Bradken Limited Annual Report 2015 - page 90

55 l BRADKEN LIMITED ANNUAL REPORT 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
30 June 2015
(continued)
8 Income tax expense (continued)
(e)
9 Cash and cash equivalents
2015
2014
$'000
$'000
Cash at bank and in hand*
278,408
144,479
(a)
The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:
2015
2014
$'000
$'000
Cash and cash equivalents above
278,408
144,479
Bank overdrafts (note 20)
(188)
-
Balances per statement of cash flows
278,220
144,479
(b)
The Group's and parent entity's exposure to interest rate risk is discussed in note 3.
Bradken Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation as of 1
July 2003. The accounting policy in relation to this legislation is set out in note 2(f).
Interest rate risk exposure
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 the financial year. The head entity may also require payment of interim funding amounts to assist
with its obligations to pay tax instalments.
Reconciliation to cash at the end of the year
Tax consolidation legislation
On adoption of the tax consolidation legislation, the entities in the tax consolidated group entered into a tax sharing agreement
which, in the opinion of the directors, limits the joint and several liability of the wholly-owned entities in the case of a default by
the head entity, Bradken Limited.
The Australian entities have also entered into an 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 the 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.
* As at 30 June 2015, the Group had $19.2m (30 June 2014: $23.2m) of restricted cash and related payables.
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