (2,038) 1,269 (2,038) 1,269
Share of increments in reserve attributable to associates - - - - Share of increments in reserve attributable to jointly controlled operations - - - -
Balance at the end of the reporting period 1,933 3,971 2,056 4,094
Total Reserves 126,709 128,745 127,811 129,847
(b) Contributed CapitalBalance at the beginning of the reporting period 386,048 104,302 387,544 105,798 Capital contribution received from Victorian Government 10,867 281,746 13,847 281,736 Capital repayments - - - 10 Balance at the end of the reporting period 396,915 386,048 401,391 387,544
(c) Accumulated Surpluses/ (Deficits)Balance at the beginning of the reporting period 16,936 30,919 16,103 33,908 Net Result for the Year (4,060) (16,255) (4,316) (16,528) Transfers to and from Reserve (I dentify the transfers from each of the above reserves) 2,038 2,272 2,038 (1,277) Adjustments Resulting from Change in Accounting Policy (646) - (666) - Balance at the end of the reporting period 14,268 16,936 13,159 16,103
(d) Total Equity at end of financial year 537,892 531,729 542,361 533,494
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
111111
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Equity
Contributed CapitalContributed CapitalTransfers between wholly-owned public sector entities and the Victorian State Government or
another entity that is wholly-owned and controlled by the Government must be classified and
recognised as contributed capital when they satisfy the definition of ’contribution by owners’.
Contributed capital can also be recognised after two or more entities have amalgamated to form
a new entity.
FRD 119 ‘Contributions by Owners’ provides guidance and clarification on the application of
paragraph 7(c) of Interpretation 1038 ‘Contributions by Owners to Wholly-Owned Public Sector
Entities’.
Restricted Purpose FundsRestricted Purpose FundsGenerally restricted specific purpose reserves are funds where agencies have possession or title
to the funds but have no discretion to amend or vary the restriction and/or condition underlying
the funds. The common examples are funds established with external control (separate board),
restricted purpose donations, trust fund or bequest with conditions and auxiliary funds
(separately incorporated and managed). The guidelines on the establishment and identification
of restricted purpose funds are contained in the Guidelines for the Identification and
Establishment of Specific Purpose Funds. These guidelines are located at DHS website:
http://www.health.vic.gov.au/spfunds/spfund.pdf
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
112112
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Net Result for the Year (4,060) (16,255) (4,316) (16,528)
Depreciation & Amortisation 31,512 18,287 31,607 18,365 Impairment of Non Current Assets 10 8 10 8 Provision for Doubtful Debts 414 162 414 162 Change in Inventories (473) (635) (473) (635) Resources/Assets Provided Free of Charge - - - - Resources/Assets Received Free of Charge (5) (3) (5) (3) Net (Gain)/Loss from Sale of Plant and Equipment (15) (84) (17) (87) Net (Gain)/Loss from Sale of Investments - - - - Change in Operating Assets & Liabilities (Increase)/Decrease in Receivables 956 (6,082) 2,204 (6,595) (Increase)/Decrease in Other Assets (180) (52) (180) (52) (Increase)/Decrease in Prepayments (245) 183 (445) 184 Increase/(Decrease) in Payables 859 4,102 854 2,381 Increase/(Decrease) in Employee Benefits 7,798 8,762 7,844 11,015 Increase/(Decrease) in Other Liabilities (307) 2,075 (439) 2,007 Others (List as required) - - - - NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES 36,264 10,468 37,058 10,222
Note 21: Reconciliation of Net Result for the Year to Net Cash Inflow/ (Outflow) from Operating Activities
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
113113
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary – Non-Cash Financing and Investing Activities
Information must be disclosed about non-cash transactions and other events which affect assets
and liabilities that have been recognised in the financial statements, where the transactions and
other events:
involve external parties; and
relate to the financing or investing activities of the health service.
Other examples of transactions or events that would require disclosure under paragraph 44 of
AASB 107 Cash Flow Statements include the following:
assumptions of liabilities;
acquisitions of assets by entering into a finance lease;
acquisitions of assets by assumption of directly related liabilities, such as purchase of a
building by incurring a mortgage to the seller, and
conversion of debt to equity
Note 22: Non-Cash Financing and Investing Activities
Parent Entity
Parent Entity
Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Assumption of liabilities 8,187 - 8,187 - Acquisition of Plant and equipment by means of finance leases 7,656 281,746 7,656 281,746 Other (List) - - - - Total 15,843 281,746 15,843 281,746
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
114114
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 23: Financial Instruments
(a) Financial Risk Management Objectives and Policies
The ABC Health Service's principal financial instruments comprise of: - Cash Assets - Term Deposits - Receivables (excluding statutory receivables) - Investment in Equities and Managed Investment Schemes - Payables (excluding statutory payables) - Finance Lease payables - Accommodation Bonds
Categorisation of financial instruments
Carrying Amount
Carrying Amount
2009 2008$'000 $'000
Financial AssetsCash and cash equivalents 22,403 15,181 Designiated at fair value through profit or loss - - Held- for- trading at fair value through profit or loss - - Loans and Receivables 35,382 18,485 Available for sale 154 -
Total Financial Assets (i) 57,939 33,666
Financial LiabilitiesDesigniated at fair value through profit or loss - - Held- for- trading at fair value through profit or loss - - At amortised cost 41,825 47,578
Total Financial Liabilities (ii) 41,825 47,578
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.
(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable)
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payables)
The main purpose in holding financial instruments is to prudentially manage ABC Health Service financial risks within the government policy parameters.
