Annual Report - Northern Health

Note 1: Summary of Significant Accounting Policies(t) Going ConcernNotes To and Forming Part of the Financial StatementsNorthern Health Annual Report 2011/2012The going concern basis was used to prepare the financial statements. The Department of Health has provided assurances to support the ongoing operations and financial requirements of NorthernHealth and to provide Northern Health with adequate cash flow support to enable Northern Health to meet its current and future obligations as and when these fall due for a period up to September2012 should this be required.(u) Accounting Standards issues that are not yet effectiveCertain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2012 reporting period. As at 30 June 2012, the following standards andinterpretations had been issued but were not mandatory for financial years ending 30 June 2012. Northern Health has reviewed these new accounting standards and interpretations which are notmandatory for the financial year ended 30 June 2012 and has not and does not intend to adopt these standards early. The following list records new standards and interpretations that may have somerelevance to future disclosures for Northern Health.Standard / Interpretation SummaryAASB 9 Financial instruments This standard simplifies requirements for theclassification and measurement of financial assetsresulting from Phase 1 of the IASB’s project toreplace IAS 39 Financial Instruments: Recognitionand Measurement (AASB 139 Financial Instruments:Recognition and Measurement).Applicable for reporting periods beginning onor ending on:Impact on Financial StatementsBeginning 1 Jan 2013 Detail of impact is still being assessed.AASB 10 Consolidated Financial Statements This Standard establishes principles for thepresentation and preparation of consolidatedfinancial statements when an entity controls one ormore other entities and supersedes thoserequirements in AASB 127 Consolidated andSeparate Financial Statements and Interpretation112 Consolidation – Special Purpose Entities.Beginning 1 Jan 2013 Not-for-profit entities are not permitted to apply thisStandard prior to the mandatory application date.The AASB is assessing the applicability of principlesin AASB 10 in a not-for-profit context. As such,impact will be assessed after the AASB’sdeliberation.AASB 12 Disclosure of Interests in Other Entities This Standard requires disclosure of information thatenables users of financial statements to evaluate thenature of, and risks associated with, interests inother entities and the effects of those interests onthe financial statements. This Standard replaces thedisclosure requirements in AASB 127 and AASB 131.Beginning 1 Jan 2013 Not-for-profit entities are not permitted to apply thisStandard prior to the mandatory application date.The AASB is assessing the applicability of principlesin AASB 12 in a not-for-profit context. As such,impact will be assessed after the AASB’sdeliberation.AASB 13 Fair Value Measurement This Standard outlines the requirements formeasuring the fair value of assets and liabilities andreplaces the existing fair value definition andguidance in other AASs. AASB 13 includes a ‘fairvalue hierarchy’ which ranks the valuation techniqueinputs into three levels using unadjusted quotedprices in active markets for identical assets orliabilities; other observable inputs; and unobservableinputs.Beginning 1 Jan 2013 Disclosure for fair value measurements usingunobservable inputs are relatively onerous comparedto disclosure for fair value measurements usingobservable inputs. Consequently, the Standard mayincrease the disclosures for public sector entities thathave assets measured using depreciatedreplacement cost.Northern Health Financial Report Appendix to the 2011 - 2012 Annual Report Page 18 of 60