NEWSBOYS FOUNDATION ANNUAL REPORT 2017 31 NEWSBOYS FOUNDATION FINANCIAL REPORT Newsboys Foundation (A Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2017 1. Significant accounting policies Newsboys Foundation is a Company (limited by guarantee) domiciled in Australia. The financial report was authorised for issue by the Directors on 21 September 2017. (a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Charities and Not-for-profits Commission Act 2012, Australian Accounting Standards Board (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB). The financial report of the Foundation also complies with International Financial Reporting Standards (IFRS) and interpretations adopted by the International Accounting Standards Board. (b) Basis of preparation As stated above, the Foundation has adopted the above-mentioned accounting standards. However, those standards or amendments that were available for early adoption have not been adopted. The quantification of the potential impact of non-adoption of those standards and amendments is not known or reasonably estimated in the current financial year. The Foundation has reviewed each of these new standards and interpretations and is satisfied that they have no impact on the reported financial position and performance of the Foundation for the year ended 30 June 2017. The financial report is prepared on an accrual basis and is based on historical cost, except for investments in listed securities which have been stated at fair value. The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. In particular, information about impairment of investments is a significant area of judgement as described in note 1(e). There are no significant assumptions or sources of estimates that have a potential to cause a material adjustment to the carrying amounts of assets or liabilities in the next year. The accounting policies set out below have been applied consistently to all periods presented in the financial statements. (c) Functional and presentation currency These financial statements are presented in Australian dollars which is the Foundation’s functional currency. (d) Financial assets Investments in listed securities held by the Foundation are classified as being available-for-sale and are stated at fair value, with any resultant gain or loss being recognised directly in equity (investment revaluation reserve) – unless the reduction in fair value is judged to represent an impairment in which case the reduction is recognised in the statement of comprehensive income. When these investments are derecognised, the cumulative gain or loss previously recognised directly in equity is recognised in profit or loss. The fair value of investments in listed securities classified as available-for-sale is their quoted bid price at the reporting date. Available-for-sale investments are recognised/ derecognised by the Foundation on the date it purchases/sells the investments. (e) Impairment Available-for-sale financial assets are assessed at each reporting date to determine whether there is any objective evidence that they are impaired. A financial asset is considered to be impaired if the fair value of the asset at period end had declined significantly below the asset’s original cost or if the asset had steadily declined over a prolonged period of time and the fair value at period end is lower than the asset’s original cost. Any impairment losses are recognised in the statement of comprehensive income. Any cumulative loss in respect of available for sale financial assets recognised previously in equity is transferred to the statement of comprehensive income. Any future reversals of impairment losses are recognised directly in equity through the reserve. (f) Receivables Receivables are stated at their amortised cost less impairment losses. (g) Investment revenue Interest revenue is recognised in the statement of comprehensive income as it accrues. Dividend and distribution revenue is recognised in the statement of comprehensive income on the date the Foundation’s right to receive payments is established, which in the case of listed securities is the date the dividend is declared.