AASB 17-18 December 2014
Agenda Paper 3.11 (M142)
Cutting the clutter
Review of recent financial report
de-cluttering trends in the ASX 200
October 2014
kpmg.com.au
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
Foreword – Delivering a clearer message
Times have changed. For years, many have seen the financial report as a compliance document, requiring
a significant amount of resources to prepare that is difficult to understand due to technical jargon used and
the abundance of disclosures. This year a number of ASX200 companies have released shorter, de-cluttered
financial reporting that represents a positive step forward in delivering a clearer message.
Corporate reporting is quickly climbing up the board agenda. Boards are trying to do more with less challenging themselves on how to clearly articulate their messages to investors and other stakeholders,
while using their resources effectively.
The ASX Corporate Governance Council has also put the spotlight on this area, recently releasing the third
edition of their principles and recommendations. Principle 4 now states: “Safeguard integrity in corporate
reporting – A listed entity should have formal and rigorous processes that independently verify and safeguard
the integrity of its corporate reporting.” This principle explicitly puts director responsibility in the context of all
corporate reporting.
KPMG Australia has been working closely with a number of companies in helping them cut the clutter from
their financial and other corporate reporting, obtain quick wins in their goal of delivering a clearer message to
the capital markets and in managing stakeholder engagement through this process.
We hope this publication encourages other companies to take up the challenge of producing clearer, decluttered financial and other corporate reports that focus on key performance measures and disclosures.
Whilst for some this may take a “leap of faith”, the outcome should be a better quality financial report that
is more focused on what is important to the reader. Organisations will then be ready to take next steps and
de-clutter the entire corporate reporting portfolio, improve the user experience, reduce reporting costs and
enhance capital allocation.
Bernie Szentirmay
Partner
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 2
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
The Changing Corporate
Reporting Landscape in 2014
Contents
• International Integrated Reporting Framework released
• B20 recommend G20 endorse corporate reporting reform to
underpin more infrastructure investment
• ASX Corporate Governance Principle 4 amended to embrace all
corporate reporting
• Director liability being addressed
• Government asked to look at volume and complexity in corporate
reporting to support voluntary cutting the clutter initiative
• Integrated Reporting Assurance Framework deliberations
kick off globally
Foreword 2
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Introduction4
The principles of Cutting the Clutter 5
Results 6
Practical application 7
Standard setters and regulators9
KPMG – How we can help 10
Appendix 1 – Our methodology
11
Appendix 2 – Example reporting
12
Operating and financial reviews: October 2014 3
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
Introduction – About this report
This report is designed to raise awareness and assist companies that are assessing whether to embrace the
“cutting the clutter” trend in financial reporting, either in isolation or as part of a broader project to improve
the quality of corporate reporting.
A significant shift in Australian corporate reporting has occurred in recent times, taking external reporting
beyond its traditional emphasis on compliance:
•
•
International and local accounting bodies are talking about de-cluttering and the need to re-focus disclosures in financial reports
ASIC released RG 247 Effective disclosure in an operating and financial review (OFR) in 2013, and have challenged organisations to better explain business models, operations, risks, strategies, financial results and future prospects
•
•
G100 has Integrated Reporting as the number one item on its agenda for 2014
ASX Corporate Governance Council’s amendments to principle 4 reflects the reality that financial reporting is no longer the primary corporate reporting tool underpinning capital market analysis and capital allocation decisions
• Companies in the UK, Asia and now in Australia are releasing de-cluttered reports to enable clearer delivery of key financial messages. Cutting the clutter is now being actively embraced by many ASX 200 companies.
For some organisations these changes will prompt them to embark on a journey of corporate reporting
reform. As the journey progresses, it should result in more meaningful corporate reporting for report users,
less work for report preparers and better information for business and investment decision making. In short,
it should help to deliver more transparency at less cost.
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 4
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
The principles of Cutting the Clutter in
financial reports are simple:
Remove immaterial or irrelevant financial report disclosures that
have built up over time
Re-order and re-label accounting policies and detailed notes so that
they better reflect the key financial measures and focus areas of
most relevance
Re-write technical wording into plain English, whilst still fully
complying with relevant accounting standard and regulatory
requirements.
We have looked at the emerging trend of companies cutting the clutter within their financial reports
over the most recent reporting season, focussing on the ASX 200. This publication highlights entities
that have reduced and/or reconfigured content, using company specific examples.
Our review revealed the following results:
• Whilst new accounting standards have increased disclosure, some companies have been able to
“buck the trend”, reducing their total financial report page count compared to the prior year
• 50% of organisations have financial reports that are shorter in length than the prior period
• 37% of organisations were able to reduce the number of notes to the financial statements
compared to the prior period
• 19% of organisations have re-ordered their flow of notes to the financial statements, and
10% have used subheadings and re-grouped notes to focus attention on specific items
of disclosure.
These results indicate that many entities in the ASX 200 have started to embrace de-cluttering
the annual financial report. Refer to Appendix 1 for a summary of individual entity details, and
Appendix 2 for a selection of company specific examples of financial report de-cluttering.
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 5
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
Results – Organisations are starting to cut the clutter
Remove
No change
10%
REDUCED NUMBER OF PAGES
89 organisations reduced their total page numbers, with
46 organisations reducing the number of pages by more than
5,
Increase
40%
despite the suite of new accounting standards becoming effective
for periods beginning on or after 1 January 2013 which added to
disclosure requirements.
Re-label & Reorder
No change
10%
No change
Decrease
No
change
10%
10%50%
Decrease
50%
Increase
40%
NoDecrease
change
50%
31%
Decrease
50%
No change
31%
Increase
40%
Increase
40%
Increase
32%
Decrease
50%
Yes
10%
Yes
MAKING ACCOUNTS EASIER TO FOLLOW
10%
18 companies have grouped notes to Increase
the financial statements
40% Operating Assets and
into categories, such as Result for the year,
Liabilities, Capital Management and Financing, and other notes.
In addition, 33 companies re-ordered their notes compared to the
prior year.
No change
31%
Decrease
37%
Yes
10%
Yes
10%
Increase
32%
Increase
32%
Increase
32%
Increase
32%
No
90%
Yes
10%
No
90%
No
90%
No
90%
Yes
19%
Yes
19%
Yes
HAS THE ORDER OF19%
THE NOTES
TO THE FINANCIAL STATEMENTS
CHANGED FROM PRIOR YEAR?
No
81%
No
90%
No
81%
No
No 81%
90%
No
81%
No
90%
Yes
19%
Yes
10%
WAS THERE ANY EVIDENCE TO SUGGEST THAT THE
ENTITY HAD TRIED TO SIMPLIFY THE LANGUAGE USED
IN FINANCIAL REPORT DISCLOSURES?
Most common simplification observed was in relation to
No
accounting policy wording.
90%
Yes
19%
Yes
10%
DID THE FINANCIAL
Yes REPORT
10%
USE NEW SUB-HEADINGS
TO
GROUP NOTES TOGETHER?
Yes
10%
No
90%
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Decrease
37%
DE-CLUTTERING
NOTES
Decrease
65 organisations
reduced the number of
37%
notes, with 45 organisations reducing
the number of notes by more than 2.
No change
10%
Yes
10%
Rewrite
No change
31%
Decrease
37%
No change
Decrease
31%
37%
No
81%
* Note: Numbers and percentages exclude entities that have
not yet released 2014 financial reports and certain other
entities where data was not available
No
90%
Operating and financial reviews: October 2014 6
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical application – the pathway
to successful de-cluttering
Practical
application
Remove immaterial
disclosures
Standard setters
and regulators
Move accounting
policies and/or
simplify wording
KPMG
How we can help
Group notes
& re-order
Financial report
The results of our analysis indicate that de-cluttering the financial
report is a scalable activity with application so far by Australian ASX
200 listed companies varying from simply removing immaterial
disclosures, to more extensive re-ordering and grouping of notes and
including plain English explanations.
Improving corporate reporting is a journey and is likely to be completed
in several stages, occurring over a number of reporting periods. The
speed at which change is achieved will depend on the driver of the
change, i.e., industry best practice, regulatory drivers such as RG247
and ASX Corporate Governance Principles and Recommendations
which have mandatory commencement dates, the appetite of the board
and senior management, the take-up of market-driven initiatives such as
Integrated Reporting <IR>, and the capacity within the organisation to
implement change.
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Add additional
information and
plain English
explanations
Potential timeline and drivers of change:
2014
Key Driver: RG247
2015
Key Driver: ASX Corporate Governance Principles and Recommendations
(third edition)
Corporate reporting
Successful de-cluttering does not stop with the financial report. While
cutting the clutter can be a logical first step for many companies in
improving the clarity of reporting, the financial report only tells a small
part of the story. To maximise the benefits of de-cluttering, companies
should consider if their annual report and wider corporate reporting
portfolio could also benefit from being redesigned and streamlined to
more clearly and concisely communicate how they create value in the
short, medium and long term.
Appendix
• Further enhancements to the OFR, improving disclosure around strategy and
prospects for future financial years, including material business risks
• Directors are now responsible for the integrity of all corporate reporting under
Principle 4
• Increased disclosure of economic, environmental and social sustainability risks
and how they are managed in the Corporate Governance Statement
2016
Potential Driver:
2017+
Potential Driver:
• Increase pressure from market leaders and early adopters of the International
Integrated Reporting <IR>Framework
• Endorsement of the International Integrated Reporting <IR> Framework
• Development of a ‘flagship’ report
Operating and financial reviews: October 2014 7
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
Practical application – the pathway
to successful de-cluttering
CFOs should ask themselves …
1. Are our financial reports cluttered with
technical jargon that investors either don’t
need to know or don’t understand?
2. Are our financial reports structured in a way
that focuses investors on what I think they
should focus on?
3. Are our financial reports easy to read?
Do they include immaterial, redundant or
boiler-plate disclosures that don’t add
anything?
4. Are our financial reports longer than they
need to be?
5. Do we want to try and save costs in
preparing our financial reports?
Achieve quick wins by …
• Identifying accounting policies that do not
relate to the prior or current year financial
performance or position and remove
• Move accounting policies to the related
financial statement note, e.g. revenue
accounting policy with the revenue note,
to improve clarity
• Order notes in level of importance to
investors – important information should be
read first
Companies who have undertaken this process
highlight the need for strong stakeholder
engagement across the finance team, investor
relations, audit committee and relevant
external users in order to gain support and
manage expectations.
• Group like notes together – presenting a
holistic view of key financial reporting focus
areas, e.g. tax expense with deferred
tax balances
Whilst for some it may take a ‘leap of faith’ to
embrace the de-cluttering process, the end
product should be a clearer and more focused
document that will better tell your story.