Details of each categories in accordance with AASB 139, shall be disclosed either on the face of the balance sheet or in the notes.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
115115
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 23: Financial Instruments (Continued)
Net holding gain/ (loss) on financial instruments by category
Carrying Amount
Carrying Amount
2009 2008$'000 $'000
Financial Assets
Cash and cash equivalents (i) - -
Designiated at fair value through profit or loss (iii) - -
Held- for- trading at fair value through profit or loss (iii) - -
Loans and Receivables (i) 208 9
Available for sale (i) - -
Total Financial Assets 208 9
Financial Liabilities
Designiated at fair value through profit or loss (iii) - -
Held- for- trading at fair value through profit or loss (iii) - -
At amortised cost (ii) 91 56
Total Financial Liabilities 91 56
(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result;
(ii) For financial liabilities measure at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; and
(iii) For financial assets and liabilities that are held-for-trading or designated at fair value through profit or loss, the net gain or loss is calculated by taking the movement in the fair value of the financial asset or liability.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
116116
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 23: Financial Instruments (continued)
(b) Credit Risk
Ageing analysis of financial asset as at 30 June
Less than 1 Month
1-3 Months
3 months - 1 Year
1-5 Years
2009 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial Assets
Cash and Cash Equivalents 22,403 22,403 - - - - - Receivables
- Trade debtors 15,228 14,995 - 233 - - 79
- Other receivables 10,154 10,154 - - - - -
Other financial assets
- Term Deposit 10,000 10,000 - - - - -
- Shares in Other Entities 154 142 12 - - - 30
Total Financial Assets 57,939 57,694 12 233 - - 109
2008
Financial Assets
Cash and Cash Equivalents 15,181 15,181 - - - - - Receivables
- Trade debtors 8,872 8,679 - 193 - - 65
- Other receivables 9,613 9,613 - - - - -
Other financial assets
- Term Deposit - - - - - - -
- Shares in Other Entities - - - - - - -
Total Financial Assets 33,666 33,473 - 193 - - 65
Ageing analysis of financial assets must exclude the types of statutory financial assets (i.e GST input tax credit)
Consol'd Carrying Amount
(Provide details of any significant exposure to credit risk, including the amount that best represents the maximum credit risk exposure at the reporting date, a description of collateral held as security and other credit enhancements, information about the credit quality of financial assets that are neither past due nor impaired).
The ABC Health Service's exposure to credit risk and effective weighted average interest rate by ageing periods is set out in the following table. For interest rates applicable to each class of asset refer to individual notes to the financial statements.
Past Due But Not ImpairedNot Past Due and
Not Impaired
Impaired Financial
Assets
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
117117
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 23: Financial Instruments (continued)
(c) Liquidity Risk
Carrying Amount
Contractual Cash Flows
Less than 1 Month
1-3 Months
3 months - 1 Year
1-5 Years
2009 $'000 $'000 $'000 $'000 $'000 $'000
Financial Liabilities
Payables 38,346 38,346 321 5,267 32,583 175
I nterest Bearing Liabilities 7 7 - - - 7
Other Financial Liabilities
- Accommodation Bonds 2,770 2,770 - - 2,770 -
- Other 702 702 - 202 - 500
Total Financial Liabilities 41,825 41,825 321 5,469 35,353 682
2008
Financial Liabilities
Payables 37,371 37,371 567 3,665 32,993 146
I nterest Bearing Liabilities 7 7 - - - 7
Other Financial Liabilities
- Accommodation Bonds 1,320 1,320 - - 620 700
- Other 8,880 8,880 600 2,280 6,000 -
Total Financial Liabilities 47,578 47,578 1,167 5,945 39,613 853
Ageing analysis of financial liabilities must exclude the types of statutory financial liabilities (i.e GST payable)
Maturity Dates
(Provide details of maturity analysis for financial liabilities that shows the remaining contractual maturities and how to manage the liquidity risk inherent).
The following table discloses the contractual maturity analysis for ABC Health Service's financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.
Maturity analysis of financial liabilities as at 30 June
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
118118
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 23: Financial Instruments (continued)
(d) Market Risk
Currency Risk
Interest Rate Risk
Other Price Risk
(Describe the objectives, policies and processes used to manage the risk)
The ABC Health Service's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below.
The ABC Health Service is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.
Exposure to interest rate risk might arise primarily through the ABC Health Service's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, the health service mainly undertake financial liabilities with relatively even maturity profiles.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
119119
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
(d) Market Risk (cont)
Interest Rate Exposure of Financial Assets and Liabilities as at 30 JuneWeighted Carrying
Average Amount Fixed Variable Non-
Effective Interest Interest Interest
Interest Rate Rate Bearing
2009 Rate (% ) $'000 $'000 $'000Financial Assets
Cash and Cash Equivalents(i) 5.66 22,403 - 20,615 1,788
Receivables
- Trade debtors 1.80 15,228 102 - 15,126
- Other receivables 0 10,154 - - 10,154
Other financial assets
- Term Deposit 6.05 10,000 8,500 1,500 -
- Shares in Other Entities 0 154 - - 154
57,939 8,602 22,115 27,222 Financial Liabilities
Payables(i) 2.00 38,346 175 - 38,171
I nterest Bearing Liabilities 10.23 7 - 7 -
Other Financial Liabilities
- Accommodation Bonds 0 2,770 - - 2,770
- Other 0 702 - - 702
41,825 175 7 41,643
2008Financial Assets
Cash and Cash Equivalents(i) 5.42 15,181 - 14,751 430
Receivables - - - 18,485
- Trade debtors 1.80 8,872 82 - 8,790
- Other receivables 0 9,613 - - 9,613
Other financial assets
- Term Deposit 0 - - - -
- Shares in Other Entities 0 - - - -
33,666 82 14,751 37,318 Financial Liabilities
Payables(i) 2.00 37,371 146 - 37,225
I nterest Bearing Liabilities 9.33 7 - 7 -
Other Financial Liabilities
- Accommodation Bonds 0 1,320 - - 1,320
- Other 0 8,880 - - 8,880
47,578 146 7 47,425
(i) The carrying amount must exclude types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)
I nterest Rate Exposure
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
120120
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 23: Financial Instruments (continued)
(d) Market Risk (cont)
Sensitivity Disclosure Analysis
- A shift of +X% and - Y% in market interest rates (AUD) from year- end rates of 6%; - A parallel shift of +Z% and - Z% in inflation rate from year- end rates of 2%
Carrying
AmountProfit Equity Profit Equity Profit Equity Profit Equity
2009 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Financial Assets
Cash and Cash Equivalents(i) 22,403 (224) (224) 224 224 - - - -
Receivables
- Trade debtors 15,228 - - - - - - - -
- Other receivables 10,154 - - - - - - - -
Other financial assets
- Term Deposit 10,000 (100) (100) 100 100 - - - -
- Shares in Other Entities 154 - - - - - - - - Financial Liabilities
Payables 38,346 - - - - - - - -
I nterest Bearing Liabilities 7 - - - - - - - -
Other Financial Liabilities - - - - - - - - -
- Accommodation Bonds 2,770 - - - - - - - -
- Other 702 - - - - - - - -
(324) (324) 324 324 - - - -
2008Financial Assets
Cash and Cash Equivalents(i) 15,181 (152) (152) 152 152 - - - -
Receivables
- Trade debtors 8,872 - - - - - - - -
- Other receivables 9,613 - - - - - - - -
Other financial assets
- Term Deposit - - - - - - - - -
- Shares in Other Entities - - - - - - - - - Financial Liabilities
Payables 37,371 - - - - - - - -
I nterest Bearing Liabilities 7 - - - - - - - -
Other Financial Liabilities
- Accommodation Bonds 1,320 - - - - - - - -
- Other 8,880 - - - - - - - -
(152) (152) 152 152 - - - -
The carrying amount must exclude types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)
I nterest Rate Risk Other Price Risk
Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, the ABC Health Service believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)
The following table discloses the impact on net operating result and equity for each category of financial instrument held by ABC Health Service at year end as presented to key management personnel, if changes in the relevant risk occur.
