Building for a brighter future - GHA Central

Financial: Financial Results
Notes to and forming part of the Financial Statements for the year ended 30 June 2006
(y) Financial Instruments - Adoption of AASB 132 and AASB 139
The Health Service has elected not to restate comparative information for financial instruments within the scope of
AASB 132 Financial Instruments: Presentation and Disclosure and AASB 139 Financial Instruments: Recognition
and Measurement, as permitted on the first-time adoption of A-IFRS. The accounting policies applied to
accounting for financial instruments in the current financial year are detailed in notes 1(c), 1(f) and 1(k). The
following accounting policies were applied to accounting for financial instruments in the comparative financial
year:
- Other financial assets are valued at cost and are classified between current and non current assets based on the
Board of Director's intention at balance date with respect to the timing of disposal of each asset. Interest revenue
from other financial assets is brought to account when it is earned.
(z) Information Technology Alliance
The Health Service is a member of the Gippsland Health Alliance (GHA), which comprises hospitals and
Community Health Services located in Gippsland. The Alliance has received Grants for the purpose of
implementing regional Information Technology initiatives. A proportionate share of income received and
expenditure incurred by the Alliance is included as IT expenditure (refer note 2b & note 8).
(aa) Net result from Continuing Operations Before Capital & Specific Items
A-IFRS allows the inclusion of additional subtotals on the face of the operating statement when such presentation
is relevant to an understanding of an entity’s financial performance. This financial report includes an additional
subtotal entitled “Net Result From Continuing Operations Before Capital & Specific Items”.
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. It also includes donations of plant and
equipment (refer note 1 (m)). 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:
- Voluntary departure packages
- Write-down of inventories
- Non-current asset revaluation increments/decrements
- Diminution in investments
- Restructuring of operations (disaggregation/aggregation of health services)
- Litigation settlements
- Non-current assets lost or found
- Forgiveness of loans
- Reversals of provisions
- 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 non current assets, includes all impairment losses (and reversal of previous impairment losses),
related to non current assets only which have been recognised in accordance with note 1(j)
● Depreciation and amortisation, as described in note 1(i)
● Assets provided free of charge, as described in note 1(m)
● Expenditure using capital purpose income, which comprises expenditure using capital purpose income which
falls below the asset capitalisation threshold and therefore does not result in the recognition of an asset in the
balance sheet. The asset capitalisation threshold is set at $1,000 (2005: $1,000).
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