• Reword boiler-plate disclosure so that
it actually describes your business
circumstances with minimal technical jargon
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Keys to success are …
Operating and financial reviews: October 2014 8
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
Standard setters and regulators –
supporting de-cluttered reports
Standard setters and regulators alike are also discussing the
need to improve the quality of financial reports by focussing
on disclosures.
“ASIC pay particular attention to
whether retail investors are being
provided with clear, concise and
effective disclosure that satisfies
their information needs”2
“Removal of disclosures that are
immaterial will enable users to
focus on the key information about
the performance, position and
cash flows of the entity.”5
“The Disclosure Initiative is focused on ensuring that financial reports are instruments of
communication and not simply compliance documents. These proposals form a small part
of our efforts to encourage preparers, auditors and regulators away from a ticking-the-box
mentality towards disclosures.”
Hans Hoogervorst, IASB Chairman – announcing the IASB Disclosure Initiative proposal
The IASB feel the need for disclosure reform and to:
“Clarify the materiality requirements”and put “emphasis on the
potentially detrimental effect of overwhelming useful information with
immaterial disclosure”, and “clarify that entities have flexibility as to the
order in which they present the notes”1
“The AASB strongly supports the
Disclosure Initiative Project”3 and
recommends using ‘plain English’
expressions in IFRSs to distinguish
information displayed on the
face of a financial statement and
information displayed in
the notes”3
The FRC “agreed that preparers,
auditors and directors need to
address this issue in light of
clarifications from the standard
setters and ASIC, recognising that
too much irrelevant information is
a distraction to understanding the
financial report”4
Sources:
1 IASB Press Release, 25 March 2014
2 ASIC Regulatory Guide 175.
3 AASB’s comment letter on IASB Exposure Draft ED/2014/1 Disclosure Initiative
4 Financial Reporting Council Minutes – 11 April 2014
5 The Group of 100’s comment letter on IASB Exposure Draft ED/2014/1 Disclosure Initiative
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 9
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
KPMG – How we can help
KPMG can help you streamline your financial reports in a number of ways by providing:
•
•
•
•
•
thought leadership and examples of de-cluttered disclosures
feedback on your current financial reports and how you compare to benchmark companies
management and Audit Committees with insight on the best way to approach the de-cluttering process
assistance in identifying quick wins using our experience from working with clients who have undertaken a de-cluttering process
assistance in drafting de-cluttered financial reports and participating in project workshops and discussions
The contacts at KPMG in connection with this publication are:
Bernie Szentirmay
Partner
T: +61 3 9288 5423
M: +61 422 005 780
bszentirmay@kpmg.com.au
Michael Bray
Partner
T: +61 3 9288 5720
M: +61 417 257 226
mbray@kpmg.com.au
Emma Roche
Senior Manager
T: +61 2 9455 9257
M:+61 407 651 772
eroche1@kpmg.com.au
Simon Dubois
Senior Manager
T: +61 3 9288 6927
M:+61 409 302 275
sdubois@kpmg.com.au
The contacts at KPMG in connection with Better Business Reporting are:
Nick Ridehalgh
Partner
T: +61 2 9455 9312
M: +61 417 661 927
nridehalgh@kpmg.com.au
Simone Schlitter
Director
T: +61 2 9335 8511
M:+61 400 469 628
sschlitter@kpmg.com.au
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Kylie Dumble
Manager
T: +61 2 9335 7292
M:+61 426 966 911
kdumble@kpmg.com.au
Operating and financial reviews: October 2014 10
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
KPMG
How we can help
Appendix
Appendix 1 – Our methodology
In preparing this report we have reviewed the most recent annual financial reports of the ASX 200 companies as at 22 October 2014.* The financial reports subject to our
review covered the annual reporting periods from 31 December 2013 to 31 August 2014.
The following table shows the organisations for which we could see evidence of applying the de-cluttering principles. In addition, we noted that a number of organisations
also simplified wording in their note disclosures.
Ticker
Company
Notes
re-ordered?
Notes
reduced?
Page
numbers
reduced?
AGK
AGL Energy Limited
AGO
Atlas Iron Limited
AHE
Automotive Holdings Group Limited
AMC
Amcor Limited
√
ANN
Ansell Limited
√
√
√
Aveo Group
ARI
Arrium Limited
ASX
ASX Limited
√
√
AWC
Alumina Limited
√
BCI
BC Iron Limited
BEN
Bendigo and Adelaide Bank
BGA
Bega Cheese Limited
Beach Energy Limited
CAB
Cabcharge Australia Limited
CBA
Commonwealth Bank of Australia
COH
Cochlear Limited
CPU
CSL
Company
√
HVN
Harvey Norman Holdings Limited
√
IAG
Insurance Australia Group Limited
IFL
IOOF Holdings Limited
IGO
Independence Group NL
IIN
Iinet Limited
√
AOG
BPT
Ticker
√
√
Notes
re-ordered
Notes
reduced?
Page
numbers
reduced?
Ticker
Company
√
SGM
Sims Metal Management Limited
√
√
√
SGP
Stockland
√
SGT
√
√
Notes
reduced?
√
√
√
Singapore Telecommunications
Limited
√
√
SHL
Sonic Healthcare Limited
√
√
SKT
SKY Network Television Limited
√
SPK
Spark New Zealand Limited
SWM
Seven West Media Limited
√
ILU
Iluka Resources Limited
√
√
IOF
Investa Office Fund
√
√
LLC
Lend Lease Group
√
√
LNG
Liquefied Natural Gas Limited
√
SXY
Senex Energy limited
√
LYC
Lynas Corporation Limited
√
TAH
Tabcorp Holdings Limited
√
√
√
MFG
Magellan Financial Group Limited
√
TLC
Transurban Group
√
√
√
MGR
MIRVAC Group
TEN
Ten Network Holdings Limited
√
TGR
Tassal Group Limited
√
TME
Trade Me Group Limited
√
√
√
√
MGX
Mount Gibson Iron Limited
√
MML
Medusa Mining Limited
√
MSB
Mesoblast Limited
√
√
TOL
Toll Holdings Limited
√
MTS
Metcash Limited
√
√
TPI
Transpacific Industries Group Ltd
Computershare Limited
√
MTU
M2 Group LTD
TPM
CSL Limited
√
NVT
Navitas Limited
√
DUE
Duet Group
Orora Limited
EGP
Echo Entertainment Group Limited
√
√
PBG
Pacific Brands Limited
FBU
Fletcher Building Limited
√
√
PDN
Paladin Energy LTD
FDC
Federation Centres
√
√
√
QAN
Qantas Airways Limited
FLT
Flight Centre Limited
√
√
REA
REA Group Ltd
FMG
Fortescue Metals Group Ltd
√
√
RFG
Retail Food Group Limited
FXJ
Fairfax Media Limited
RIO
Rio Tinto Limited
√
GEM
G8 Education Limited
√
RRL
Regis Resources Limited
√
√
GMG
Goodman Group
GWA
GWA Group Limited
√
SDF
Steadfast Group Limited
√
√
SEK
Seek Limited
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
TPG Telecom Limited
√
√
TSE
Transfield Services Limited
√
√
TTS
Tatts Group Limited
√
VED
Veda Group Limited
√
√
VRL
Village Roadshow Limited
√
WES
Wesfarmers Limited
WHC
Whitehaven Coal Limited
√
√
√
√
√
√
ORA
√
√
√
√
Page
numbers
reduced?
√
√
√
Notes
re-ordered?
√
√
√
√
√
√
√
√
√
* Excludes entities that have not yet released 2014 financial reports and certain other entities where data was not available, for example; no prior year comparatives
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 11
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Appendix 2 – Example Reporting
Contents
Consolidated Statement of Profit or Loss
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
1
Summary of significant accounting policies
2
Significant accounting judgements, estimates and assumptions
3
Segment information
4
Revenue
5
Expenses
6
Finance costs
7
Income tax
8
Dividends
9
Trade and other receivables
10
Inventories
11
Other financial assets
12
Other assets
13
Investments in associates and joint ventures
14
Exploration and evaluation assets
15
Oil and gas assets
16
Property, plant and equipment
17
Intangible assets
18
Assets classified as held for sale
19
Trade and other payables
20
Borrowings
21
Provisions
22
Other financial liabilities
23
Other liabilities
24
Issued capital
25
Reserves
26
Retained earnings
27
Earnings per share
28
Commitments
29
Contingent liabilities and contingent assets
30
Remuneration of auditors
31
Subsidiaries
32
Business combinations
33
Joint operations
34
Deeds of cross guarantee
35
Defined benefit superannuation plans
36
Share-based payment plans
37
Related party disclosures
38
Cash and cash equivalents
39
Financial instruments
40
Parent entity
41
Subsequent events
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
AGL’s 2014 financial report is
29 pages shorter and contains
15 less notes compared to the
2013 financial report.
KPMG
How we can help
Appendix
Remove
AGL Financial Report 2014
Example 1 – AGL
Standard setters
and regulators
AGL Financial Report 2013
Page
3
4
5
6
7
8
21
23
28
28
28
29
31
32
33
33
34
34
35
36
36
38
40
41
41
42
43
43
44
45
45
46
46
47
47
48
50
51
52
54
57
62
63
64
73
74
75
76
77
Source: ASX Release – AGL Energy Limited Financial Reports for the year ended 30 June 2014
Date: 20 August 2014
Contents
Page
Consolidated Statement of Profit or Loss
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
1 - Summary of significant accounting policies
2 - Significant accounting judgements, estimates and assumptions
3 - Correction of unbilled distribution liability
4 - Segment information
5 - Revenue
6 - Other income
7 - Expenses
8 - Net financing costs
9 - Profit before income tax
10 - Income tax
11 - Dividends
12 - Cash and cash equivalents
13 - Trade and other receivables (current)
14 - Inventories (current)
15 - Other financial assets (current)
16 - Other assets (current)
17 - Trade and other receivables (non-current)
18 - Inventories (non-current)
19 - Investments accounted for using the equity method
20 - Exploration and evaluation assets
21 - Oil and gas assets
22 - Property, plant and equipment
23 - Intangible assets
24 - Other financial assets (non-current)
25 - Other assets (non-current)
26 - Trade and other payables (current)
27 - Borrowings (current)
28 - Provisions (current)
29 - Other financial liabilities (current)
30 - Other liabilities (current)
31 - Borrowings (non-current)
32 - Provisions (non-current)
33 - Other financial liabilities (non-current)
34 - Other liabilities (non-current)
35 - Issued capital
36 - Reserves
37 - Retained earnings
38 - Earnings per share (EPS)
39 - Capital and other expenditure commitments
40 - Lease commitments
41 - Contingent liabilities and contingent assets
42 - Remuneration of auditors
43 - Subsidiaries
44 - Acquisition of subsidiaries and businesses
45 - Disposal of subsidiaries
46 - Jointly controlled operations and assets
47 - Deed of cross guarantee
48 - Key management personnel disclosures
49 - Defined benefit superannuation plans
50 - Share-based payment plans
51 - Related party disclosures
52 - Cash flow information
53 - Financial instruments
54 - Subsequent events
55 - Parent Entity information
56 - Net tangible asset backing
Directors' Declaration
Auditor's Independence Declaration
Independent Auditor's Report
3
4
5
6
7
8
25
26
27
32
32
32
33
33
35
38
38
39
40
40
40
40
40
41
43
44
45
47
49
49
49
49
50
50
50
50
52
53
53
54
55
56
56
57
58
59
59
60
62
65
66
67
69
75
78
83
85
86
101
102
103
104
105
106
AGL Financial Report 2013
2
Source: ASX Release – AGL Energy Limited Financial Report
Date: 28 August 2013
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
AGL Financial Report 2014
Operating and financial reviews: October 2014 12
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
Example 2 – Transfield
Transfield have grouped the notes
to the financial statements into
specific categories, identified
immaterial notes for removal and
have also moved the summary of
significant accounting policies to
be the last note within the financial
report resulting in a shortening of
their financial report by 28 pages.
