59
FLEXIGROUP LIMITED FINANCIAL REPORT 2011
ac. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of
the amount of associated GST, unless the GST incurred is
not recoverable from taxation authorities. In this case it is
recognised as part of the cost of acquisition of the asset
or as part of the expense.
In the balance sheets receivables and payables are stated
inclusive of the amount of GST receivable or payable, with
the exception of lease receivables, which are shown net
of GST on the rentals not yet due. The net amount of GST
recoverable from, or payable to, the taxation authority
is included with other receivables or payables in the
balance sheet.
Cash fows are presented on a gross basis. The GST
components of cash fows arising from investing or fnancing
activities which are recoverable from, or payable, to the
taxation authority are presented as operating cash fows.
ad. 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 of” of amounts in the
fnancial statements. Amounts in the fnancial statements
have been rounded of in accordance with that Class Order
to the nearest thousand dollars.
ae. Parent entity fnancial information
The fnancial information for the parent entity, FlexiGroup
Limited, disclosed in note 41 has been prepared on the same
basis as the consolidated fnancial statements, except as set
out below.
i Investments in subsidiaries
Investments in subsidiaries are accounted for at cost less
allowance for impairment in the fnancial statements of
FlexiGroup Limited.
ii Tax consolidation legislation
FlexiGroup Limited and its wholly owned Australian
controlled entities have implemented the tax consolidation
legislation.
The head entity, FlexiGroup Limited, and the controlled
entities in the tax consolidated group account for their own
current and deferred tax amounts. These tax amounts are
measured as if each entity in the tax consolidated group
continues to be a stand alone taxpayer in its own right.
In addition to its own current and deferred tax amounts,
FlexiGroup Limited also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused
tax losses and unused tax credits assumed from controlled
entities in the tax consolidated group.
The entities have also entered into a tax funding agreement
as detailed in note 6 (c).
af. New accounting standards
Certain new accounting standards have been published that
are not mandatory for 30 June 2011 reporting periods. The
Group’s assessment of the impact of these new standards
and interpretations is set out below.
(i)
AASB 9 Financial Instruments, AASB 2009–11
Amendments to Australian Accounting Standards arising
from AASB 9 and AASB 2010–7 Amendments to Australian
Accounting Standards arising from AASB 9 (December
2010) (efective from 1 January 2013)
AASB 9 Financial Instruments addresses the classifcation,
measurement and derecognition of fnancial assets and
fnancial liabilities. The standard is not applicable until
1 January 2013 but is available for early adoption.
There will be no impact on the Group’s accounting for
fnancial liabilities, as the new requirements only afect the
accounting for fnancial liabilities that are designated as at
fair value through proft or loss and the Group does not have
any such liabilities.
(ii)
Revised AASB 124 Related Party Disclosures and AASB
2009–12 Amendments to Australian Accounting Standards
(efective for annual reporting periods beginning on or
after 1 January 2011)
In December 2009 the AASB issued a revised AASB 124
Related Party Disclosures. It is efective for accounting
periods beginning on or after 1 January 2011 and must
be applied retrospectively. The amendment clarifes and
simplifes the defnition of a related party. The Group will
apply the amended standard from 1 July 2011. It is not
expected to have any efect on the Group’s or the parent
entity’s related party disclosures.
(iii)
AASB 1053 Application of Tiers of Australian
Accounting Standards and AASB 2010–2 Amendments
to Australian Accounting Standards arising from Reduced
Disclosure Requirements (efective from 1 July 2013)
On 30 June 2010 the AASB ofcially introduced a revised
diferential reporting framework in Australia. Under this
framework, a two-tier diferential reporting regime applies to
all entities that prepare general purpose fnancial statements.
FlexiGroup Limited is listed on the ASX and is therefore not
eligible to adopt the new Australian Accounting Standards
– Reduced Disclosure Requirements. As a consequence, the
two standards will therefore have no impact on the fnancial
statements of the Group.