ANNUAL REPORT - Northern Health
ANNUAL REPORT - Northern Health
ANNUAL REPORT - Northern Health
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Note 1: Statement of Significant Accounting Policies<br />
Notes To and Forming Part of the Financial Statements<br />
<strong>Northern</strong> <strong>Health</strong> Annual Report 2009/2010<br />
(a) Statement of compliance<br />
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<br />
Accounting Standards (AASs) and Australian Accounting Interpretations. AASs includes Australian equivalents to International Financial Reporting Standards.<br />
The financial statements also comply with relevant Financial Reporting Directives (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SDs) authorised<br />
by the Minister for Finance.<br />
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.<br />
(b) Basis of preparation<br />
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<br />
the fair values of the consideration given in exchange for assets.<br />
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<br />
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<br />
form the basis of making the judgments. Actual results may differ from these estimates.<br />
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<br />
affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods.<br />
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<br />
substance of the underlying transactions or other events is reported.<br />
The accounting policies set out below have been applied in preparing the financial report for the year ended 30 June 2010, and the comparative information presented in these financial<br />
statements for the year ended 30 June 2009.<br />
(c) Going Concern<br />
The going concern basis was used to prepare the financial statements.<br />
The Department of <strong>Health</strong> has provided assurances to support the on-going operations and financial requirements of <strong>Northern</strong> <strong>Health</strong> and to provide <strong>Northern</strong> <strong>Health</strong> with adequate cash flow<br />
support to enable <strong>Northern</strong> <strong>Health</strong> to meet its current and future obligations as and when these fall due for a period up to September 2011 should this be required.<br />
(d) Reporting Entity<br />
The financial statements include all the controlled entities of <strong>Northern</strong> <strong>Health</strong>.<br />
The principle address is:<br />
185 Cooper Street<br />
Epping<br />
VIC 3076<br />
(e) Rounding Of Amounts<br />
All amounts shown in the financial report are expressed to the nearest $1,000 unless otherwise stated.<br />
(f) Principles of Consolidation<br />
The assets, liabilities, incomes and expenses of the Controlled Entities of <strong>Northern</strong> <strong>Health</strong> have been included at the values shown in their audited Annual Financial Reports. Subsidiaries are<br />
entities controlled by <strong>Northern</strong> <strong>Health</strong>; control exists when <strong>Northern</strong> <strong>Health</strong> has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In<br />
assessing control, potential voting rights that presently are exercisable are taken into account. Any inter-entity transactions have been eliminated on consolidation. The consolidated financial<br />
statements include the audited financial statements of the controlled entities listed in note 26.<br />
(g) Cash and Cash Equivalents<br />
Cash 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<br />
known amounts of cash and are subject to insignificant risk of changes in value.<br />
For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current borrowings in the balance sheet.<br />
<strong>Northern</strong> <strong>Health</strong> Financial Report Appendix to the 2009 - 2010 Annual Report <br />
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