KPMG
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Appendix
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 30 June 2014
BASIS OF PREPARATION
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR YEAR ENDED 30 JUNE 2013
Page
number
NOTES
These consolidated financial statements are general purpose financial statements. They have been prepared in accordance with
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations
Act 2001. They also comply with IFRS as issued by the International Accounting Standards Board.
Note 1. Summary of significant accounting policies
Note 2. Financial, capital and other risk management
121
Details of the Group’s accounting policies, including changes during the year, are included in the following notes:
Note 3. Critical accounting estimates and judgements
127
•
Change in Accounting policies and presentation of comparatives ..........................................................................................................................114
Note 4. Operating segments
128
•
Summary of significant accounting policies .......................................................................................................................................................................116
Note 5. Revenue
132
Note 6. Impairment
133
NOTE INDEX
103
Note 7. Expenses
133
Note 8. Income taxes
134
Note 9. Cash and cash equivalents
135
GROUP PERFORMANCE
TAXATION
Operating segments ..................................................................................80
Income taxes ................................................................................................102
Note 10. Trade and other receivables
135
Revenue ........................................................................................................... 84
Deferred tax assets....................................................................................103
Note 11. Inventories
136
Expenses ......................................................................................................... 84
Deferred tax liabilities ..............................................................................103
Note 12. Prepayments and other assets
136
Discontinued operations .......................................................................... 85
NET DEBT
Note 13. Other financial assets
136
Cash and cash equivalents .................................................................... 104
Note 14. Property, plant and equipment
136
Reconciliation of operating profit after income tax to net cash
inflow from operating activities .......................................................... 104
Note 15. Deferred tax assets
137
Note 16. Intangible assets
139
Loans and borrowings .............................................................................105
Note 17. Trade and other payables
142
EQUITY
Note 18. Loans and borrowings
142
Note 19. Employee benefits
143
Earnings / (loss) per share ...................................................................... 86
Subsequent events ..................................................................................... 86
RISK MANAGEMENT
Critical accounting estimates and judgments .................................87
Financial, capital and other risk management................................ 88
Contingent assets and liabilities ............................................................ 91
Contributed equity ................................................................................... 106
Commitments for expenditure .............................................................. 92
Share-based payments ........................................................................... 106
Transfield Services Limited 69 000 484 417
WORKING CAPITAL
Dividends .......................................................................................................108
Trade and other receivables ................................................................... 93
OTHER INFORMATION
Inventories ...................................................................................................... 94
Note 20. Derivatives
143
Note 21. Other provisions
144
Note 22. Deferred tax liabilities
146
Note 23. Contributed equity
147
Related party transactions .................................................................... 109
Note 24. Non-controlling interest
148
Trade and other payables ........................................................................ 94
Remuneration of auditors ........................................................................110
Note 25. Dividends
149
CAPITAL EMPLOYED
GROUP STRUCTURE
Note 26. Related party transactions
149
Employee benefits ...................................................................................... 95
Subsidiaries ....................................................................................................110
Note 27. Key management personnel
152
Other provisions .......................................................................................... 95
Deed of cross guarantee ........................................................................... 111
Note 28. Business combinations
156
Interests in joint ventures......................................................................... 96
Parent entity financial information ...................................................... 113
Note 29. Investment in associate
158
Other financial assets ................................................................................ 99
Note 30. Interests in joint ventures and partnerships
159
Property, plant and equipment ............................................................. 99
Note 31. Reconciliation of operating profit after income tax to net cash inflow from operating activities
161
Intangible assets ........................................................................................ 100
Note 32. Earnings / (loss) per share
162
Note 33. Remuneration of auditors
163
Note 34. Events occurring after statement of financial position date
163
ANNUAL REPORT 2014
Source: Transfield Annual Report 2014
Date: 3 October 2014
Note 35. Contingent assets and liabilities
163
Note 36. Commitments for expenditure
165
Note 37. Share based payments
166
Note 38. Deed of cross guarantee
169
Note 39. Parent entity financial information
171
ANNUAL REPORT
Source: Transfield Annual Report 2013
Date: 23 September 2013
Transfield Services Annual Report 2014 |79
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 13
102 TRANSFIELD SERVICES 2013
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
Example 3 – Flight Centre
notes to the FinanCiaL statements
notes to the
FinanCial statements
1.
Presentation of transactions recognised in other comprehensive income
From 1 July 2012, FLT applied amendments to AASB 101 Presentation of
Financial Statements outlined in AASB 2011–9 Amendments to Australian
Accounting Standards – Presentation of Items of Other Comprehensive Income.
The change in accounting policy only relates to disclosures and has no impact on
consolidated earnings per share or net income. The changes have been applied
retrospectively and require the group to separately present those items of other
comprehensive income that may be reclassified to profit or loss in the future
from those that will never be reclassified to profit and loss. These changes are
included in the statement of comprehensive income.
significant matters in the current reporting period ...........................................................................................................................34
B
the dawn of a
golden era in
world travel
Cheaper airfares
more airline choice
greater comfort
less flying time
C
d
e
annual report 2013/14
summary oF signiFiCant aCCounting PoliCies
The principal accounting policies adopted in the consolidated financial report’s
preparation are set out below. These policies have been consistently applied to
all the years presented, except as stated below. The financial report is for the
consolidated entity consisting of Flight Centre Limited (FLT) and its subsidiaries.
a
FinanCiaL overview .....................................................35
F
other inFormation ......................................................62
Presentation of expenses in consolidated income statement
For the half year ended 31 December 2012 and going forward, the group has
voluntarily changed the presentation of expenses in the consolidated income
statement from function to nature. The group determined the further disclosure
of the nature of the expenses provided more relevant information to the financial
statements’ users.
A1
Segment information ...........................................................35
F1
Other expenses ................................................................... 62
A2
Revenue .............................................................................. 39
F2
Earnings per share ..............................................................63
A3
Other income ......................................................................40
F3
Trade and other receivables .................................................64
A4
Expenses ............................................................................40
F4
Property, plant and equipment .............................................66
A5
Intangible assets ................................................................. 41
F5
Trade and other payables ..................................................... 67
A6
Business combinations ........................................................43
F6
Financial liabilities at fair value through P&L..........................68
F7
Provisions ........................................................................... 69
Cash management .......................................................45
F8
Reserves ............................................................................. 70
B1
Cash and cash equivalents...................................................45
F9
Tax ..................................................................................... 71
B2
Available-for-sale (AFS) financial assets ...............................46
F10 Auditor’s remuneration......................................................... 73
B3
Cash & AFS - financial risk management ..............................46
B4
Borrowings .......................................................................... 47
B5
Ratios .................................................................................48
G1
Subsidiaries ........................................................................ 74
B6
Dividends ............................................................................ 49
G2
Deed of cross guarantee ...................................................... 74
B7
Capital expenditure ..............................................................50
G3
Parent entity financial information.........................................77
FinanCiaL risk management .....................................51
g
h
H1
Commitments...................................................................... 79
C2
Derivative financial instruments ............................................54
H2
Contingencies ..................................................................... 79
C3
Other financial assets ..........................................................54
H3
Events occurring after the end of the reporting period ........... 79
Key management personnel .................................................55
D2
Business ownership scheme (BOS) ......................................55
D3
Share-based payments ........................................................56
D4
Contributed equity ...............................................................58
reLated parties ...........................................................59
E1
E2
Investments accounted for using the equity method .............. 59
Related party transactions ...................................................60
The adjustment is shown in the consolidated income statement and the
comparative amounts in the prior period have also been adjusted to show
the nature of the expense. The amount of expenses recorded in each period
presented has not changed, only the presentation has changed.
(a) Basis of preparation
This general purpose financial report has been prepared in accordance with
Australian Accounting Standards and interpretations issued by the Australian
Accounting Standards Board and the Corporations Act 2001. FLT is a for–profit
entity for the purpose of preparing the financial statements.
unreCognised items ....................................................79
Financial risk management................................................... 51
D1
The prior year expense presentation by function cannot be readily mapped into
the nature as presented currently for the prior year. As such, the detail of the
reclassifications has not been disclosed.
group struCture ......................................................... 74
C1
reward and reCognition ...........................................55
Appendix
Re-label & Reorder
Flight Centre have grouped the
notes to the financial statements
into specific categories. In addition,
they provide an introduction to
each section and include specific
accounting policies in the note
dealing with the related balance.
Etihad’s The Residence
KPMG
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i
summarY oF aCCounting poLiCies............................80
B
caSh ManageMent
Cash and cash equivalents
B2
Available-for-sale (AFS) financial assets
B3
Cash & AFS - financial risk management
B4
Borrowings
B5
Ratios
B6
Dividends
B7
Capital expenditure
The consolidated financial statements incorporate the assets and liabilities of all
FLT subsidiaries at 30 June 2013 and the subsidiaries’ results for the year then
ended. FLT and its subsidiaries together are referred to in this financial report as
the group or the consolidated entity.
Subsidiaries are entities (including special purpose entities) over which the group
has the power to govern the financial and operating policies. The existence and
effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to
the group and are deconsolidated when that control ceases.
The acquisition method of accounting is used to account for the group’s
acquisition of subsidiaries (refer to note 1(g)).
Intercompany transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of the transferred asset’s impairment.
Subsidiaries’ accounting policies have been changed, where necessary, to ensure
consistency with the group’s policies.
Non–controlling interests in the results and equity of subsidiaries are shown
separately in the consolidated balance sheet, income statement, statement of
comprehensive income and statement of changes in equity respectively.
Investments in subsidiaries are accounted for at cost in FLT’s individual
financial statements.
Associates are all entities over which the group has significant influence but not
control or joint control. Investments in associates are accounted for by the parent
using the cost method and in the consolidated financial statements using the
equity method of accounting, after initially being recognised at cost. The group’s
investment in associates includes goodwill (net of any accumulated impairment
loss) identified on acquisition (refer to note 19).