(i) eg. Sensitivity of cash and cash equivalents to a +1% movement in interest rates: [$22,403k* 0.07]- [$22,403k* 0.06] = $224k. Similar for a - 1% movement in interest rate, impact = $(224k)
-Y% +X% -Z% +Z%
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
121121
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Commentary - Financial Instruments
Significant accounting policies
In accordance with paragraph 109 of AASB 101 Presentation of Financial Statements, an entity
discloses, in the summary of significant accounting policies, the measurement basis (or bases)
used in preparing the financial report and the other accounting policies that are relevant to an
understanding of the financial report.
The newly applicable AASB 7, requires comprehensive disclosure requirements for financial
instruments including, but not limited to, the following:
(a)the measurement basis (bases) and the criteria used to determine classification for
different types of financial instruments;
(b) the movement in fair value for financial instruments classified as fair value through profit
or loss;
(c) an entity’s objectives, policies and processes for managing capital; and
(d) the qualitative and quantitative disclosures for each type of risk (e.g.: credit risk, liquidity
risk, and market risk) that the entity is exposed to.
Nature and extent of risk disclosures
AASB 7 requires that an entity provide qualitative and quantitative disclosures for each type of
risk arising from financial instruments.
An entity shall disclose information that enables users of its financial report to evaluate the
nature and extent of risks arising from financial instruments to which the entity is exposed at the
reporting date.
Qualitative disclosure
For each type of risk arising from financial instruments, an entity shall disclose:
(a) the exposures to risk and how they arise;
(b) its objectives, policies and processes for managing the risk and the methods used to
measure the risk; and
(c) any changes in (a) or (b) from the previous reporting period.
Quantitative disclosure
For each type of risk arising from financial instruments, an entity shall disclose:
(a) summary quantitative data about its exposure to that risk at the reporting date. This
disclosure shall be based on the information provided internally to key management
personnel of the entity (as defined by AASB 124 Related Party Disclosures); and
(b) specific disclosures as required for each type of risk (see credit, liquidity and market
risks), to the extent not provided in (a), unless the risk is not material
Disclosures in this model only cover credit, liquidity and market risk. Entities should
consider whether there may be other type of risks that they may need to disclose,
specific to their own circumstances.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
122122
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Credit risk exposuresIn addition to the required quantitative disclosures above, an entity shall disclose:
(a) the amount that best represents its maximum exposure to credit risk at the reporting
date without taking account of any collateral held or other credit enhancements (e.g.
netting agreements that do not qualify for offset in accordance with AASB 132), either in
narrative or tabular format;
(b) in respect of the amount disclosed in (a), a description of collateral held as security and
other credit enhancements;
(c) information about the credit quality of financial assets that are neither past due nor
impaired; and
(d) the carrying amount of financial assets that would otherwise be past due or impaired
whose terms have been renegotiated.
Financial assets that are either past due or impaired
An entity shall disclose by class of financial asset:
(a) an analysis of the age of the financial assets that are past due as at the reporting date
but not impaired;
(b) the amount of any impairment loss
(c) an analysis of financial assets that are individually determined to be impaired as at the
reporting date, including the factors the entity considered in determining that they are
impaired; and
(d) for the amounts disclosed in (a) and (b), a description of collateral held by the entity as
security and other credit enhancements and, unless impracticable, an estimate of their
fair value.
Collateral and other credit enhancements obtained
When an entity obtains financial or non-financial assets during the period by taking possession of
collateral it holds as security or calling on other credit enhancements (e.g. guarantees), and such
assets meet the recognition criteria in other Australian Accounting Standards, an entity shall
disclose:
(a) the nature and carrying amount of the assets obtained; and
(b) when the assets are not readily convertible into cash, its policies for disposing of such
assets or for using them in its operations.
Consolidated Carrying Amount
The consolidated carrying amount is required to be sub-classified according to the following
three categories:
- Not Past Due and Not Impaired
- Past Due but Not Impaired
- Impaired Financial Assets
Liquidity risk exposuresAn entity shall disclose:
(a) a maturity analysis for financial liabilities that shows the remaining contractual maturities; and
(b) a description of how it manages the liquidity risk inherent in (a).
