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APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these
consolidated financial statements are set out below. These policies
have been consistently applied to all the years presented, unless
otherwise stated. The financial statements are for the consolidated
entity consisting of APN News & Media Limited and its subsidiaries.
(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 (AASB) and the
Corporations Act 2001
. The financial report
also complies with International Financial Reporting Standards as
issued by the International Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared under the historical
cost convention, as modified by the revaluation of certain financial
assets and liabilities (including derivative instruments) and certain
classes of property, plant and equipment.
(b) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and
liabilities of APN News & Media Limited (Company or parent entity)
and its subsidiaries as defined in AASB 127
Consolidated and
Separate Financial Statements
. APN News & Media Limited and its
subsidiaries together are referred to in this financial report as the
Group or the consolidated entity.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are de-consolidated from the date
that control ceases.
The acquisition method of accounting is used to account for business
combinations by the Group (refer note 1(h)).
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Accounting
policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are
shown separately in the consolidated income statement, statement
of comprehensive income, statement of changes in equity and
balance sheet respectively.
The effects of all transactions with non-controlling interests are
recorded in equity if there is no change in control. Where there is a
loss of control, any remaining interest in the entity is remeasured to
fair value and a gain or loss is recognised in the income statement.
Any losses are allocated to the non-controlling interest in subsidiaries
even if the accumulated losses should exceed the non-controlling
interest in the individual subsidiary’s equity.
(ii) Associates and joint ventures
Associates are all entities over which the Group has significant
influence but not control or joint control. Investments in associates
are accounted for 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.
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 reserves.
The cumulative post-acquisition movements are adjusted against
the carrying amount of the investment. Dividends received from
associates are recognised in the consolidated financial statements
as a reduction in the carrying amount of the investment.
When the Group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other unsecured
receivables, the Group does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its
associates are eliminated to the extent of the Group’s interest
in the associates.
The proportionate interests in assets, liabilities and results of joint
ventures have been incorporated in the financial statements under
the appropriate headings.
The accounting policies of associates and joint ventures are
consistent with the policies adopted by the Group in all material
respects.
(c) Segment reporting
The Group identifies operating segments based on the format of
internal reports which are reviewed by key management personnel
in assessing performance and in allocating resources.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s
entities are measured using the currency of the primary economic
environment in which the entity operates (functional currency). The
consolidated financial statements are presented in Australian dollars,
which is APN News & Media Limited’s functional and presentation
currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation at
period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or
loss, except when deferred in equity as qualifying cash flow
hedges and qualifying net investment hedges or are attributable
to part of the net investment in a foreign operation.
(iii) Group entities
The results and financial position of all the Group entities that have
a functional currency different from the presentation currency are
translated into the presentation currency as follows:
–
–
assets and liabilities are translated at the closing rate at the date
of the balance sheet;
–
–
income and expenses are translated at average exchange rates;
and
–
–
all resulting exchange differences are recognised in other
comprehensive income.