The group has not elected to apply any pronouncements before their operative
date in the annual reporting period beginning 1 July 2012.
Historical cost convention
These financial statements have been prepared under the historical cost
convention, as modified by the revaluation of available‑for‑sale financial assets
and financial assets and liabilities (including derivative financial instruments) at
fair value through profit and loss.
• Gearing ratio
(i) Subsidiaries
(ii) Associates
None of the new standards and amendments of standards that are mandatory
for the first time for the financial year beginning 1 July 2012 affected any of the
amounts recognised in the current period or any prior period and are not likely to
affect future periods.
• Net debt
(B) Principles of consolidation
The group’s consolidated financial statements also comply with International
Financial Reporting Standards (IFRS), as issued by the International Accounting
Standards Board (IASB).
Early adoption of standards
B1
The preparation of financial statements in conformity with Australian Accounting
Standards requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment when applying the group’s
accounting policies. The areas involving a higher degree of judgment or
complexity or areas where assumptions and estimates are significant to the
financial statements are disclosed in note 2.
Compliance with IFRS
New & amended standards adopted by the group
FLT has a focus on maintaining a strong balance sheet through increasing cash and investments and reducing debt. The strategy also considers the group’s
expenditure, growth and acquisition requirements and the desire to return dividends to shareholders.
Critical accounting estimates
The group’s share of its associates’ post‑acquisition profits or losses is
recognised in the income statement and its share of post‑acquisition movements
in reserves is recognised in other comprehensive income reserves. The
cumulative post‑acquisition movements are adjusted against the investments’
carrying amounts. Dividends receivable from associates are recognised in the
parent entity’s income statement. In the consolidated financial statements, they
reduce the investments’ carrying amounts.
When the group’s share of losses in an associate equals or exceeds its interest
in the associate, including any other unsecured long–term receivables, the group
does not recognise further losses, unless it has incurred obligations or made
payments on the associate’s behalf.
Unrealised gains on transactions between the group and its associates are
40
ABN 25 003 377 188
B1 caSh and caSh equiVaLentS
FLIGHT CENTRE TRAVEL GROUP LIMITED annuaL report 13/14
Source: Flight Centre Travel Group Limited
Annual Report 13/14
Date: 27 August 2014
Accounting policy
33
Client cash represents amounts from customers held before release to service and product suppliers.
Additional information on cash accounting policies is included in note I(j).
General cash at bank and on hand
Client cash
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
2014
$’000
2013
$’000
476,042
433,799
785,640
793,220
1,261,682
1,227,019
For the purpose of the consolidated statement of cash flows, cash and cash equivalents is equal to the balance as disclosed above.
reconciliation of profit after tax to net cash inflow from operating activities
Profit for the year
206,918
246,082
Source: Flight Centre Limited Annual Report 12/13
Date: 27 September 2013
Operating and financial reviews: October 2014 14
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
KPMG
How we can help
Appendix
Remove / Re-label & Reorder
Iluka Resources Limited
Notes to the consolidated financial statements
31 December 2012
Example 4 –
Iluka Resources
Contents of the notes to the financial statements
Page
Basis of preparation
1. Reporting entity
2. Basis of preparation
3. Critical accounting estimates and judgements
The Iluka Resources December
2013 financial report:
•
•
•
Utilises subheadings to group notes together
Does not have a separate summary of significant accounting policies note – now included within
associated notes
is 10 pages shorter compared to the December 2012 report
Annual Report
2013
/
/
/
96
96
96
97
Performance for the year
4. Segment information
5. Revenue
6. Expenses
7. Earnings per share
8. Income tax
9. Dividends
10. Reconciliation of profit after income tax to net cash inflow from operating activities
99
99
101
102
103
104
105
105
Operating assets and liabilities
11. Receivables
12. Inventories
13. Property, plant and equipment
14. Payables
15. Provisions
106
106
106
107
109
110
Capital structure and finance costs
16. Net debt and finance costs
17. Financial risk management
18. Contributed equity
112
112
114
116
Other notes
19. Events occurring after the reporting period
20. Other income
21. Remuneration of auditors
22. Deferred tax
23. Reserves and retained earnings
24. Share-based payments
25. Commitments
26. Retirement benefit obligations
27. Key Management Personnel
28. Controlled entities and deed of cross guarantee
29. Parent entity financial information
30. Contingent liabilities
31. Related party transactions
32. Other accounting policy
33. New accounting standards and interpretations
117
117
117
117
118
119
120
121
122
123
125
127
128
128
128
129
Page
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Summary of significant accounting policies
Critical accounting estimates and judgements
Financial risk management
Segment information
Revenue
Other income
Expenses
Income tax
Cash and cash equivalents
Receivables
Inventories
Property, plant and equipment
Intangible assets
Deferred tax
Payables
Interest-bearing liabilities
Provisions
Contributed equity
Reserves
Dividends
Key Management Personnel
Remuneration of auditors
Retirement benefit obligations
Contingent liabilities
Commitments
Controlled entities and deed of cross guarantee
Reconciliation of profit after income tax to net cash inflow from operating activities
Earnings per share
Share-based payments
Parent entity financial information
Related party transactions
Events occurring after the reporting period
50
60
61
64
66
66
67
68
69
69
69
70
71
71
72
73
75
76
77
78
79
81
82
85
86
87
89
89
90
91
92
92
/
FOCUS ON SHAREHOLDER RETURNS THROUGH THE CYCLE FLEX OPERATIONS IN LINE WITH
MARKET DEMAND CONTINUE MARKET DEVELOPMENT MAINTAIN STRONG BALANCE SHEET
PRESERVE AND ADVANCE MINERAL SANDS GROWTH OPPORTUNITIES CONTINUE TO EVALUATE/
PURSUE CORPORATE GROWTH OPPORTUNITIES ACT COUNTER-CYCLICALLY WHERE APPROPRIATE
/
Contents of the notes to the financial statements
/
Source: ASX release: Iluka Annual Report 2013
Date: 25 March 2014
Source: ASX release: Iluka Annual Report 2012 Date: 28 March 2013
CREATE AND DELIVER VALUE FOR SHAREHOLDERS
49
95
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Operating and financial reviews: October 2014 15
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
Example 5 – IOOF
The IOOF 2014 financial report
is 13 pages shorter compared
to the 2013 report and utilises
subheadings to group like notes
together.
Directors' Report
Remuneration Report
Directors' Declaration
Lead Auditor's Independence Declaration
Independent Auditor's Review Report to the Members
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
IOOF HOLDINGS LTD
Annual Financial Report for the year ended 30 June 2013
1-1 Risk management
1-2 Capital risk management
1-3 Financial Instruments
Section 2 - Results for the year
2-1
2-2
2-3
2-4
2-5
2-6
2-7
Operating segments
Revenue
Expenses
Net cash provided by operating activities
Income taxes
Dividends
Earnings per share
Section 3 - Capital management and financing
3-1
3-2
3-3
3-4
Borrowings
Share capital
Capital commitments and contingencies
Reserves
Section 4 - Operating assets and liabilities
4-1
4-2
4-3
4-4
4-5
Acquisitions
Equity-accounted investees
Intangible assets (other than goodwill)
Goodwill
Provisions
Section 5 - Statutory funds
IOOF Holdings Ltd
ABN 49 100 103 722
30 June 2014
Annual Financial Report
Page
5-1
5-2
5-3
5-4
5-5
5-6
5-7
Assets relating to statutory funds
Liabilities relating to statutory funds
Reconciliation of movements in contract liabilities
Contribution to profit or loss of statutory funds
Actuarial assumptions and methods
Disclosures on asset restrictions, managed assets and trustee activities
Capital adequacy position
Section 6 - Other disclosures
6-1
6-2
6-3
6-4
6-5
6-6
Parent entity financials
Group subsidiaries
Share-based payments
Remuneration of auditors
Key management personnel
Related party transactions
Section 7 - Basis of preparation
7-1
7-2
7-3
7-4
7-5
1
10
31
32
33
35
36
37
39
Reporting entity
Basis of preparation
Other significant accounting policies
New standards and interpretations not yet adopted
Subsequent events
40
40
46
47
49
49
51
52
54
55
58
58
59
59
61
62
63
63
63
64
65
66
68
69
69
69
70
71
72
72
73
73
73
74
74
78
78
79
80
80
80
81
84
84
Source: ASX release: IOOF Full Year Statutory Accounts and Appendix 4E
Date: 22 August 2014
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Note
Notes to the financial statements
Section 1 - Risk management
Appendix
Remove / Re-label & Reorder
IOOF Annual Financial Report 2014
Contents
KPMG
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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35
36
37
38
39
40
41
Contents
Page Number
Directors' Report
Remuneration Report
Directors' Declaration
Lead Auditor's Independence Declaration
Independent Auditor's Report to the Members
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
1
12
37
38
39
41
42
43
46
Notes to the Financial Statements
Reporting entity
Basis of preparation
Significant accounting policies
Risk management
Financial instruments
Operating segments
Revenue
Expenses
Finance costs
Income tax expense
Cash and cash equivalents
Receivables
Other financial assets
Other assets
Equity‐accounted investees
Property and equipment
Deferred tax assets and liabilities
Goodwill
Other intangible assets
Payables
Borrowings
Other financial liabilities
Provisions
Other liabilities
Share capital
Reserves
Retained profits/(losses)
Dividends
Earnings per share
Acquisition of subsidiary
Share‐based payments
Remuneration of auditors
Key management personnel
Related party transactions
Operating leases
Capital commitments
Contingencies
Reconciliation of cash flows from operating activities
Group entities
Statutory funds
Subsequent events
47
47
48
61
68
69
71
72
72
73
74
74
75
75
76
77
78
79
81
82
82
83
84
84
85
87
88
88
89
90
91
95
96
96
98
98
98
101
102
105
108
Source: ASX release: IOOF Holdings Limited Full Year Statutory Accounts
Date: 25 October 2013
Operating and financial reviews: October 2014 16
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
KPMG
How we can help
Appendix
Re-label & Reorder
Lend Lease
ANNUAL REPORT 2014
99
Example 6 – Lend Lease
Lend Lease have included the
accounting policies that relate
to specific balances within the
associated note in their 2014
report. The Significant Accounting
Policies note principally contains
the statement of compliance,
basis of preparation and impact
of new / revised accounting
standards policies.
Lend Lease
annual report 2013
124
notes to the ConsoLIdated FInanCIaL stateMents CONTINUED
2. Revenue
Accounting Policies
Revenue from the provision of services is recognised in the Income Statement in proportion to the stage of completion of the transactions at
the balance sheet date.
¡ For construction and development: the value of work performed using the percentage complete method, which is measured by reference to
costs incurred to date as a percentage of total forecast costs for each contract.