The amounts disclosed in the maturity analysis are the contractual undiscounted cash flows.
Market risk exposures
Market risk comprises of foreign currency risk, interest rate risk, and other price risk.
Unless an entity prepares a sensitivity analysis, such a value-at-risk (VaR), that reflects
interdependencies between risk variables (e.g. interest rates and exchange rates) and uses it to
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
123123
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
manage financial risks, an entity shall disclose:
(a) a sensitivity analysis for each type of market risk to which the entity is exposed at the
reporting date, showing how profit or loss and equity would have been affected by
changes in the relevant risk variable that were reasonably possible at that date;
(b) the methods and assumptions used in preparing the sensitivity analysis; and
(c) changes from the previous period in the methods and assumptions used, and the reasons
for such changes.
Carrying amount and fair value disclosure
If management considers that the carrying amount of financial assets and financial liabilities
recorded in the financial report does not approximate fair vales for each class of financial asset
or financial liability, an entity shall disclose the fair value of that class of assets and liabilities in a
way that permits it to be compared with the corresponding carrying amount in the balance
sheet. (AASB 139 provides guidance for determining fair value)
If changes in fair value have been estimated using a valuation technique, entities are required to
disclose the resulting total amount of changes in fair value that was recognised in net operating
result during the period.
Financial instruments at fair value through profit or loss
If the entity has designated a loan or receivable as fair value through profit or loss, it shall
disclose:
(a) the maximum exposure to credit risk of the loan or receivable at the reporting date;
(b) the amount by which any related credit derivatives or similar instruments mitigate that
maximum exposure to credit risk;
(c) the amount of change, during the period and cumulatively, in the fair value of the loan or
receivable that is attributable to changes in the credit risk of the financial asset
determined either:
o the amount of change in its fair value that is not attributable to changes in market
conditions that give rise to market risk; or
o using an alternative method the entity believes more faithfully represents the amount of
change in its fair value that is attributable to changes in the credit risk of the asset;
o Changes in market conditions that give rise to market risk include changes in an observed
(benchmark) interest rate, commodity price, foreign exchange rate or index of prices or
rates; and
(d) The amount of change in the fair value of any related credit derivatives or similar
instruments that has occurred during the period and cumulatively since the loan or
receivable was designated.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
124124
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 24: Commitments for Expenditure
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Capital Expenditure CommitmentsPayable:Land and Buildings 8,256 14,179 8,256 14,179 Plant and Equipment - - - - Other (List) - - - - Total Capital Commitments 8,256 14,179 8,256 14,179
Land and Buildings*Not later than one year 8,256 13,579 8,256 13,579 Later than 1 year and not later than 5 years - 600 - 600 Later than 5 years - - - - Total 8,256 14,179 8,256 14,179
Other Expenditure CommitmentsPayable:Computer Equipment 2,541 1,825 2,541 1,825 Total Other Commitments 2,541 1,825 2,541 1,825
Not later than one year 1,600 1,000 1,600 1,000 Later than 1 year and not later than 5 years 900 700 900 700 Later than 5 years 41 125 41 125 TOTAL 2,541 1,825 2,541 1,825
Lease CommitmentsCommitments in relation to leases contracted for at the reporting date:Operating Leases 4,997 3,063 4,997 3,063 Finance Leases 2 2 2 2 Total Lease Commitments 4,999 3,065 4,999 3,065
Operating Leases(Include a general description of operating lease arrangements) payable as follows:CancellableNot later than one year - - - - Later than 1 year and not later than 5 years - - - - Later than 5 years - - - - Sub Total - - - -
Non-cancellableNot later than one year 1,241 1,076 1,241 1,076 Later than 1 year and not later than 5 years 3,756 1,892 3,756 1,892 Later than 5 years - 95 - 95 Sub Total 4,997 3,063 4,997 3,063 TOTAL 4,997 3,063 4,997 3,063
Total Commitments for expenditure ( inclusive of GST) 15,796 19,069 15,796 19,069 less GST recoverable from the Australian Tax Office (1,205) (1,568) (1,205) (1,568) Total commitments for expenditure (exclusive of GST) 14,591 17,501 14,591 17,501
* Provide for each type of commitmentAll amounts shown in the commitments note are nominal amounts inclusive of GST.
(This Note should include commitments for operating & finance leases, capital and operating expenditure under contracts for the supply of works, services and materials insofar as they are not provided for in the Balance Sheet).
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
125125
ABC Health ServiceABC Health ServiceNotes to the Financial StatementsNotes to the Financial Statements
30 June 200930 June 2009
Note 24: Commitments for Expenditure (continued)
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Finance LeasesCommitments in relation to finance leases are payable as follows:Not later than one year 2 2 2 2 Later than 1 year and not later than 5 years - - - - Later than 5 years - - - - Minimum lease payments 2 2 2 2 Less future finance charges - - - - TOTAL 2 2 2 2
Representing Lease LiabilitiesCurrent (note 17) 2 2 2 2 Non- current (note 17) - - - - TOTAL 2 2 2 2
All amounts shown in the commitments note are nominal amounts inclusive of GST.
The weighted average interest rate implicit in leases is xx% (2008 - xx%)
Under the terms of a particular lease, the ABC Health Service has an option to acquire the leased asset for xx% of its agreed fair value on expiry of the lease.
Under the terms of a particular lease, the terms of renewal / escalation clauses are_________.
N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity N.B. Items that are not applicable or have zero values (rows and columns) should be deleted. Each entity should ensure that their accounting policies are presented in their financial statements.should ensure that their accounting policies are presented in their financial statements.
126126
Commentary – Commitments for ExpenditureAll amounts shown in the commitments note are nominal amounts inclusive of GST.
Commitments disclosed are to include those operating and capital commitments arising from
non-cancellable contractual or statutory obligations and any finance lease liabilities.
