Notes to the Financial Statements
For the year ended 30 June 2009
1. CORPORATE INFORMATION
The Financial Report of AVJennings Limited and its subsidiary companies for the year ended 30 June 2009 was authorised for issue in accordance with a resolution of the Directors on 28 September 2009.
AVJennings Limited is a Company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange and the Singapore Exchange through the Central Limited Order Book (CLOB). The Ultimate Parent is SC Global Developments Limited, a company incorporated in Singapore which owns 50.03% of the ordinary shares in AVJennings Limited.
The Consolidated Entity (‘AVJennings’ or ‘Consolidated Entity’) consists of AVJennings Limited (the ‘Company’ or the ‘Parent’) and its subsidiary companies. The nature of the operations and principal activities of the Consolidated Entity are described in the Directors’ Report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
This Financial Report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards
and other authoritative pronouncements of the Australian Accounting Standards Board. The Financial Report has also been prepared on a historical cost basis, except for derivative financial instruments which have been measured at fair value.
The Financial Report is presented in Australian Dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated.
a) Compliance with IFRS
The Financial Report complies with Australian Accounting Standards and the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
b) New accounting standards and interpretations
Certain new or amended accounting standards and interpretations have been published that are not mandatory for the 30 June 2009 reporting period. The Consolidated Entity’s assessment of the impact of these new standards and interpretations is set out as follows.
AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8, may have an impact on the Consolidated Entity’s segment disclosures as segment information included in internal management reports is likely to be more detailed than that currently reported under AASB 114 Segment Reporting. The full impact of the standard has not yet been determined. This standard is applicable to annual reporting periods beginning on or after 1 January 2009 and is therefore applicable to the Consolidated Entity for the annual reporting period beginning on 1 July 2009.
AASB 2008-1 Amendments to Australian Accounting Standards
Share-based Payments: Vesting Conditions and Cancellations
is mandatory for the Consolidated Entity from 1 July 2009. It clarifies that vesting conditions are service conditions and performance conditions only and that other features of a share-based payment are not vesting conditions. It specifies that all cancellations, whether by the entity or other parties, should receive the same accounting treatment. The revised standard is not expected to affect the accounting treatment of the Consolidated Entity’s share-based payments.
AASB 101 (Revised) Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 introduces as a financial statement the “Statement of Comprehensive Income”. The revised standard does not change the recognition, measurement or disclosure of transactions and events that are required by other standards. This standard is applicable to annual reporting periods beginning on or after 1 January 2009 and will become mandatory for the Consolidated Entity’s annual reporting period ending on 30 June 2010.
Revised AASB 123 Borrowing Costs removes the option to expense borrowing costs and requires that an entity capitalises borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset as part of that asset. The revised standard will become mandatory for the Consolidated Entity’s annual reporting period ending on 30 June 2010. This is unlikely to have an impact on the Consolidated Entity as it currently capitalises all borrowing costs directly attributable to the acquisition, construction or production of qualifying assets.