Notes to the Financial Statements
For the Financial Year Ended 30 June 2007
Note 1. Summary of Accounting Policies
Adoption of new and revised Accounting Standards
In the current year, the consolidated entity has adopted
all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board
(AASB) that are relevant to its operations and effective
for the current annual reporting period. The adoption
of these new and revised Standards and Interpretations
has not resulted to changes in the consolidated entity’s
accounting policies and has not affected the amounts
reported in the current or prior years, nor on the
calculation of basic and diluted earnings per share.
At the date of authorisation of the financial report, the
following Standards and Interpretations were in issue
but not yet effective:
•
•
•
•
AASB 7 “Financial Instruments: Disclosures” and
consequential amendments to other accounting
standards resulting from its issue
AASB 101 “Presentation of Financial Statements”
— revised standard
Interpretation 10 “Interim Financial Reporting
and Impairment”
AASB 8 “Operating Segments” and
consequential amendments to other accounting
standards resulting from its issue
Effective for annual reporting periods beginning on or
after 1 January 2007
Effective for annual reporting periods beginning on or
after 1 January 2007
Effective for annual reporting periods beginning on or
after 1 November 2006
Effective for annual reporting periods beginning on or
after 1 January 2009
•
•
2007-4 “Amendments to Australian Standards
arising from ED 151 and Other Amendments”
Interpretation 11 “Group and Treasury Share
Transactions” and consequential amendments
to other accounting standards resulting from
its issue
Effective for annual reporting periods beginning on or
after 1 July 2007
Effective for annual reporting periods beginning on or
after 1 March 2007
• Interpretation 12 “Service Concession
Arrangements” and consequential amendments
to other accounting standards resulting from
its issue
Effective for annual reporting periods beginning on or
after 1 January 2008
The Directors anticipate that the adoption of these
Standards and Interpretations in future periods will
have no material financial impact on the financial
statements of the Company or the consolidated entity.
These Standards and Interpretations will be first
applied in the financial report of the consolidated entity
that relates to the annual reporting period beginning
after the effective date of each pronouncement.
The AASB released AASB 2005-4 “Amendments
to Australian Accounting Standards” in June 2005.
AASB 2005–4 amends AASB 139 “Financial
Instruments: Recognition and Measurement“ by
limiting the ability of entities to designate any financial
asset or liability as ‘at fair value through profit or loss’.
The application of AASB 8 “Operating Segments”
will not affect any of the amounts recognised in the
financial statements, but may change the disclosures
presently made in relation to the consolidated entity’s
segment reporting.
As the entity does not engage in any public-private
service concession arrangements, Interpretation
12 “Service Concession Arrangements” will have
no impact on the financial statements.
These Standards and Interpretations will be first
applied in the financial report of the Company that
relates to the annual reporting period beginning after
the effective date of each pronouncement.
Statement of Compliance
The financial report is a general purpose financial
report which has been prepared in accordance with
the Corporations Act 2001, Accounting Standards
and Interpretations, and complies with other requirements
of the law. Accounting Standards include Australian
equivalents to International Financial Reporting Standards
(‘A-IFRS’). Compliance with the A-IFRS ensures that
the consolidated financial statements and notes of the
consolidated entity comply with International Financial
Reporting Standards (‘IFRS’). The parent entity’s
financial statements and notes also comply with IFRS.
The financial report includes the separate financial
statements of the Company and the consolidated
financial statements of the consolidated entity.
The financial statements were authorised for issue
by the Directors on 27 August 2007.
Basis of Preparation
The financial report has been prepared on the basis
of historical cost, except for the revaluation of certain
non-current assets and financial instruments. Cost is
based on the fair values of the consideration given in
exchange for assets. All amounts are presented in
Australian dollars, unless otherwise noted.
The Company is a company of the kind referred to in
ASIC Class Order 98/0100, dated 10 July 1988, and
in accordance with that Class Order amounts in the
financial report are rounded off to the nearest
thousand dollars, unless otherwise indicated.
Significant Accounting Policies
Accounting policies are selected and applied in a
manner which ensures that the resulting financial
information satisfies the concepts of relevance and
reliability, thereby ensuring that the substance of the
underlying transactions or other events is reported.
The following significant accounting policies have
been adopted in the preparation and presentation
of the financial report:
(a) Cash and Cash Equivalents
Cash comprises cash on hand and cash in banks.
Cash equivalents are short term investments in money
market instruments. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.
(b) Loans and Receivables
Trade receivables, loans and other receivables are
recorded at amortised cost using the effective interest
method less impairment.
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