AS AT 30 JUNE 2011
60
Notes to the Financial Statements (continued)
1. Summary of signifcant accounting policies
(continued)
(iv)
AASB 2010–3 Amendments to Australian Accounting
Standards arising from the Annual Improvements
Project and AASB 2010–4 Further Amendments to
Australian Accounting Standards arising from the Annual
Improvements Project (efective for annual periods
beginning on or after 1 July 2010/1 January 2011)
In June 2010, the AASB made a number of amendments
to Australian Accounting Standards as a result of the IASB’s
annual improvements project. The Group does not expect
that any material adjustments will be necessary as the result
of applying the revised rules.
(v)
IFRS 13 Fair Value Measurement (efective
1 January 2013)
IFRS 13 was released in May 2011. The AASB is expected
to issue an equivalent Australian standard shortly. IFRS 13
explains how to measure fair value and aims to enhance
fair value disclosures. The Group does not use fair value
measurements extensively. It is therefore unlikely that
the new rules will have a signifcant impact on any of
the amounts recognised in the fnancial statements.
However, application of the new standard will impact the
type of information disclosed in the notes to the fnancial
statements. At this stage, the Group does not intend to
adopt the new standard before its operative date, which
means that it would be frst applied in the annual reporting
period ending 30 June 2014.
(vi)
Revised IAS 1 Presentation of Financial Statements
(efective 1 July 2012)
In June 2011, the IASB made an amendment to IAS 1
Presentation of Financial Statements. The AASB is expected
to make equivalent changes to AASB 101 shortly. The
amendment requires entities to separate items presented
in other comprehensive income into two groups, based
on whether they may be recycled to proft or loss in the
future. It will not afect the measurement of any of the
items recognised in the balance sheet or the proft or loss
in the current period. The Group intends to adopt the new
standard from 1 July 2012.
(vii)
AASB 2011–4 Amendments to Australian Accounting
Standards to Remove Individual Key Management
Personnel Disclosure Requirements (efective 1 July 2013)
In July 2011 the AASB decided to remove the individual key
management personnel (KMP) disclosure requirements from
AASB 124 Related Party Disclosures, to achieve consistency
with the international equivalent standard and remove
a duplication of the requirements with the Corporations
Act 2001. While this will reduce the disclosures that are
currently required in the notes to the fnancial statements,
it will not afect any of the amounts recognised in the
fnancial statements. The amendments apply from 1 July
2013 and cannot be adopted early. The Corporations Act
requirements in relation to remuneration reports will remain
unchanged for now, but these requirements are currently
subject to review and may also be revised in the near future.
2. Critical accounting estimates
Estimates and judgements are continually evaluated and are
based on historical experience and other factors, including
expectations of future events that may have a fnancial
impact on the entity and that are believed to be reasonable
under the circumstances.
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the
future. The resulting accounting estimates will, by defnition,
seldom equal the related actual results. The estimates and
assumptions that have a signifcant risk of causing a material
adjustment to the carrying amount of assets and liabilities
within the next fnancial year are discussed below.
i. Estimation of unguaranteed residuals on leases
The Group estimates the value of unguaranteed lease
residuals based on its prior experience for similar contracts.
ii. Allowance for losses
The Group estimates losses incurred on its loans and lease
receivables in accordance with the policy set out in note 1(k).
iii. Assessment of impairment of goodwill and investment
in subsidiaries
Under the accounting standards, the Group is required to
perform an annual assessment as to whether there has
been any impairment of its goodwill. In addition, the Group
is required to perform an impairment assessment of other
assets in the event it identifes an indicator of impairment.
Details of the basis of performance of the assessment is set
out in note 16.
iv. Fair value of fnancial instruments
All derivatives are recognised and measured at fair value.
The derivatives are valued using valuation techniques that
utilize observable market inputs. The fair value of fnancial
instruments is included within note 25.