Bradken Limited Annual Report 2015 - page 76

41 l BRADKEN LIMITED ANNUAL REPORT 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
30 June 2015
(continued)
2 Summary of significant accounting policies (continued)
(x) Earnings per share
(i)
Basic earnings per share
(ii) Diluted earnings per share
(y) Goods and services tax (GST)
(z) Rounding of amounts
(aa) Amended accounting standards and UIG interpretations
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.
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 International
Accounting Standards Board ("IASB") has agreed in principle to defer the application of this standard to annual periods
beginning on or after 1 January 2018. The Australian Accounting Standards Board will amend the Australian standard
accordingly when the IASB has finalised this change. The Group is currently assessing the impact of IFRS 15 and has not yet
decided when to adopt it.
Certain amended accounting standards and interpretations have been published that are not mandatory for 30 June 2015
reporting periods. The Group’s and the parent entity’s assessment of the impact of these amended standards and
interpretations is set out below.
AASB 9 Financial Instruments
(effective for annual periods beginning on or after 1 January 2018)
In January 2015 the IASB issued the final version of IFRS 9 which replaces IAS 39 and includes a logical model for
classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantially-reformed
approach to hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018. However, the
Standard is available for early application. The own credit changes can be early applied in isolation without otherwise changing
the accounting for financial instruments. The final version of IFRS 9 introduces a new expected-loss impairment model that will
require more timely recognition of expected credit losses.
A revised version of AASB 9 (AASB 2013-9) was issued in December 2013 which included the new hedge accounting
requirements, including changes to hedge effectiveness testing, treatment of hedging costs, risk components that can be
hedged and disclosures. AASB 9 includes requirements for a simplified approach for classification and measurement of
financial assets compared with the requirements of AASB 139. The Group has not yet decided when to adopt AASB 9.
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the year.
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.
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.
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
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.
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