Basic HTML Version
/
55
APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
corresponding increase in equity. The fair value is measured at grant
date and recognised over the period during which the options vest.
The fair value at grant date is independently determined using the
Binomial option pricing model that takes into account the exercise
price, the term of the option, the vesting and performance criteria,
the impact of dilution, the non tradeable nature of the option,
the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free
interest rate for the term of the option.
The fair value of the options granted excludes the impact of any non
market vesting conditions (eg profitability and sales growth targets).
Non market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable. At each
balance sheet date, the Company revises its estimate of the number
of options that are expected to become exercisable. The employee
benefits expense recognised each period takes into account the
most recent estimate.
(v) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
(w) Earning per share
(i) Basic earnings per share
Basic earnings per share is determined by dividing the net profit or
loss attributable to owners of the Company by the weighted average
number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the
financial year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share by taking into account the
after tax effect of interest and other financing costs associated with
dilutive potential ordinary shares and the weighted average number
of shares assumed to have been issued for no consideration in
relation to dilutive potential ordinary shares.
(x) Dividends
Provision is made for the amount of any dividend declared,
determined or publicly recommended by the Directors at or before
the end of the financial year but not distributed at balance date.
(y) Rounding of amounts
The Company is of a kind referred to in Class Order 98/100, issued
by the Australian Securities and Investments Commission, relating
to the rounding off of amounts in the financial report. Amounts in
the financial report have been rounded off in accordance with that
Class Order to the nearest thousand dollars, or in certain cases, the
nearest dollar.
(z) Parent entity financial information
The financial information for the parent entity, APN News & Media
Limited, disclosed in note 35 has been prepared on the same basis
as the consolidated financial statements, except as set out below:
(i) Investments in subsidiaries
Investments in subsidiaries, are accounted for at cost in the financial
statements of APN News & Media Limited.
(ii) Tax consolidation legislation
APN News & Media Limited and its wholly-owned Australian
subsidiaries have formed a tax consolidated group. Each member
of the tax consolidated group accounts for their own current
and deferred tax amounts using the ‘separate taxpayer within
group’ approach.
In addition to its own current and deferred tax amounts, APN News
& Media Limited also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from available tax losses assumed
from controlled entities in the tax consolidated group.
Assets or liabilities arising under tax funding arrangements with
the tax consolidated entities are recognised as current amounts
receivable from or payable to other entities in the group. The
amounts receivable/payable under the tax funding arrangements
are due upon demand from the head entity. The head entity may
also require payment of interim funding amounts to assist with its
obligations to pay tax instalments.
(aa) Critical accounting judgements and key sources of
estimation uncertainty
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal
the related actual results. The estimates and assumptions that have
a significant risk of causing a material adjustment to the carrying
amounts of the assets and liabilities within the next financial year
are discussed below:
(i) Impairment
The Group annually tests whether goodwill and other non-amortising
intangible assets have suffered any impairment, in accordance with
the accounting policy stated in note 1(i). The recoverable amounts of
cash generating units have been determined based on value in use
calculations. These calculations require the use of assumptions. Refer
note 12 for details of these assumptions and the potential impact of
changes to these assumptions.
(ii) Property valuations
The Group periodically revalues land and buildings in accordance
with the accounting policy stated in note 1(p). These valuations are
based on available evidence at the time the valuation is conducted
but is subject to estimation.
(iii) Income taxes
The Group is subject to income taxes in Australia and jurisdictions
where it has foreign operations. Significant judgement is required
in determining the provision for income taxes. There are certain
transactions and calculations undertaken during the ordinary course
of business for which the ultimate tax determination is uncertain. The
Group estimates its tax liabilities based on the Group’s understanding
of the tax law. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such
differences will impact the current and deferred income tax assets
and liabilities in the period in which such determination is made.