PURPLE HANDS FOUNDATION

The Statement of Cash Flows should be read in conjunction with the accompanying notes.

The financial statements of the Foundation for the period 21 July 2021 to 31 October 2022 were authorised for issue by the Directors on 31 May 2023.

The Foundation is a not-for-profit entity and a company limited by guarantee domiciled in Australia. In accordance with the Constitution, the liability of members in the event of the Foundation being wound up would not exceed $100 per member.

The requirements of Accounting Standards issued by the Australian Accounting Standards Board and other professional reporting requirements in Australia do not have mandatory applicability to the Foundation because it is not a “reporting entity” as there are no users dependent on general purpose financial statements. The Directors have determined that for the financial report to present fairly the Foundation’s financial position and performance, the requirements of Accounting Standards relating to the recognition, measurement and classification of assets, liabilities, revenues, expenses, and equity should be complied with.

The financial report has been prepared on an accrual basis of accounting including the historical cost convention. The financial report has been prepared on a going concern assumption. The financial report is presented in Australian dollars.

This financial report has been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 107 'Statement of Cash Flows', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 110 ‘Events after the Balance Sheet Date’, ‘AASB 124 Related Party Disclosures’, AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', as appropriate for not-for-profit oriented entities.

Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Foundation for the reporting period ended 31 October 2022. The Directors have not adopted any of these new or amended standards or interpretations. The Directors have not yet fully assessed the impact of these new or amended standards (to the extent relevant) and interpretations.

The Foundation’s current accounting period is from 21 July 2021 to 31 October 2022 to meet the filing requirements of the Australian Charities and Not for Profit Commission (“ACNC”) Accordingly, there is no comparative period.

The carrying amounts of certain assets and liabilities are determined based on estimates and assumptions of future events. The estimates and underlying assumptions are reviewed on an ongoing basis.

In the current year, the Foundation has adopted all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are relevant to its operations

Cash in the balance sheet comprises cash at bank

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above. The Foundation does not have any bank overdraft facilities.

Trade receivables are recognised and carried at original invoice amount less a provision for any expected credit losses (ECLs). In calculating the ECL a simplified approach is applied, with a loss allowance recognised based on lifetime ECLs at each reporting date.

Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the entity.

AASB 15 ‘Revenue from Contracts with Customers’ and AASB 1058 ‘Income for Not-For-Profit Entities’ establish a comprehensive framework for determining whether, how much, and when revenue is recognized. They replace existing revenue recognition guidance, including AASB 18 ‘Revenue’, AASB 1004 ‘Contributions’, AASB 11 ‘Construction Contracts’ and IFRIC 13 ‘Customer Loyalty Programmes’. AASB 15 and AASB 1058 have been considered and the current treatment of income is within the guidelines of the new standards. Revenue from contracts with customers is recognised when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Foundation expects to be entitled in exchange for those goods or services, and when the performance obligations for each different activity have been met.

The following specific recognition criteria must also be met before revenue is recognised:

The Foundation’s programs are supported by contributions from the State.

Revenue will be recognised over time as services are delivered with any balance unearned recognised on the balance sheet to the extent of future delivery of contracted services. Management calculates the provision for unspent grants with regards to the service delivery of contracted services across the period.

Pursuant to the terms of the grant arrangement, the Government may request a refund for unspent grants where there has been an under provision of service.

Revenue from the provision of services is recognised on the date of delivery of those services to the recipient. Fees charged for services provided to clients are recognised when the service is provided.

Donations collected are recognised as income when the Foundation gains control, economic benefits are probable and the amount of the donation may be measured reliably.

Unearned income represents deposits, payments on account and payments in advance from funders for program funding, where the Foundation has a contractual or constructive liability to repay such amounts to the other party in the event that the Foundation does not deliver the services. Unearned income is recognised as the amount received by the Foundation and is deferred until the delivery of the service.

The Foundation is exempt from tax under the Income Tax Assessment Act 1997.

Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries, annual leave, sick leave and long service leave.

Liabilities arising in respect of wages and salaries, annual leave, sick leave and any other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on the remuneration rates which are expected to be paid when the liability is settled. All other employee benefit liabilities are measured at the present value of the estimate future cash outflow to be made in respect of services provided by employees up to the reporting date. In determining the present value of future cash outflows, the interest rates attaching to commercial bond securities which have terms to maturity approximating the terms of the related liability are used.

Employee benefit expenses and revenues arising in respect of the following categories:

- wages and salaries, non-monetary benefits, annual leave, long service leave, sick leave, and other leave benefits; and other types of employee benefits are recognised against profits on a net basis in their respective categories.