Finance LeasesFinance leases transfer to the entities, as lessees, substantially all the risks and rewards
incidental to the ownership of a leased asset. The obligations under such leases are to be
capitalised at the fair value of the leased asset, or if lower, the present value of the minimum
lease payments, each determined at the inception of the lease. The capitalised values are to be
amortised over the period in which the entities expect to receive benefits from their use.
Operating Leases
Operating leases, where the lessors substantially retain the risks and rewards of ownership, are
to be recognised as expenses on a straight-line basis over the lease term unless another
systematic basis is more representative of the time pattern of the user’s benefit. The cost of
leasehold improvements is to be capitalised and amortised over the remaining term of the lease
or estimated useful life of the improvements, whichever is the shorter.
For both Operating and Finance Leases a general description (at end of note) of the lessee's
leasing arrangements including, but not limited to the following:
the basis on which contingent rental payments are determined;
the existence and terms of renewal or purchase options and escalation clauses; and
restrictions imposed by lease arrangements, such as those concerning dividends,
additional debts and further leasing.
If it is an Operating Lease, the following expenses need to be disclosed if applicable:
Rental expense recognised in the year
Represented by:
Minimum lease payments
Contingent rentals
Rental expenses/revenues arising from sub-leases
If it is a Finance Lease, the following needs to be disclosed if applicable:
Contingent rentals recognised as expenses in the year
Future minimum lease payments expected to be received on non-cancellable sub leases.
Other Commitments
These can include:
Operating commitments, which are commitments under contracts for operating
expenditure (excluding operating lease liabilities) outstanding at reporting date but not
recognised as liabilities.
Outsourcing human resources at the reporting date but not recognised as liabilities.
Remuneration commitments, where there are long-term employment contracts with
employees under which the entity is committed to pay salaries and other remuneration
benefits and is obligated to pay out the residual of the contracted amount or some other
amount, other than accrued employee entitlements, in the event the employment of an
individual is terminated by either party.
Note 25: Contingent Assets and Contingent Liabilities
Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
Contingent AssetsQuantifiableGuarantees and Indemnities - - - - Legal Proceedings and Disputes 5 7 5 7 Other (List) - - - - Total Quantifiable Contingent Assets 5 7 5 7
Non-Quantifiable(Detail Each Non Quantifiable Asset)
Contingent LiabilitiesQuantifiableGuarantees and Indemnities 3 2 3 2 Legal Proceedings and Disputes - - - - Other - Land Acquisition - - - - Total Quantifiable Liabilities 3 2 3 2
Non-Quantifiable(Detail Each Non Quantifiable Liability)
Provide nature of quantifiable contingent liabilities or contingent assets listed above.
All amounts shown in the contingents note are nominal amounts inclusive of GST.
Details of estimates of maximum amounts of contingent assets or contingent liabilities are as follows:
Commentary - Contingent Assets and Contingent Liabilities Commentary - Contingent Assets and Contingent Liabilities
A contingency includes a possible asset/liability, the existence of which is likely to have a
material effect on the Balance Sheet, and will only be confirmed by the occurrence or non-
occurrence of one or more uncertain future events not wholly within the control of the entity.
Material contingent liabilities and assets are NOT recognised in the Balance Sheet. They are
recorded at the point at which the contingency is evident. Disclosures required in the financial
report for each class of contingent asset/liability include:
A brief description of the nature of the class of contingent liabilities or class of contingent
assets
An indication of the uncertainties relating to the amount or timing of any future sacrifice or
inflow of economic benefits
An estimate of the potential financial effect, or statement that it is not practicable to make
such an estimate
The existence and amount of any possible recovery
The extent to which material contingent assets and contingent liabilities are secured must also
be disclosed.
Financial Guarantee
Entities are encouraged to disclose the underlying nominal amounts of any loan, for which it
provided financial guarantees, in this note under contingent liabilities.
Note 26: Segment Reporting
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
REVENUEExternal Segment Revenue 5,300 4,055 387,366 373,582 - - - - 392,666 377,637 I ntersegment Revenue 157 131 182 165 - - - - (339) (296) - - Unallocated Revenues - - - - - - 119,485 74,167 119,485 74,167 Total Revenue 5,457 4,186 387,548 373,747 - - 119,485 74,167 (339) (296) 512,151 451,804 EXPENSESExternal Segment Expenses (5,323) (5,141) (390,074) (371,649) - - - - (395,397) (376,790) I ntersegment Expenses 110 97 127 86 - - - - (237) (183) - - Unallocated Expense - - - - - - (121,193) (91,499) - - (121,193) (91,499) Total Expenses (5,213) (5,044) (389,947) (371,563) - - (121,193) (91,499) (237) (183) (516,590) (468,289) Net Result from ordinary activities 244 (858) (2,399) 2,184 - - (1,708) (17,332) (576) (479) (4,439) (16,485)
I nterest Expense - - (91) (56) - - - - - - (91) (56) I nterest I ncome - - 152 - - - 56 9 - - 208 9 Share of Net Result of Associates & J oint Ventures using Equity Method - - 6 4 - - - - - - 6 4 Net Result for Year 244 (858) (2,332) 2,132 - - (1,652) (17,323) (576) (479) (4,316) (16,528)
OTHER INFORMATIONSegment Assets 2,949 2,953 458,218 456,630 - - - - - (61) 461,167 459,522 Unallocated Assets - - - - - - 226,575 217,383 - - 226,575 217,383 Total Assets 2,949 2,953 458,218 456,630 - - 226,575 217,383 - (61) 687,742 676,905
Segment Liabilities 366 312 56,139 55,099 - - - - - (61) 56,505 55,350 Unallocated Liabilities - - - - 88,876 88,061 88,876 88,061 Total Liabilities 366 312 56,139 55,099 - - 88,876 88,061 - (61) 145,381 143,411
I nvestments in associates and joint venture partnership - - 18 10 - - - - - - 18 10 Acquisition of property, plant and equipment and intangible assets 52 31 19,868 215,720 - - 9,408 90,674 - - 29,328 306,425 Depreciation & amortisation expense 48 107 18,164 13,447 - - 13,395 4,811 - - 31,607 18,365 Non cash expenses other than depreciation - - - - - - - - - - - - Impairment of inventories - - 10 8 - - - - - - 10 8
Other Eliminations Consol'dRAC Segment 2 Segment 3
Note 26: Segment Reporting (continued)
The major products/services from which the above segments derive revenue are:
Business Segments ServicesResidential Aged Care Services (RACS) Provider of residential aged care bedsSegment 2 Provider of Segment 3 Provider ofOthers (List)
Geographical Segment
Refer to AASB 114 for further details.
