47 l BRADKEN LIMITED ANNUAL REPORT 2014
Notes to the consolidated financial statements
30 June 2014
(continued)
2 Summary of significant accounting policies (continued)
(ab) Parent entity financial information
(i)
Investments in subsidiaries, associates and joint venture entities
(ii) Tax consolidation legislation
(iii) Financial guarantees
The parent entity is a guarantor under the Bradken Group - Common Terms Deed Poll and unconditionally and irrevocably
guarantees payments due in connection with any financing facilities owed by any Group company.
The head entity, Bradken Limited, and the controlled entities in the tax consolidated group account for their own current and
deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand
alone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Bradken Limited also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax
consolidated group.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Bradken
Limited for any current tax payable assumed and are compensated by Bradken Limited for any current tax receivable and
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Bradken Limited under the tax
consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned
entities' financial statements.
The amounts receivable/payable are due upon receipt of the funding advice from the head entity, which is issued as soon as
practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist
with its obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts
receivable from or payable to other entities in the group.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are
recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of
Bradken Limited.
Bradken Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.
IFRS 15 Revenue from Contracts with Customers
(effective for annual periods beginning on or after 1 January 2017)
IFRS 15 establishes principles for reporting useful information to users of financial statements about the nature, amount, timing
and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The core principle of IFRS 15 is
that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group has not yet
decided when to adopt IFRS 15.
The financial information for the parent entity, Bradken Limited, disclosed in note 36 has been prepared on the same basis as
the consolidated financial statements, except as set out below.
There are no other standards that are not yet effective and that are expected to have a material impact on the group in the
current or future reporting periods on foreseeable future transactions.
AASB 1031 Materiality
(effective for annual periods beginning on or after 1 January 2014)
The revised AASB 1031 is an interim standard that cross-references to other Standards and the Framework (issued December
2013) that contain guidance on materiality. AASB 1031 will be withdrawn when references to AASB 1031 in all Standards and
Interpretations have been removed. The standard will be adopted by the Group from 1 July 2014.
Page 47
Bradken Limited
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINUED)
1...,74,75,76,77,78,79,80,81,82,83 85,86,87,88,89,90,91,92,93,94,...136