Home' Japara Healthcare Annual Report : Japara Healthcare Annual Report 2016 Contents A. About this report
A1. Reporting entity
Japara Healthcare Limited (the Company) is a company domiciled in Australia. The Company was incorporated on 19 March 2014. The
consolidated financial statements comprise the Company and its subsidiaries (collectively ‘the Group’ and individually ‘Group companies’).
The Company’s registered office is at Q1 Building, Level 4, 1 Southbank Boulevard, Southbank, Victoria, 3006, Australia.
The Group is a for profit entity and is primarily involved in the provision of residential aged care services throughout Australia (see Note B1).
A2. Basis of accounting
The consolidated financial statements are general purpose financial statements that have been prepared in accordance with Australian
Accounting Standards (AASs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated
financial statements comply with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards
The financial statements have been prepared on a going concern basis, which assumes that the Group will be able to meet its obligations
associated with all financial liabilities.
The Group’s current liabilities exceed current assets by $431,023,000 as at 30 June 2016 (2015: $315,722,000). This mainly arises because of
the requirement to classify obligations relating to Refundable Accommodation Deposits (RADs), accommodation bonds and independent living
unit (ILU) resident loans of $404,582,000 (2015: $325,251,000) as current liabilities (refer Note E6 for further details), whereas the investment
properties, property, plant and equipment, and intangible assets to which they relate are required to be classified as non-current assets.
Note E3(b) explains that liquidity risk is controlled through monitoring forecast cash flows and ensuring adequate access to financial
instruments that are readily convertible to cash. This is also achieved by maintaining a liquidity management strategy to ensure that the Group
has sufficient liquidity to enable it to refund accommodation bonds and RADs that are expected to fall due within the next 12 months.
The financial statements were authorised for issue by the Board of Directors on 22 August 2016. Details of the Group’s accounting policies
are included in their respective notes.
A3. Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the Group’s functional currency.
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 dated 24 March
2016 and in accordance with that Instrument, all financial information presented in Australian dollars has been rounded to the nearest thousand
unless otherwise stated.
A4. Use of estimates and judgements
In preparing these financial statements, management has made estimates, judgements and assumptions that affect the application of the
Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets
The Group has an established control framework with respect to the measurement of fair values. The Chief Financial Officer has overall
responsibility for overseeing all significant fair value measurements, including Level 3 measurements.
The finance team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes
or pricing services, is used to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the
conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should
Significant valuation issues are reported to the Audit, Risk and Compliance Committee.
Notes to the Financial Statements
For the year ended 30 June 2016
42 Japara Healthcare Annual Report 2016
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