¡ Development also includes retirement living Deferred Management Fees (‘DMF’). A typical DMF contract provides for an annual fee for a fixed
period on the property occupied by a resident (e.g. 3% per annum of purchase or resale price for a period up to 10–12 years, or 30%–36% in
total) plus a share of the capital gain realised on turnover. For both owned retirement villages (investment property) and managed retirement
villages, DMF income is recognised on an annual accrual basis based upon the expected term of the resident’s licence and estimates of
capital growth since the resident first occupied the unit.
¡ For infrastructure development: origination, asset management and facility management fee entitlements are recognised for services rendered.
1. significant accounting policies continued
1.3 Impact of New/Revised Accounting Standards
continued
new accounting standards and Interpretations not Yet adopted
Certain new accounting standards and interpretations have been
published that are not mandatory for the financial year ended 30 June
2013 but are available for early adoption and have not been applied in
preparing this report.
The potential effect of these is outlined below:
n
¡ For investment management: funds and asset management fee entitlements are recognised for services rendered.
Revenue from the sale of development properties is recognised in the Income Statement when:
¡ The significant risks and rewards have been transferred to the buyer;
These standards address the classification, measurement and
derecognition of financial assets and financial liabilities. The potential
effect of this standard is yet to be determined.
¡ The Group retains neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the
development properties sold;
¡ The revenue can be measured reliably and it is probable that the Group will receive the consideration due; and
n
AASB 10 Consolidated Financial Statements introduces a new
definition of control and addresses whether an entity should be included
within the consolidated financial statements of the parent company.
n
AASB 11 Joint Arrangements establishes principles for financial
reporting by parties to a joint arrangement.
¡ The Group can reliably measure the costs incurred or to be incurred in respect of the transaction.
Rental revenue is recognised in the Income Statement on a straight line basis over the term of the lease unless another systematic basis is more
appropriate. Lease incentives granted are recognised as an integral part of the total rental income.
AGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE
ELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND
ECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG
ER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM
GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAINITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC
ORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL
ANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION
T SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO
NO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE
DQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT
COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE
LD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPTOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY
CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE
PITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY
WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE
NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELN SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON
HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING
PHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL
OURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM
RT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELLDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY
TIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODVILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC
HOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE
DS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO
CIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN
NT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE
ENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA
OYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE
H SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL
ANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION
T SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO
NO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE
DQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT
COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE
LD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPTOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY
CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE
PITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY
WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC VILLAGE 2006 TORINO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE
NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE WOMEN’S AND CHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELN SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO SOUTH BBC HEADQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON
HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN DARLING HARBOUR & COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING
PHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE GATEWAY BRIDGE GOLD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA LUMPUR PETRONAS TOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL
OURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE MID–CITY SHOPPING CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM
RT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL QUEENSLAND CHILDREN’S HOSPITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELLDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION SUNSHINE COAST UNIVERSITY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY
TIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANGRI–LA HOTEL TAIPEI 101 THE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODVILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO VICTORIA HARBOUR MELBOURNE WATERBANK PERTH YARRABILBA 2000 SYDNEY OLYMPIC
HOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM NEW YORK ACADEMY OF SCIENCE CANBERRA ADELAIDE
DS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE AUSTRALIAN WORLD EXPO PAVILION SHANGHAI BARANGAROO HEADLAND PARK BARANGAROO
CIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT BROADGATE LONDON CALTEX HOUSE CANELAND CENTRAL CASTLECRAG CRAIGIEBURN
NT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE DEUTSCHE BANK PLACE ELEPHANT & CASTLE ERINA FAIR ETIHAD STADIUM MELBOURNE
ENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPMENT HUME HIGHWAY IRON COVE BRIDGE JACKSONS LANDING JEM SINGAPORE KUALA
OYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY MACARTHUR SQUARE MELBOURNE MARKETS MELBOURNE TENNIS CENTRE MLC CENTRE
H SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE PARRAMATTA STADIUM PORT BOTANY EXPANSION QANTAS DOMESTIC TERMINAL
ANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTTISH PARLIAMENT BUILDINGS SETIA CITY MALL STATUE OF LIBERTY RESTORATION
T SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDNEY OLYMPIC AQUATIC CENTRE SYDNEY OPERA HOUSE – STAGE 1 SYDNEY SHANROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY LODGING THREDBO VILLAGE TIME WARNER CENTRE TRUMP TOWER CHICAGO
NO WINTER OLYMPIC VILLAGE 2012 LONDON OLYMPIC ATHLETES VILLAGE 313@SOMERSET SHOPPING CENTRE 30 THE BOND, SYDNEY NATIONAL SEPHILDREN’S HOSPITAL ADELAIDE OVAL ALKIMOS ANZ HEADQUARTERS – MELBOURNE DOCKLANDS ANZAC BRIDGE AURORA PLACE AUSTRALIA SQUARE
DQUARTERS BLUES POINT TOWER BLUEWATER SHOPPING CENTRE BON SECOURS ST FRANCIS MEDICAL PAVILION BRISBANE INTERNATIONAL AIRPORT
COCKLE BAY DARLING HARBOUR LIVE DARLING PARK THE DARLING QUARTER DEPARTMENT OF DEFENSE MILITARY HOUSING PRIVATIZATION INITIATIVE
LD COAST UNIVERSITY HOSPITAL GRAND CENTRAL STATION RESTORATION GREENWICH PENINSULA HER MAJESTY’S TREASURY BUILDING REDEVELOPTOWERS LAKESIDE JOONDALUP LANCASHIRE COUNTY COUNCIL SCHOOLS PFI INITIATE LLOYDS BUILDING LONDON M2 MOTORWAY M7 MOTORWAY
CENTRE MUSEUM FOR AFRICAN ART NEW YORK NATIONAL MUSEUM CANBERRA NORTH SHORE MEDICAL CENTRE ONE57 NEW YORK PARKWAY PARADE
PITAL RNA SHOWGROUNDS ROYAL CHILDREN’S HOSPITAL MELBOURNE ROYAL MANCHESTER CHILDREN’S HOSPITAL SCOTTISH NATIONAL ARENA SCOTY HOSPITAL SUNSHINE PLAZA SHOPPING CENTRE SYDNEY INTERNATIONAL AIRPORT SYDNEY FOOTBALL STADIUM SYDNEY FOUR SEASONS HOTEL SYDE INTERNATIONAL QUARTER THE ROYAL EXCHANGE REMODELLING THE THEATRE ROYAL THE US DEPARTMENT OF THE ARMY’S PRIVATIZATION OF ARMY
LEND LEASE ANNUAL REPORT 2014
LEND LEASE
ANNUAL REPORT
2014
OVER 50
YEARS
CREATING THE
BEST PLACES
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
n
June 2014
A$m
June 20131
A$m
11,011.3
11,466.4
Development
295.6
273.2
Infrastructure Development
238.9
313.0
n
Revenue from the provision of services
Construction
205.4
130.4
Total revenue from the provision of services
Investment Management
11,751.2
12,183.0
Revenue from the sale of development properties
2,079.6
898.2
Rental revenue
53.3
48.9
Other revenue
51.8
32.5
13,935.9
13,162.6
Total revenue
1 June 2013 has been adjusted to reflect the impact of the first time adoption of the new AASB 11 Joint Arrangements standard (refer to Note 1.3 ‘Impact of New/Revised
Accounting Standards’).
Source: Lend Lease Annual Report 2014
Date: 30 September 2014
1.4 Revenue, Other Income and Profits
revenue from the provision of services
Revenue from the provision of services is recognised in the Income
Statement in proportion to the stage of completion of the transactions
at the balance sheet date.
For property construction: the value of work performed using the
percentage complete method, which is measured by reference to costs
incurred to date as a percentage of total forecast costs for each contract.
For property and funds management: property development and
management fee entitlements for services rendered.
For aged care and retirement living:
n
n
AASB 12 Disclosure of Interests in Other Entities relates to disclosure
requirements for all forms of interests in other entities, including
subsidiaries, joint arrangements, associates and unconsolidated
structured entities. Application of this standard will not affect amounts
recognised in the financial statements, however it will impact the type
of information disclosed in relation to the Group’s investments.
AASB 13 Fair Value Measurements and AASB 2011-8 Amendments
to Australian Accounting Standards arising from AASB 13
introduce new guidance on fair value measurement and disclosure
requirements when fair value is permitted by accounting standards.
Application of this standard will not affect amounts recognised in the
financial statements, however it will impact the type of information
disclosed in relation to the fair value hierarchy.
The revised AASB 119 Employee Benefits (June 2011) and
AASB 2011-10 Amendments to Australian Accounting Standards
arising from AASB 119 (September 2011) introduce changes
to the accounting for and presentation of pensions and other
post-employment benefits. The revised standard eliminates the
corridor approach which defers the recognition of actuarial gains
and losses attributable to the Group’s defined benefit plans in the
Statement of Comprehensive Income. The revised standard also
requires the net interest expense on fund obligations and interest
income on assets to be determined by applying the discount
rate used to measure the fund obligations. Previously, the Group
determined interest income on fund assets based on the expected
long term return for each asset class.
Had the revised standard been applied at 30 June 2013,
and previously unrecognised cumulative gains and losses
had been recognised, total equity would have decreased by
A$63.8 million, after tax. The amount recognised in the Statement
of Comprehensive Income for current year actuarial gains to
30 June 2013 would have been A$23.2 million, after tax. In
addition, the impact to the defined benefit expense on adopting the
amendments would decrease profit after tax by A$2.8 million, for the
year ended 30 June 2013.
Deferred Management Fees (‘DMF’):
A typical DMF contract provides for an annual retainer for a fixed
period (e.g. 3% per annum of purchase or resale price for a period
up to 12 years, or 36% in total) plus a share of the capital gain
realised on turnover.
For both owned retirement villages (investment property) and
managed retirement villages, DMF income is recognised on an
annual accrual basis based upon the expected term of the resident’s
licence and estimates of capital growth since the resident first
occupied the unit.
The Group’s assessment of the impact of AASB 10 and AASB 11
indicates that the application of these standards is unlikely to have a
significant impact on the Group’s financial position and performance.
Other revenue primarily includes dividends/distributions and miscellaneous items. Dividend/distribution income is recognised when the right to
receive payment is established, usually on declaration of the dividend/distribution.
Financial Disclosure
AASB 9 Financial Instruments, AASB 2009-11 Amendments to
Australian Accounting Standards arising from AASB 9, AASB
2010-7 Amendments to Australian Accounting Standards arising
from AASB 9 (December 2010) and AASB 2012-6 Amendments
to Australian Accounting Standards – Mandatory Effective Date of
AASB 9 and Transition Disclosures (September 2012).
