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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
(continued)
(vi) Transit and outdoor advertising systems
Transit and outdoor advertising systems are accounted for as
identifiable assets and are brought to account at cost. The Directors
believe these assets have indefinite lives and accordingly, no
amortisation has been provided against the carrying amount.
(vii) Brands
Brands are accounted for as identifiable assets and are brought
to account at cost. The Directors have considered the geographic
location, legislative environment and legal, technical and other
commercial factors likely to impact on the useful lives of the
brands and consider that they have indefinite lives. Accordingly,
no amortisation has been provided against the carrying amount.
(viii) Lease intangibles
Lease intangibles are accounted for as identifiable assets and are
brought to account at cost. These assets represent capitalised outdoor
site leases and are being amortised over the estimated lease term of
the site leases, including expected renewal periods.
(r) Trade and other payables
Trade payables, including accruals not yet billed, are recognised
when the consolidated entity becomes obliged to make future
payments as a result of a purchase of assets or services. Trade
payables are unsecured and are generally settled within 30 days.
(s) Borrowings
Loans, bonds and convertible notes are carried at their principal
amounts, which represent the present value of future cash flows
associated with servicing the debt. Interest is accrued over the period
it becomes due and is recorded as part of trade and other payables.
Ancillary costs incurred in connection with the arrangement of
borrowings are deferred and amortised over the period of the
borrowing. These ancillary costs are netted off against the carrying
value of borrowings in the balance sheet.
Borrowings are classified as current liabilities unless the Group has
an unconditional right to defer settlement of the liability for at least
12 months after the reporting period.
(t) Provisions
Provisions for restructuring costs and make good obligations are
recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow
of resources will be required to settle the obligation and the amount
has been reliably estimated. Provisions are not recognised for future
operating losses.
Provisions are measured at the present value of management’s
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used
to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific
to the liability. The increase in the provision due to the passage of
time is recognised as interest expense.
(u) Employee benefits
(i) Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits,
annual leave and accumulating sick leave, expected to be settled
within 12 months from the reporting date are recognised in trade and
other payables in respect of employees’ services up to the reporting
date and are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are
recognised when the leave is taken and measured at the rates paid
or payable.
(ii) Long service leave
The liability for long service leave expected to be settled within
12 months of the reporting date is recognised in the provision for
employee benefits and is measured in accordance with the above
paragraph. The liability for long service leave expected to be settled
more than 12 months from the reporting date is recognised in the
provision for employee benefits and measured as the present value
of expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration
is given to expected future wage and salary levels, experience
of employee departures and periods of service. Expected future
payments are discounted using market yields at the reporting date
on national government bonds with terms to maturity and currency
that match, as closely as possible, the estimated future cash outflows.
(iii) Short-term incentive plans
A liability for short-term incentives is recognised in trade and other
payables when there is an expectation of settlement and at least one
of the following conditions is met:
–
–
there are contracted terms in the plan for determining the
amount of the benefit;
–
–
the amounts to be paid are determined before the time of
completion of the financial report; or
–
–
past practice gives clear evidence of the amount of the
obligation.
Liabilities for short-term incentives are expected to be settled within
12 months and are measured at the amounts expected to be paid
when they are settled.
(iv) Defined benefit superannuation plans
A liability or asset in respect of defined benefit superannuation plans
is recognised in the balance sheet, and is measured as the present
value of the defined benefit obligation at the reporting date plus
unrecognised actuarial gains (less unrecognised actuarial losses), less
the fair value of the superannuation fund’s assets at that date and
any unrecognised past service cost. The present value of the defined
benefit obligation is based on expected future payments which
arise from membership of the fund to the reporting date, calculated
annually by independent actuaries using the projected unit credit
method. Consideration is given to expected future wage and salary
levels, experience of employee departures and periods of service.
Actuarial gains and losses are recognised, under the corridor method
as outlined in AASB 119
Employee Benefits
, in the income statement
in the periods in which they arise. The portion recognised is the
excess of the unrecognised gain/loss at the start of the year over the
greater of 10% of the value of assets and 10% of the defined benefit
obligation at the start of the year, divided by the expected future
service of members.
(v) Share-based payments
Share-based compensation benefits are provided to employees via
the Executive and Director Option Plan.
The fair value of options granted under the Executive and Director
Option Plan is recognised as an employee benefits expense with a