Notes to the consolidated financial statements
30 June 2014
2 Summary of significant accounting policies (continued)
(x) Earnings per share
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
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.
Annual Improvements 2010–2012 Cycle Annual Improvements to IFRSs 2010–2012 Cycle
(effective for annual periods
beginning on or after 1 January 2014)
This standard sets out amendments to International Financial Reporting Standards (IFRS) and the related bases for
conclusions and guidance made during the International Accounting Standards Board’s Annual Improvements process. These
amendments have not yet been adopted by the AASB.
The following items are addressed by this standard and will be applicable to the Group:
The standard will be adopted by the Group from 1 July 2014.
IFRS 2 - Clarifies the d finition of 've ti g conditions' and 'market condition' and introduces the definition of 'performance
condition' and 'service condition'.
IFRS 8 - Requires entities to disclose factors used to identify the entity's reportable segments when operating segments
have been aggregated. An entity is also required to provide a reconciliation of total reportable segments' asset to the
entity's total assets.
AASB 9 Financial Instruments
(effective for annual periods beginning on or after 1 January 2018)
On 24 July 2014 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.
The AASB is yet to issue the final version of AASB 9. 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.
Certain amended accounting standards and interpretations have been published that are not mandatory for 30 June 2014
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 2012-3 Amendments to Australian Accounting Standards. Offsetting Financial Assets and Financial Liabilities
(effective for annual periods beginning on or after 1 January 2014)
AASB 2012-3
adds application guidance to
AASB 132
Financial Instruments: Presentation to address inconsistencies identified
in applying some of the offsetting criteria of
AASB 132
, including clarifying the meaning of "currently has a legally enforceable
right of set-off" and that some gross settlement systems may be considered equivalent to net settlement. The standard will be
adopted by the Group from 1 July 2014.
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.
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