The standards above become mandatory for the June 2014 financial
year, with the exception of AASB 9 which will apply to the June
2016 financial year. With the exception of AASB 13, which applies
prospectively, the standards are to be applied retrospectively.
n
Aged Care Revenue:
Aged Care revenue comprises daily resident living contributions,
retention fees and government funding, which are all determined in
accordance with Federal Government authorised rates.
This revenue is recognised as the services are provided. The Group
is entitled to charge an annual retention fee to hostel residents.
These annual fees are regulated by the Federal Government and are
paid by a resident on departure. These fees are accrued during the
resident’s period of occupancy.
revenue and profits from the sale of development properties
Revenue and profits from the sale of development properties are
recognised in the Income Statement when:
n
The significant risks and rewards have been transferred to the buyer;
n
The Group retains neither continuing managerial involvement to the
degree usually associated with ownership, nor effective control over
the development properties sold;
n
The revenue can be measured reliably and it is highly probable that
the Group will receive the consideration due; and,
n
The Group can reliably measure the costs incurred or to be incurred
in respect of the transaction.
rental revenue
Rental revenue is recognised in the Income Statement on a straight line
basis over the term of the lease unless another systematic basis is more
appropriate. Lease incentives granted are recognised as an integral part
of the total rental income.
Source: Lend Lease Annual Report 2013
Date: 30 September 2013
Operating and financial reviews: October 2014 17
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
Financial Report
Example 7 – Seek
Seek have grouped the notes
to the financial statements into
specific categories. They have also
moved the summary of significant
accounting policies to be the last
note within the financial report.
Appendix 4E and
Statutory Accounts
For the year ended 30 June 2014
Re-label & Reorder
Contents
Page
Contents
Financial statements
Page
Financial statements
55
56
57
58
59
Appendix
KPMG
How we can help
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
60
Note 1
62
69
69
70
71
72
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
76
77
78
Note 8
Note 9
Note 10
87
88
89
Note 11
Note 12
Note 13
Critical accounting estimates and judgements
Performance
Segment information
Revenue
Other income
Expenses
Earnings per share (EPS)
Income tax
Cash
Cash and cash equivalents
Reconciliation of profit for the year to net cash inflow from operating activities
Financial risk management
Assets
Trade and other receivables
Other financial assets
Plant and equipment
90
Note 14
Intangible assets
93
Note 15
93
94
95
Note 16
Note 17
Note 18
Note 19
100
101
106
Note 20
Note 21
Note 22
107
108
110
118
121
Note 23
Note 24
Note 25
Note 26
Note 27
122
122
123
Note 28
Note 29
Note 30
124
128
129
130
Note 31
Note 32
Note 33
Note 34
Net tangible asset backing
Liabilities
Trade and other payables
Borrowings
Other financial liabilities
Provisions
Equity
Contributed equity
Equity
Dividends
Group structure
Business combinations
Discontinued operation
Interests in other entities
Deed of cross guarantee
Parent entity financial information
Unrecognised items
Contingent liabilities
Commitments for expenditure
Events occurring after the balance sheet date
Others
Share-based payments
Related party transactions
Remuneration of auditors
Summary of significant accounting policies
144
145
Directors’ declaration
Independent auditor’s report to the members of SEEK Limited
52
53
54
55
56
Consolidated income statement
Consolidated statement of comprehensive Income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
57
71
78
80
85
86
86
87
90
90
92
95
96
97
100
100
102
103
106
107
109
110
114
115
116
117
119
120
123
127
129
129
130
130
131
132
133
Note 1
Summary of significant accounting policies
Note 2
Financial risk management
Note 3
Critical accounting estimates and judgements
Note 4
Segment information
Note 5
Revenue
Note 6
Other income
Note 7
Expenses
Note 8
Income Tax
Note 9
Cash and cash equivalents
Note 10
Trade and other receivables
Note 11
Investments accounted for using the equity method
Note 12
Other financial assets
Note 13
Plant and equipment
Note 14
Intangible assets
Note 15
Trade and other payables
Note 16
Borrowings
Note 17
Other financial liabilities
Note 18
Provisions
Note 19
Contributed equity
Note 20
Other equity
Note 21
Dividends
Note 22
Key management personnel disclosures
Note 23
Remuneration of auditors
Note 24
Contingent liabilities
Note 25
Commitments for expenditure
Note 26
Share-based payments
Note 27
Related party transactions
Note 28
Deed of cross guarantee
Note 29
Business combinations
Note 30
Interests in controlled entities
Note 31
Events occurring after balance date
Note 32
Reconciliation of profit for the year to net cash inflow from operating activities
Note 33
Earnings per share (EPS)
Note 34
Net tangible asset backing
Note 35
Parent entity financial information
Directors’ declaration
Independent auditor’s review report to the member of SEEK Limited
This Financial Report covers SEEK Limited as a consolidated entity
consisting of SEEK Limited and its controlled entities. The financial
report is presented in the Australian currency. The Financial Report
was authorised for issue by the directors on 21 August 2013. The
Company has the power to amend and reissue the Financial Report.
Source: Seek Limited Annual Report 2013
Date: 30 October 2013
SEEK Limited is a company limited by shares, incorporated and
domiciled in Australia. Its registered principal place of business is:
Level 6, 541 St Kilda Road, MELBOURNE VIC 3004
A description of the nature of the consolidated entity’s operations
and its principal activities is included in the review of operations
and activities in the Directors Report on pages 7 to 40, which are
not part of this Financial Report. Through the use of the internet,
we have ensured that our corporate reporting is timely, complete
and available globally at minimum cost to the Company. All press
releases, financial reports and other information are available at our
Investor Relations page on our website at www.seek.com.au.
Lodged with the ASX under Listing Rule 4.3A
SEEK Limited ABN 46 080 075 314
54
SEEK Limited Annual Report 2014
Source: Seek Limited Appendix 4E and statutory accounts 2014
Date: 20 August 2014
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
SEEK Limited Annual Report 2013
51
Operating and financial reviews: October 2014 18
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
59
Consolidated Notes Year Ended 30 June 2014
65
Consolidated
Notes
Consolidated
Notes
Year ended 30 June 2014
Year ended 30 June 2014
(A) Basis of Preparation
(B1)
(B)Revenue
Results
Financial Report 2013
60
(A) Basis of Preparation
(B) Results for the year
(B) Results for the year
Stockland has grouped its note
disclosures into six sections in the
2014 financial report. Each section
sets out the accounting policies
applied in preparing the relevant
note. They have also included
“Keeping it simple” text boxes
to provide commentary on more
complex sections in plain English,
and have reduced total page length
by 14.
Appendix
Re-label & Reorder / Rewrite
Consolidated
30 June 2014
Consolidated Notes
Year Ended Notes
30 JuneYear
2014 Ended59
Example 8 – Stockland
KPMG
How we can help
60
65
65
for the year
Consolidated Statements of Changes in Equity (continued)
65
In this section
(B3) Personnel expenses
This section explains the results and performance of 72
Stockland and the Stockland Trust Group.
(B1) Revenue
(B2)
Operating
(B4)
Taxation
segments
66
This section provides additional information about those individual line items in the financial statements that
72 including:
the Directors consider most relevant in the context of77
the operations of the entity,
(B4)
Taxation
(C)
Operating
assets and liabilities
Notes
Balance as at 1 July 2012
73 in the financial
(a) Accounting policies that are relevant for understanding
the items recognised
78
statements.
(C1)
Real
Estate assets
and liabilities
(B5)
Earnings
per security/unit
77
78
(b) Analysis of the Group’s result for the year by reference to key areas, including: revenue, results
93
by operating segment, personnel costs, income tax and earnings per security.
(C2) Financial assets and liabilities
(C)Other
Operating
assets
and
(C3)
non-financial
assets
andliabilities
liabilities
(C1) Real Estate assets and liabilities
(B1) Revenue
(C2)
assets and liabilities
(D1)
NetFinancial
financing costs
(D)Other
Capital
Structure
and
Financing
(D4)
financial
assets and
liabilities
98
93
100
94
Revenue is recognised at the fair value of the consideration received or receivable, net of the amount of goods and
and liabilities
services tax (“GST”) levied.
(D3) Interest-bearing loans and borrowings
78
98
Property development sales
Costs
(D5)
FairNet
value
hierarchy costs
(D1)
financing
equivalents
(D7) Issued capital
100
98
104
Revenue from land and property sales is recognised when Stockland has transferred significant risks and rewards
106 be reliably measured. 98
of ownership to the buyer and the amount of revenue can
Rent from investment properties
110
100
122
rent billed to tenants. Contingent
(D4) Other financial assets and liabilities Rent from investment properties includes $9 million (2013: $8 million) contingent
104
(E) Group Structure
rent represents 1% of gross lease income.
123
(E1) Investments in associates
Deferred Management Fees
124
(D5) Fair value hierarchy
(D6) Financial risk factors
106
124 the tenancy period. DMF’s include both fixed fees
Deferred Management Fees (“DMF”) are recognised over
(D7)
Issued capital
118
recognised on a straight line basis and contingent fees125
recognised when earned.
(E3)
Investments
in unconsolidated structured entities
(E4)
Controlled
entities
(D8)
Dividends
and
DMF are calculated on the entry price of the unit. DMF126
are recognised each period,
122 however fees are only realised
in cash at the end of the residents tenure.
128
(E)Parent
Group
Structure
(E6)
entity
disclosures
130 and realised in cash123
DMF calculated on the exit price of the unit are recognised
at the end of the resident’s tenure.
Investments
in associates
(F)(E1)
Other
items
Accounting for DMF is further explained in Note B2.
distributions
(E2)
Investments
in joint venture entities Dividends and distributions
(F1)
Contingent
liabilities
(F2)
Commitments
(E3)
Investments
132
124
132
124
relevant entity.
