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BRADKEN LIMITED ANNUAL REPORT 2013 45
Notes to the consolidated financial statements
30 June 2013
(continued)
1 Summary of significant accounting policies (continued)
(y) Goods and services tax (GST)
(z) Rounding of amounts
(aa) Amended accounting standards and UIG interpretations
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to, the taxation authority are presented as operating cash flows.
Certain amended accounting standards and interpretations have been published that are not mandatory for 30 June 2013
reporting periods. The Group’s and the parent entity’s assessment of the impact of these amended standards and
interpretations is set out below.
The Company is of a kind referred to in Class order 98/0100, issued by the Australian Securities and Investments Commission,
relating to the ''rounding off'' of amounts in the financial report. Amounts in the financial report have been rounded off in
accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
AASB 10
Consolidated Financial Statements,
AASB 11
Joint Arrangements,
AASB 12
Disclosure of Interests in Other
Entities,
revised AASB 127
Separate Financial Statements and
AASB 128
Investments in Associates and Joint
Ventures
and AASB 2011-7
Amendments to Australian Accounting Standards arising from the Consolidation and
Joint Arrangements Standards
(effective for annual periods beginning on or after 1 January 2013)
In August 2011, the AASB issued a suite of five new and amended standards which address the accounting for joint
arrangements, consolidated financial statements and associated disclosures. AASB 10 replaces all of the guidance on control
and consolidation in AASB 127
Consolidated and Separate Financial Statements
, and Interpretation 12
Consolidation – Special
Purpose Entities
. The core principle that a consolidated entity presents a parent and its subsidiaries as if they are a single
economic entity remains unchanged, as do the mechanics of consolidation. However the standard introduces a single definition
of control that applies to all entities. It focuses on the need to have both power and rights or exposure to variable returns before
control is present. Power is the current ability to direct the activities that significantly influence returns. Returns must vary and
can be positive, negative or both. There is also new guidance on participating and protective rights and on agent/principal
relationships. While the group does not expect the new standard to have a significant impact on its composition, it has yet to
perform a detailed analysis of the new guidance in the context of its various investees that may or may not be controlled under
the new rules.
AASB 12 sets out the required disclosures for entities reporting under the two new standards, AASB 10 and AASB 11, and
replaces the disclosure requirements currently found in AASB 128. Application of this standard by the group will not affect any
of the amounts recognised in the financial statements, but will impact the type of information disclosed in relation to the group's
investments. Amendments to AASB 128 provide clarification that an entity continues to apply the equity method and does not
remeasure its retained interest as part of ownership changes where a joint venture becomes an associate, and vice versa. The
amendments also introduce a “partial disposal” concept. The group is still assessing the impact of these amendments. The
group does not expect to adopt the new standards before their operative date. They would therefore be first applied in the
financial statements for the annual reporting period ending 30 June 2014.
AASB 13
Fair Value Measurement
and AASB 2011-8
Amendments to Australian Accounting Standards arising from
AASB 13
(effective for annual periods beginning on or after 1 January 2013)
AASB 13 was released in September 2011. It explains how to measure fair value and aims to enhance fair value disclosures.
The group has yet to determine which, if any, of its current measurement techniques will have to change as a result of the new
guidance. It is therefore not possible to state the impact, if any, of the new rules on any of the amounts recognised in the
financial statements. However, application of the new standard will impact the type of information disclosed in the notes to the
financial statements. The group does not intend to adopt the new standard before its operative date, which means that it would
be first applied in the annual reporting period ending 30 June 2014.
AASB 2011-4
Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel
Disclosure Requirements
(effective for annual periods beginning on or after 1 January 2013)
In July 2011 the AASB decided to remove the individual key management personnel (KMP) disclosure requirements from AASB
124 Related Party Disclosures , to achieve consistency with the international equivalent standard and remove a duplication of
the requirements with the Corporations Act 2001 . While this will reduce the disclosures that are currently required in the notes
to the financial statements, it will not affect any of the amounts recognised in the financial statements. The amendments apply
from 1 July 2013 and cannot be adopted early. The Corporations Act requirements in relation to remuneration reports will
remain unchanged for now, but these requirements are currently subject to review and may also be revised in the near future.
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Bradken Limited