ABC Health Service operates predominantly in Big Town, Victoria. More than 90% of revenue, net surplus from ordinary activities and segment assets relate to operations in Big Town, Victoria.
(State basis of pricing between inter- segment transfer)
(State any change in segment accounting policy)
Commentary - Segment Reporting
Entities that provide Commonwealth funded residential aged care services (RACS) are required
to comply with AASB 114 Segment Reporting (Refer to s21.26F Para 3e Residential Care Subsidy
Amendment Principles 2005 (No. 1)) as a condition of receiving the Commonwealth's Conditional
Adjustment Payments. The level of reporting required is at the Approved Provider (entity) level,
not at individual service level, and entities are required to report as if for-profit.
AASB 114 requires a primary reporting format for segment information about the predominant
source and nature of the entity’s risks and returns and a secondary reporting format for
segment information about the non-predominant source and nature of the entity’s risks and
returns.
AASB 114 requires the disclosure of financial information about the business segments and
geographical segments. It requires disclosure of information about the different types of
products and services an entity provides and the different geographical areas in which it
operates. For entities, the primary reporting segment information is business segments and the
secondary reporting format is geographical segment. Entities are not required to provide a
detailed disclosure for geographical segments, however, the Standard does require some
disclosure to be made. The level of reporting required for geographical segments is illustrated in
the note above.
Business segments are distinguishable components of the entity, not necessarily separately
incorporated. If separate incorporation exists, a subsidiary relationship must be assessed as
per AASB 127.
Entities are required to disclose the financial results of the segments in the notes to the financial
statements. Entities should determine their own business segments based on the guidance of
AASB 114 and in consultation with their Auditor. In order to satisfy the Commonwealth’s RACS
funding requirements RACS must be reported as a segment.
Some examples of other business segments could be linen services, mental health facilities,
catering, car park, diagnostic imaging and other material distinguishable components applicable
to the health services, which meet the requirements of paragraph 35 of AASB 114.
The reporting requirements in AASB 114 form the minimum level of disclosure in respect of each
segment. The materiality of a segment to the reporting entity can be measured in terms of
revenue, surplus/deficit and assets employed. On that basis, only material segments warrant
disclosure by the entity. However, if total external segment revenue attributable to reportable
segments is less than 75% of the total consolidated or entity revenue, additional segments to
RACS should be identified as reportable segments even if they do not meet the 10% thresholds
in paragraph 35 of AASB 114, until at least 75% of the total consolidated or entity revenue is
included in reportable segments.
Entities should be cognisant of paragraphs 47 and 48 of AASB 114 in determining the way in
which asset, liability, revenue, and expense items are allocated to segments.
It is not expected that business segments results identified under AASB 114, would necessarily
correlate to the results for output groups identified in note 2.
Any inter-segment transactions should be eliminated in order to avoid double counting.
Note 27: J ointly Controlled Operations and Assets
Name of Entity Principal Activity 2009 2008% %
Health Service Computer Alliance Information Systems 33.3 33.3
ABC Health Service interest in assets employed in the above jointly controlled operations and assets is detailed below. The amounts are included in the financial statements and consolidated financial statements under their respective asset categories:
2009 2008$'000 $'000
Current AssetsCash and Cash Equivalents 5 1 Inventories - - Total Current Assets 5 1
Non Current AssetsProperty, Plant and Equipment 4 2 Other - - Total Non Current Assets 4 2 Total Assets 9 3
ABC Health Service interest in revenues and expenses resulting from jointly controlledoperations and assets is detailed below:
2009 2008$'000 $'000
RevenuesGrants 15 14 Other (List) - - Total Revenue 15 14
ExpensesInformation Technology and Administrative Expenses 9 10 Other (List) - - Total Expenses 9 10 Profit 6 4
Contingent Liabilities and Capital Commitments(List any contingent liabilities and capital commitments arising from the interest in joint ventures).
Ownership Interest
Commentary – Investments Accounted for Using The Proportionate Consolidation methodWhen accounting for jointly controlled operations or jointly controlled assets, a venturer is to recognise in its financial statements its share of the assets and liabilities and any income and expenses arising from the jointly controlled operation or jointly controlled asset in accordance with AASB 131 Interest in Joint Ventures.
The Honourable Daniel Andrews, MLA, Minister for Health
Governing BoardsI . ThorpeM. KlimL. J onesG.HackettJ . HenryS. O'NeilJ . SchipperL. LentonB. RickardG. RooneyAccountable OfficersMr Donald Trump
Remuneration of Responsible PersonsThe number of Responsible Persons are shown in their relevant income bands;
2009 2008 2009 2008Income Band No. No. No. No.$0 - $9,999 2 - 2 - $10,000 - $19,999 3 7 3 7 $20,000 - $29,999 4 - 4 - $30,000 - $39,999 1 1 1 1 $250,000 - $259,999 1 1 1 1 Total Numbers 11 9 11 9
$464,582 $412,789 $464,582 $412,789
$'000 $'000 $'000 $'000
62 59 62 59
11 6 11 6
1/7/2008 - 30/06/2009
L. Lenton is a director of L.Lenton Pty Ltd w hich provides VMO services to the Health Service on normal commercial terms and conditions.
G. Hackett is a director of ABC Motor Vehicles Pty Ltd w hich provides motor vehicle serving and repairs for the Health Service on normal commercial terms and conditions.