(F4) Related party disclosures
Revenue recognised during the year is set out below: 134
(E4) Controlled entities
(E5) Deed of Cross Guarantee
133
(F5) Key Management Personnel disclosures
136
(E6)
Parent
entity disclosures
(F6)
Auditor’s
remuneration
137
(F7) Events subsequent to the end of the year
137
(F) Other items
104
development sales
Stockland Financial Property
Report
Rent from investment properties
(F1) Contingent liabilities
(F2) Commitments
835.3
8,036.1
–
646.6
646.6
8.2
–
8.2
Total comprehensive income
–
–
8.2
646.6
654.8
27
(2.8)
–
(2.8)
Securities issued from capital raising, net of transaction costs
27
381.5
–
–
–
381.5
Securities purchased and held in Employee Share Plan (Treasury Shares)
27
(4.6)
–
–
–
(4.6)
Distributions to unitholders
29
–
–
–
(541.7)
(541.7)
Expense relating to rights and securities granted under share plans, net of tax
28
–
–
–
(0.8)
–
–
(0.8)
374.1
(0.8)
–
(541.7)
(168.4)
Balance as at 30 June 2013
7,553.9
Balance as at 1 July 2011
16.8
11.6
940.2
8,522.5
7,700.3
21.3
6.6
771.2
8,499.4
Profit for the period
–
–
–
606.1
606.1
Other comprehensive expense
–
–
(3.2)
–
(3.2)
Total comprehensive (expense)/income
–
–
(3.2)
606.1
602.9
27
(524.7)
–
–
Units issued during the year, net of transaction costs
27
4.2
–
–
–
4.2
Distributions to unitholders
29
–
–
–
(542.4)
(542.4)
Units exercised under share plans transferred to undistributed income
28
–
(0.4)
–
0.4
–
Vested units purchased on-market
28
–
(6.8)
–
–
(6.8)
Expense relating to rights and securities granted under share plans, net of tax
28
–
3.5
–
(524.7)
–
–
3.5
(520.5)
(3.7)
–
(542.0)
(1,066.2)
7,179.8
17.6
3.4
835.3
8,036.1
The above consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Stockland Financial Report 2013
55
128
Stockland
Trust Group
130
Stockland
2014
$M
$M
132
1,109
955
132
–
679
674
681
55
–
74
Dividend and distribution income
19
Other revenue
58
(F5) Key Management Personnel disclosures
Total revenue
1,939
(F4) Related party disclosures
3.4
–
126
Deferred Management Fees from Retirement Living
(F3) Notes to Cash Flow Statements
Total
equity
$M
–
Source: Stockland Financial Report 2013
Date: 25 September 2013
132 in profit or loss on the125
Revenue
from dividends and distributions are recognised
date they are declared by the
in unconsolidated structured
entities
(F3) Notes to Cash Flow Statements
17.6
Undistributed
income
$M
–
Balance as at 30 June 2012
(E5) Deed of Cross Guarantee
7,179.8
Cash flow
hedge
reserve
$M
–
110
(E2) Investments in joint venture entities
Executive
remuneration
reserve
$M
Profit for the period
Securities bought back during on-market buyback, net of transaction costs
118
Rent is recognised on a straight-line basis over the lease term, net of any incentives.
(D3) Interest-bearing loans and borrowings
100
(D8) Dividends and distributions
Issued
capital
$M
Other comprehensive income
Securities bought back during on-market buyback, net of transaction costs
78
94
(D) Capital Structure and Financing Costs
(D6)
Financial
(D2)
Cash risk
andfactors
cash
ATTRIBUTABLE TO UNITHOLDERS OF THE STOCKLAND TRUST GROUP
65
73
(B5)
Earnings
per security/unit
(B3)
Personnel
expenses
(D2)
Cash
and cash
equivalentsassets
(C3)
Other
non-financial
66
FOR THE YEAR ENDED 30 JUNE 2013
(B2) Operating segments
2013
132
133
2014
$M
2013
$M
–
680
–
1
–
1
43
13
–
136
1,728
694
134
(F6) Auditor’s remuneration
137
(F7) Events subsequent to the end of the year
137
681
(D4) Other financial assets and liabilities
Financial
Report
30 June 2014
Focused
on growth
Keeping it simple . . .
A derivative is a type of financial instrument typically used to manage risk. A derivative's value changes over
time in response to underlying variables such as exchange rates or interest rates and is entered into for a
fixed period. A hedge is where a derivative is used to manage an underlying exposure. Stockland uses
derivatives to manage exposure to foreign exchange and interest rate risk.
Derivative financial instruments
Source: Stockland Financial Report 2014
Derivative financial instruments are recognised initially at fair value and remeasured at each balance date. The
Date: 18 August 2014
gain or loss on re-measurement to fair value is recognised in profit or loss. However, where derivatives qualify for
hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged, refer
to Note D6(d).
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the
swap at the reporting date, taking into account current interest rates and the current creditworthiness of swap
Operating and financial reviews: October 2014 19
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
KPMG
How we can help
Appendix
Re-label & Reorder
Wesfarmers | aNNUaL report 2013
Example 9 – Wesfarmers
Financial statements
Financial statements
for the year ended 30 June 2014 - Wesfarmers Limited and its controlled entities
for the year ended 30 June 2013 – Wesfarmers Limited and its controlled entities
Contents
Contents
ceNtury OF PROGRESS
PrOGreSS
A CENTURY
Wesfarmers have grouped notes
into six key sections: Key numbers,
Capital, Risk, Group structure,
Unrecognised items and Other.
They have also explained their
“basis of materiality” in selecting
notes to be included in the
financial report, and have reduced the
length of the financial report by
37 pages
financial
statements
notes to the financial statements: About this report | for the year ended 30 June 2014
Delivering today.
Value tomorrow.
Page 104
Statement of comprehensive income
Page 105
the notes to the financial statements
The notes include information which is required to understand the
financial statements and is material and relevant to the operations,
financial position and performance of the Group. Information is
considered material and relevant if, for example:
– the amount in question is significant because of its size or nature;
– it is important for understanding the results of the Group;
– it helps to explain the impact of significant changes in the Group’s
business – for example, acquisitions and impairment writedowns;
or
– it relates to an aspect of the Group’s operations that is important
to its future performance.
– Key numbers: provides a breakdown of individual line items in the
financial statements that the directors consider most relevant and
summarises the accounting policies, judgements and estimates
relevant to understanding these line items;
– Capital: provides information about the capital management
practices of the Group and shareholder returns for the year;
– Risk: discusses the Group’s exposure to various financial risks,
explains how these affect the Group’s financial position and
performance and what the Group does to manage these risks;
– Group structure: explains aspects of the group structure and how
changes have affected the financial position and performance of
the Group;
– Unrecognised items: provides information about items that are
not recognised in the financial statements but could potentially
have a significant impact on the Group’s financial position and
performance; and
– Other: provides information on items which require disclosure
to comply with Australian Accounting Standards and other
regulatory pronouncements however, are not considered critical in
understanding the financial performance or position of the Group.
Wesfarmers | Annual Report 2014
Directors’ declaration
176
97
Independent auditor’s report
177
Balance sheet
98
Annual statement of coal resources and reserves 178
Notes to the financial statements: Segment information
Cash flow statement
for the year ended 30 June
2014
Page
107
Page 108
Page 109
The Group’s operating segments are organised and managed separately
Page
111 and services provided.
according to the nature of the
products
The financial position and performance of the Group was particularly
affected by the following events and transactions during the reporting
Key numbers
Capital
risk
period:
– The disposal of the underwriting,
and broking
1. Income premium
10. funding
Capital
15. Financial risk
management
operations, which collectively constituted the
entire businessmanagement
operations of the Wesfarmers’ Insurance division, in June 2014.
Expenses pre-tax
11. profit
Dividends
Hedging
Wesfarmers recorded a2. combined
of and
$1,04016.million
distributions
during the year in relation to these discontinued
operations (refer
to note 20);
3. Tax expense
12. Equity and
17. Impairment of
– The disposal of the Group’s 40 per cent interest
reservesin the Western
non-financial
assets
Australian-based industrial gas producer and supplier Air Liquide
4. Cash and
cash in
13.the
Earnings
per Industrial
WA Pty Ltd and its associated
interest
Kwinana
equivalents
share
Gas Joint Venture in December 2013. On completion of the
transaction Wesfarmers recognised a pre-tax profit of $95 million;
5. Trade and other 14. Interest-bearing
– The carrying value of the Target
cash generating
unit (CGU)
receivables
loans and
borrowings of
exceeded its recoverable amount and an impairment
$677 million was recognised
in respect of its goodwill in
6. Inventories
‘impairment expenses’. The decrease in the recoverable amount
largely reflects a financial performance in 2014 below expectations
7. Property,
plant
as a result of difficult trading
conditions
and an increase in the
and equipment
discount rate on account of the risk associated with Target’s
turnaround strategy (refer
to
note 17);
8. Goodwill and
intangibleprovision for restructuring
– The recognition of a $94 million
assets
activities commenced within
the Coles Liquor business;
9. Provisions
– The acquisition of additional coal resources, being Mineral
Development Licence 162, from Peabody Energy Budjero Pty
Ltd for $70 million in January 2014, which is expected to extend
Curragh’s mine life and provide future options to further optimise
mine operations;
signed
Directors’
declaration
– The sale
and lease back
of a portfolio
of 27 Bunnings Warehouse
reports
properties
for $591 million;
and
Independent auditor’s report
– A capital return to shareholders of 50 cents per fully-paid ordinary
and partially protected share in November 2013, accompanied by
a proportionate share consolidation (refer to note 10).
Group structure
18. Associates
and joint
arrangements
19. Subsidiaries
20. Discontinued
operations
Annual statement of coal resources and reserves
Each segment represents a strategic business unit that offers
unrecognised
items and operates
other
different products
in different industries and markets.
The Board and executive management team (the chief operating
21. Commitments and
23. Parent
decision-makers)
monitor
the operating results of the business units
contingencies
disclosures
separately for the purpose of making decisions about resource
allocation
and
performance
22.
Subsequent
events
24. Deed ofassessment.
Cross
Interest income and expenditure are not allocated to operating
27. Other
segments, as this type accounting
of activity is managed on a group basis.
policies
Transfer prices between
business segments are set on an arm’s
28. Share-based
length basis in a manner
similar to transactions with third parties.
payments
Segment revenue, expenses and results include transfers between
29.
Director
and
business segments. Those transfers
are eliminated on consolidation
and are not consideredexecutive
material.
disclosures
The operating segments and their respective types of products and
services are as follows:
retail
coles
–
Supermarket and liquor retailer, including a hotel portfolio;
–
Retailer of fuel and operator of convenience stores; and
Page
147
Coles property business
operator.
148Supplies (HIOS)
Home Improvement andPage
Office
–
Retailer of building material and home and garden improvement
products;
–
Servicing project builders and the housing industry; and
Page 149
Office supplies products.
Page 152
–
Shareholder information
Kmart
Five-year financial history
–
Investor information
Corporate directory
–
153merchandise, including toys, leisure,
Retailer of apparel andPage
general
entertainment, home and consumables; and
Page 154
Provision of automotive service, repairs and tyre service.
Page 155
Retailer of apparel, homewares and general merchandise, including
accessories, electricals and toys.
Wesfarmers annual report 2014
Source: Wesfarmers Annual Report 2014
Date: 09 September 2014
Insurance
Five-year financial history
182
Notes to the financial statements
101
Investor information
183
1
Corporate information
101
Corporate directory
184
2
summary of significant accounting policies
101
3
segment information
115
4
Income and expenses
118
–
–
6
7
8
9
earnings per share
99
and Fertilisers (WesceF)
119
121
Manufacture and marketing of chemicals for industry, mining and
Dividends
paid and proposed
121
mineral
processing;
Cash and cash equivalents
122
trade and other receivables
123
Manufacture and marketing of broadacre and horticultural fertilisers;
– 10National
marketing and distribution of LPG and124
LNG;
Inventories
– 11LPG
and LNG
extraction
for contracts,
domestic and export markets; and
Investments
backing
insurance
–
reinsurance and
other recoveries
124
Manufacture,
marketing
and distribution of industrial,
medical and
12specialty
Investments
in associates
gases.
