NEW SOUTH WALES CANCER COUNCIL
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2004
1. STATEMENT OF ACCOUNTING POLICIES The Council’s financial statements are a general purpose financial report which have been prepared on an accruals basis and in accordance with: • Applicable Australian Accounting Standards; • Other authoritative pronouncements of the Australian Accounting Standards Board (AASB); • UIG Consensus Views; • The requirements of the Public Finance and Audit Act and Regulations; and • Relevant NSW Government reporting directives. In the absence of a specific Accounting Standard, other authoritative pronouncement of the AASB or UIG Consensus View, the hierarchy of other pronouncements as outlined in AAS 6 “Accounting Policies” is considered. Except for certain investments and certain land and buildings, which are recorded at valuation, the financial statements are prepared in accordance with the historical cost convention. Costs in relation to assets represent the amount of cash paid or the fair value of the asset given in exchange. The Statement of Cash Flows is prepared using the direct method. The Council has kept proper accounts and records for all its operations as per section 41(1) of the Public Finance and Audit Act, 1983. Below is a summary of the significant accounting policies adopted by the New South Wales Cancer Council in the preparation of the accounts, which are consistent with those of the previous year (except as otherwise stated). a) Income Recognition Government contract management income is recognised as income when control over the assets comprising the income is obtained. Control over the assets is normally obtained upon receipt. Where Government contract management income has been recognised as income during the reporting period and was obtained on the condition that it should be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions are disclosed in Note 2. Revenue is recognised when the Council has control of the good or right to receive, it is probable that the economic benefits will flow to the Council and the amount of revenue can be measured reliably. Revenue from the sale of goods and services comprises revenue from the provision of products or services i.e. user charges. b) Income Tax The New South Wales Cancer Council is exempt from income tax within the terms of Subdivision 50-5 of the Income Tax Assessment Act. c) Cash For the purpose of the statement of cash flows, cash includes cash on hand and at bank. d) Receivables Receivables are recognised and carried at the original invoice amount less a provision for any uncollectible debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. e) Investments Dividends are brought to account as they are received, and interest is brought to account on an accrual basis. Managed Fund investments are brought to account at their redemption value, with the exception of Bonds, which are brought to account at market value.
NSW CANCER COUNCIL · ANNUAL REPORT 2003/04
Cancer Council NSW Annual Report 2003-2004