1/7/2008 - 30/06/20091/7/2008 - 30/06/2009
1/07/2008 - 31/12 /20081/01/2009 - 30/06 /2009
Other Transactions of Responsible Persons and their Related Parties.
Total remuneration received or due and receivable by Responsible Persons from the reporting entity amounted to:Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet
1/7/2008 - 30/06/20091/7/2008 - 30/06/20091/7/2008 - 30/06/2009
1/7/2008 - 30/06/2009
Parent Consol'd
Note 28a: Responsible Persons Disclosures
Responsible Ministers:
I n accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.
Period
1/7/2008 - 30/06/20091/7/2008 - 30/06/20091/7/2008 - 30/06/2009
Note 28b: Executive Officer Disclosures
Executive Officers' RemunerationThe numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long- service leave payments, redundancy payments and retirement benefits.
(List any factors that may have affected total remuneration payable to executives over the year. Eg, contract renegotiations, bonus payments during the year, etc)
2009 2008 2009 2008 2009 2008 2009 2008No. No. No. No.
$100,000 - $109,999 - 1 - 1 - 1 - 1 $110,000 - $119,999 - - - 1 - - - 1 $120,000 - $129,999 - - - - - - - - $130,000 - $139,999 - - - - - - - - $140,000 – $149,999 1 - 1 1 1 - 1 1 $150,000 – $159,999 - - - - - - - - $160,000 – $169,999 - - - 1 - - - 1 $170,000 – $179,999 - - 2 2 - - 2 2 $180,000 – $189,999 1 1 1 - 1 1 1 - $190,000 – $199,999 2 2 - - 2 2 - - $200,000 – $209,999 - 1 - - - 1 - - $210,000 – $219,999 2 - 2 1 2 - 2 1 $220,000 – $229,999 - - - - - - - - $230,000 – $239,999 - 1 - - - 1 - - Total 6 6 6 7 6 6 6 7
Total Remuneration 1,144,587$ 1,114,524$ 1,104,975$ 1,088,624$ 1,144,587$ 1,114,524$ 1,104,975$ 1,088,624$
Base RemunerationPARENT CONSOLIDATED
Total Remuneration Base Remuneration Total Remuneration
Commentary - Responsible Person Related Disclosures
FRD 21A Responsible Person and Executive Officer Disclosures in the Financial Report requires
as notes, details of transactions between the Responsible Persons of an entity, or a Responsible
person related party, and the entity. Responsible Persons of entities are the responsible
Minister, Accountable Officer and Board members including anyone acting during the year.
Responsible PersonResponsible PersonThe Act requires "... Responsible Person's remuneration, in bands of $10,000 listing the number
of Responsible persons whose actual remuneration for the period falls within each band."
The responsible Minister for all public health services is the Minister for Health who does not
have a remuneration paid by the entity. However, if any other transactions between the entity
and the Minister exist they must be reported.
The Accountable Officer for a entity is the Chief Executive Officer (CEO). The remuneration of a
CEO is reported Remuneration of Responsible Persons.
CEO's must disclose total remuneration received including access to motor vehicles,
superannuation and other entitlements by way of salary package. Any other transactions of a
remuneration nature between the entity and the CEO must be reported.
All transactions between Board members, their related parties and the entity must be reported.
Employees of the entity and VMOs, for example doctors who are members of the governing
Board must disclose, under other transactions, that these doctors are in receipt of remuneration
for clinical services provided and not for their role on the Board.
Executive OfficerExecutive Officer"An executive officer includes a person employed as an executive officer at an annual
remuneration rate not less than an executive employed by a department." (FRD21A Responsible
Person and Executive Officer Disclosures in the Financial Report).
For disclosure purposes, entities are required to include as Executive Officers the following:
(officers on remuneration packages in excess of $100,000).
Deputy CEO; and
Other administration officers including:
– Director of Medical Services
– Director of Nursing
– Directors of Services within the entity including business units.
Remuneration includes all benefits received or receivable. Accordingly, remuneration needs to
be determined on an accrual basis. Base remuneration (amounts paid or payable during the
reporting period excluding bonuses, redundancy payments, long service leave and retirement
benefits) must be separately disclosed from total remuneration. Where the difference between
base and total remuneration is material, the reason for the variance should be supported by
explanatory commentary.
Disclosure is required of the number of executive officers whose total remuneration for the year
falls within each successive $10,000 band, commencing at $100,000. However, in accordance
with FRD 21, the base remuneration of executive officers should be disclosed separately. This
will require disclosure of the number of executives whose base remuneration is less than
$100,000, but their total remuneration is greater than this amount. It does not require
disclosure by name. Where a Responsible Person already has a remuneration disclosed it does
not need to be duplicated under Executive Officers disclosures.
Doctors should not be included unless they are involved in the executive and management
functions of the entity. Where doctors are included the total remuneration must include
payments from Special Trust funds under the control of the reporting entity.
Note 29: Events Occurring after the Balance Sheet Date
(a) the nature of the event; and(b) an estimate of its financial effect, or a statement that such an estimate cannot be made.
Disclose the following for each material category of non- adjusting event after the reporting date:
Commentary - Events Occurring after the Balance Sheet Date
Non-adjusting events after reporting date
A non-adjusting event is an event that is indicative of conditions that arose after the reporting
date. For examples of non-adjusting events refer to AASB 110 Events after the Balance Sheet
Date.
Updating disclosures about conditions at the reporting date
If an entity receives information after the reporting date about conditions that existed at the
reporting date, it shall update disclosures that relate to these conditions, in light of the new
information. For example, if evidence becomes available after the reporting date about a
contingent liability that existed at the reporting date, in addition to considering whether to
recognise or change a provision under AASB 137 Provisions, Contingent Liabilities and
Contingent Assets, the entity should update its disclosures about the contingent liability in light
of the evidence.