125
13 property, plant and equipment
126
Other
14 Intangible assets and goodwill
128
15 other assets
Includes:
–
131
16 trade and other payables
131
17 Interest‑bearing loans and borrowings
132
Forest products: non-controlling interest in Wespine Pty Ltd;
– 18Property:
provisionsnon-controlling interest in BWP Trust;134
– 19Investment
banking: non-controlling interest in 136
Gresham Partners
Insurance liabilities
Limited;
20Group
other liabilities
140
Contributed
141
– 21Private
equityequity
investment: non-controlling interests in
Gresham Private
Fund
No. 2 and Gresham Private Equity Fund
No. 3; and
22Equity
retained
earnings
143
reserves includes treasury, head office, central
143support functions
– 23Corporate:
other risk
corporate
entity
expenses.
Corporate144
is not considered an
24and
financial
management
objectives
and policies
segment and includes activities that are
25operating
Hedging activities
154 not allocated to
operating
segments.
26other
Commitments
and
contingencies
157
27 events after the balance sheet date
158
Seasonality
28 Interest in jointly controlled assets
159
Revenue
and earnings of various divisions are affected
by seasonality
29 parent disclosures
160
and
cyclicality as follows:
30 subsidiaries
161
Deed
of Cross
Guarantee
167
– 31For
retail
divisions,
earnings are typically greater
in the December
of the
financial
year due to the impact of the
32half
related
party
transactions
169Christmas holiday
period;
33shopping
auditor’s remuneration
169
share‑based
payment
plans the majority of the entity’s
170
– 34For
the Resources
division,
coal
tonnages are renewed on an annual172
basis from April
35contracted
pension plan
calendar
year and
are subject to price renegotiation
on a
36each
Director
and executive
disclosures
173
quarterly basis; and
–
For the Chemicals, Energy and Fertilisers division, earnings are
typically greater in the second half of the financial year due to the
impact of the Western Australian winter season break on fertiliser
sales.
Geographical information
Source: Wesfarmers
Annual
Report
The table below provides
information
on the 2013
geographical location
of revenue and non-current assets (other than financial instruments,
Date: 26 September
2013
deferred tax assets and pension assets). Revenue from external
target
–
180
100
5 Income tax
chemicals,
energy
Guarantee
The types of products and services from which each reportable
segment derives its25.
revenues
Auditors’ are disclosed below. Segment
remuneration
performance is evaluated
based on operating profit or loss (segment
result), which in certain respects, is presented differently from
26. Related party
operating profit or loss transactions
in the consolidated financial statements.
–
Shareholder information
Statement of changes in equity
Cash flow statement
Page 106
notes to
About this report
the financial
Significant
changes in the current reporting period
Segment information
statements
asX
information
96
Statement of comprehensive income
Balance sheet
Statement of changes in equity
The notes are organised into the following sections:
A CENTURY OF PROGRESS
Income statement
Income statement
103
–
Supplier of specialist rural and small business regional insurance;
and
–
Supplier of broking services and general insurance through broking
intermediaries.
customers is allocated to a geography based on the location of the
operation in which it was derived. Non-current assets are allocated
based on the location of the operation to which they relate. Revenue
and non-current assets from the Insurance division have been
excluded.
revenue
The Group has classified the Insurance segment as a discontinued
operation in 2014.
Australia
Industrial
Other foreign countries
resources
–
Coal mining and development; and
–
Coal marketing to both domestic and export markets.
New Zealand
Non-current assets
2014
2013
2014
2013
$m
$m
$m
$m
58,959
56,787
28,949
29,558
1,218
961
574
611
4
1
5
19
60,181
57,749
29,528
30,188
95
Industrial and Safety (WIS)
110
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
Wesfarmers annual report 2014
–
Supplier and distributor of maintenance, repair and operating
products;
–
Manufacture and marketing of industrial gases and equipment;
–
Specialised supplier and distributor of industrial safety products and
services; and
–
Provider of risk management and compliance services.
Wesfarmers annual report 2014
111
Operating and financial reviews: October 2014 20
Foreword
The principles of
Cutting the Clutter
Introduction
Results
Practical
application
Standard setters
and regulators
Appendix 2 – Example Reporting
KPMG
How we can help
Appendix
Re-label & Reorder / Rewrite / Remove
2014 Financial Report Contents
2013 Financial Report Contents
Example 10 – Steadfast
Steadfast applied judgement
to their financial statements
and removed immaterial notes,
reducing them by 18. They also
re-ordered and re-wrote
accounting policies to aid
improvement in communication
with a focus on what was
significant to the financial
statements.
Directors’ report
25
Remuneration report – audited
34
Lead auditor’s independence declaration
51
21 Directors’ report
28 Remuneration report – audited
FINANCIAL STATEMENTS
Consolidated statement of comprehensive
income
52
Consolidated statement of financial position
54
Consolidated statement of changes in equity
56
41 Lead auditor’s independence declaration
Financial statements
54 Note 4. Operating segments
55 Note 5. Revenue
Consolidated statement of cash flows
58
Notes to the financial statements
59
44 Statement of changes in equity
Directors’ declaration
96
Independent auditor’s report
97
45 Statement of cash flows
46 Notes to the financial statements
89 Directors’ declaration
90 Independent auditor’s report
56 Note 7. Income tax expense/(benefit)
57 Note 8. Current assets – cash and cash equivalents
57 Note 9. Current assets – trade and other receivables
57 Note 10. Current assets – other
59
Note 2. Significant accounting policies
59
58 Note 12. Non-current assets – property, plant and equipment
Note 3. Critical accounting judgements,
estimates and assumptions
61
59 Note 13. Non-current assets – intangible assets and goodwill
Note 4. Operating segments
62
Note 5. Earnings per share
63
61 Note 15. Current liabilities – trade and other payables
Note 6. Dividends
64
62 Note 16. Current liabilities – borrowings
Note 7. Intangible assets and goodwill
65
62 Note 17. Current liabilities – income tax payable
Note 8 Borrowings
67
62 Note 18. Current liabilities – provisions
Note 9. Notes to the statement of changes in
equity and reserves
68
63 Note 19. Non-current liabilities – other payables
Note 10. Business combinations
70
Note 11. Subsidiaries
76
Note 12. Investments in associates
78
57 Note 11. Non-current assets – investments
61 Note 14. Non-current assets – deferred tax assets
63 Note 20. Non-current liabilities – borrowings
64 Note 21. Non-current liabilities – deferred tax liabilities
65 Note 22. Non-current liabilities – provisions
65 Note 23. Equity – issued capital
81
Note 14. Financial instruments
Notes to the Financial
NoteStatements
15. Contingencies
82
67 Note 24. Equity – reserves
83
68 Note 25. Equity – non-controlling interest
FOR THE YEAR ENDED 30 JUNE 2014
Note 16. Commitments
84
68 Note 26. Equity – dividends
Note 17. Events after the reporting period
84
69 Note 27. Financial instruments
Note 18. Profit and loss information
86
71 Note 28. Key management personnel disclosures
72 Note 29. Remuneration of auditors
73 Note 30. Contingent assets
73 Note 31. Contingent liabilities
22.by
Related
transactions
92
The Company is a for-profit listed public companyNote
limited
shares,party
incorporated
and domiciled in Australia.
Its registered office and
principal place of business is Level 3, 99 Bathurst Street,
Sydney
NSW
2000.
Note 23.
Parent
entity
information
94
73 Note 32. Commitments
73 Note 33. Related party transactions
Note
24.itsRemuneration
of auditors
95
A description of the nature of the Group’s operations
and
principal activities
is included in the Directors’
report, which is not part of the
financial report.
75 Note 34. Parent entity information
76 Note 35. Business combinations
This general purpose financial report was authorised for issue by the Board on 27 August 2014.
80 Note 36. Subsidiaries
This year’s financial report is re-ordered and re-written to aid improvement in communication. The flow of information is grouped as follows:
81 Note 37. Investments in associates
• significant accounting policies and critical accounting judgements, estimates and assumptions – Notes 2 and 3;
82 Note 38. Interests in joint venture
• key financial indicators of the Group – Notes 4 to 6;
83 Note 39. Events after the reporting period
• significant assets and liabilities – Notes 7 to 8;
• equity related matters – Note 9;
87 Note 40. Reconciliation of profit/(loss) after income tax
to net cash from operating activities
24 | Steadfast Group Annual Report 2014
• group structure – Notes 10 to 13;
• risk and unrecognised items – Note 14 to 16; and
87 Note 41. Earnings per share
• additional information and disclosures required by Accounting Standards – Notes 17 to 24.
88 Note 42. Share based payments
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
Source:
Steadfast
Annual Report 2014
A. STATEMENT
OF COMPLIANCE
This financial
report has 2014
been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and other
Date:
27 August
© 2014 KPMG, an Australian partnership. All rights reserved. October 2014. NSW N12375AUD.
55 Note 6. Expenses
Note 1. General information
Note 19. Share based remuneration
86
This general purpose financial report is for the year ended 30 June 2014 and comprises the consolidated financial statements for Steadfast
Note 20. Taxation
89 a joint venture (Steadfast Group
Group Limited (Steadfast or the Company) and its subsidiaries,
and the Group’s interests in associates and
or the Group). These financial statements are presented
which of
is Steadfast’s
Note in
21.Australian
Notes to dollars,
the statement
cash flows functional
91 and presentation currency.
Annual Report 2014
53 Note 3. Critical accounting judgements, estimates
and assumptions
Note 13. Investment in joint venture
NOTE 1. GENERAL INFORMATION
Scale.
Strength.
Steadfast.
46 Note 2. Significant accounting policies
42 Statement of comprehensive income
43 Statement of financial position
NOTES TO THE FINANCIAL STATEMENTS
Notes to the financial statements
46 Note 1. General information
authoritative pronouncements of the Australian Accounting Standards Board, as appropriate for for-profit oriented entities and the
Australian Securities Exchange (ASX) Listing Rules.
International Financial Reporting Standards (IFRS) refer to the overall framework of standards and pronouncements approved by the International
Accounting Standards Board. IFRS forms the basis of the Australian Accounting Standards. This financial report of the Group complies with IFRS.
Source: Steadfast Annual Report 2013
Date: 30 August 2013
22
Steadfast Group Annual Report 2013
Operating and financial reviews: October 2014 21
Foreword
Introduction
The principles of
Cutting the Clutter
Results
Practical
application
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The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and
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