Note 30: Controlled Entities(List all controlled entities included in this annual report)
Name of entity Country of incorporation
Equity Holding
XYZ Holdings Pty Ltd trading as ABC Hospital Australia 100%
EFG Hospital Foundation Limited as trustee for EFF Foundation Trust Funds
Australia 100%
J KL Health Care Group Foundation Charitable Trust Australia 100%
Commentary - Controlled Entity
A controlled entity refers to a separately incorporated entity in which the decision-making
capacity is dominated directly or indirectly by the reporting entity in relation to financial and
operating policies of the entity so as to enable the entity to operate under those policies in
pursuing the objectives of the reporting entity. A common form of control within the pubic
hospital industry is the capacity of the reporting entity to dominate the composition of the
board of directors or governing board of another entity (Refer AASB 127 Consolidated and
Separate Financial Statements).
Disclosure of controlled entities
Paragraph AUS42.1 of AASB 127 requires the identity and certain details of controlled entities
to be disclosed. The concept of materiality in AASB 1031 applies to these disclosure
requirements, and in some circumstances disclosures may not be necessary because they are
not material.
Note 31: Economic Dependency
(a) the name of the entity on which there is an economic dependency; and(b) the nature of that economic dependency.
An entity dependent on another entity for a significant volume of revenue or financial support and that dependency is not clearly discernible from a separate line item in the income statement or the balance sheet shall disclose:
Note 32: Discontinued Operations
(Insert name of operation to be discontinued)Parent Entity
Parent Entity Consol'd Consol'd
2009 2008 2009 2008$'000 $'000 $'000 $'000
(a) Net result from discontinued operations:Revenues from ordinary activitiesExpenses from ordinary activitiesNet Result
Gain/ (loss) on re- measurement to fair value less costs to sellGain/ (loss) on disposal of operationNet Result from discontinued operations
Cash Flows from discontinued operationsCash inflow/(outflow) from operating activitiesCash inflow/(outflow) from investing activitiesCash inflow/(outflow) from financing activitiesTotal cash inflow (outflow)
(b) Carrying amounts of assets and liabilities (major classes) comprising the operations classified as held for sale at balance dateAssets Property, plant and equipment Trade receivables Cash and cash equivalents InventoriesTotal Assets
Liabilities Trade creditors Provision for employee benefitsTotal LiabilitiesNet Assets Held for Sale
(c) Equity (major classes) comprising the operations classified as held for sale at balance dateAsset revaluation reserveOther (describe)
Amounts recognised in equity relating to non-current assets classified as held for sale
(Provide details of the discontinued operation; the business segments, geographical segments or major activities in which the discontinuing operation is reported; the date and nature of the initial disclosure event; and date or period the operation is expected to be discontinued.)
* If this note is applicable, then becomes note 2
Commentary - Discontinued Operations
A restructuring, transaction or other event must be reported as a discontinued operation when,
and only when, it meets the definition of a discontinued operation in accordance with AASB 5
Non-Current Assets held for Sale and Discontinued Operations.
A discontinued operation is a component of an entity that
(a) either has been disposed of or is classified as held-for-sale and represents a separate
major line of business or geographical area of operations;
(b) is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations; or
(c) is a subsidiary acquired exclusively with a view to resale.
A component of an entity comprises operations and cash flows that can be clearly
distinguished, operationally and for financial reporting purposes, from the rest of the entity. In
other words, a component of an entity will have been a cash-generating unit or a group of
cash-generating units while being held for use.
Changing the scope of an operation or the manner in which it is conducted does not result in a
discontinuing operation, because that operation although changing is continuing. An example
is the outsourcing activities previously conducted internally.
Refer to AASB 5 Non-Current Assets Held for Sale and Discontinued Operations for further
detail.
Note 33: Correction of error and revision of estimates
Correction of error
(Disclose the following:(a) the nature of the prior period error.(b) for each prior period presented, to the extent practicable, the amount of the correction for each financial statement line item affected.(c) the amount of the correction at the beginning of the earliest prior period presented, and (d) if retrospective restatement is impracticable for a particular prior period, the circumstances that led to an existence of that condition and a description of how and from when the error has been corrected.)
The error has been corrected by restating each of the affected financial statement line items for the prior year(s), as described above.
Revision of estimates
* If this note is applicable, then becomes note 2 (if there is no discontinued operation), if there is a discontinued operation then becomes note 3
(Disclose the nature and amount of a change in accounting estimate that has an effect in the current period or is expected to have an effect in future periods, except for the disclosure of the effect on future periods when it is impracticable to estimate the effect. If the amount of the effect in future periods is not disclosed because estimating it is impracticable, that fact shall be disclosed.)
Correction of error and revision of estimates
Prior Period Errors
Under AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, entities are
required to correct material prior period errors retrospectively in the first financial report
authorised for issue after their discovery by:
restating the comparative amounts for the prior period(s) presented in which the error
occurred, or
if the error occurred before the earliest prior period presented, restating the opening
balances of assets, liabilities and equity for the earliest prior period presented.
A prior period error shall be corrected by retrospective restatement except to the extent that it is
impracticable to determine either the period-specific effects or the cumulative effect of the error.
Retrospective restatement is correcting the recognition, measurement and disclosure of amounts
of elements of financial statements as if a prior period error had never occurred.
When it is impracticable to determine the period-specific effects of an error on comparative
information for one or more prior periods presented, the entity should restate the opening
balances of assets, liabilities and equity for the earliest period for which retrospective
restatement is practicable (which may be the current period).
When it is impracticable to determine the cumulative effect, at the beginning of the current
period, of an error on all prior periods, the entity should restate the comparative information to
correct the error prospectively from the earliest date practicable.
In applying paragraph above, an entity shall disclose the following:
(a) the nature of the prior period error
(b) for each prior period presented, to the extent practicable, the amount of the
correction for each financial statement line item affected;
(c) the amount of the correction at the beginning of the earliest period presented; and
(d) if retrospective restatement is impracticable for a particular prior period, the
circumstances that led to the existence of that condition and a description of how
and from when the error has been corrected.
Financial reports of subsequent periods need not repeat these disclosures.