NOTE 01
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
fair value of the plan assets. Any asset
resulting from this calculation is limited
to the present value of available refunds
and reductions in future contributions to
the plan.
The emergence of a deep high quality
corporate bond market has resulted in a move
from using the Australian Government Bond
rate to the new corporate bond market rate
as per the G100 when discounting employee
benefit liabilities as at 30 June 2015. This is
treated as a change in accounting estimate.
(z) 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.
(aa) Going concern
The consolidated financial statements have
been prepared on a going concern basis, as the
Director’s believe that the Group will be able to
meet the mandatory repayment terms of the
bond maturity and banking facilities 4(d).
At 30 June 2015, the Group has a net
deficiency of current assets to current
liabilities of $19.1m (2014: $248.6m). This
deficiency is largely due to a $250m Bond
maturing in April 2016. Notwithstanding this
deficiency, the Directors remain confident
that the Group will be able to meet its debts
as and when they fall due. The Directors are
of the opinion that the financial statements
are appropriately prepared on a going concern
basis having regard to the following:
As at 30 June 2015
•
•
The Group has net assets of $3,606.9m
(2014: $3,568.4m).
•
•
The Group generated cash from operating
activities of $457.1m (2014: $380.9m).
•
•
The Group expects to continue to generate
positive cash flows from operating activities
in the next twelve months.
•
•
The Group has $240m of unutilised
funds available through a Syndicated
Debt Facility Agreement (as detailed in
note10(c)).
•
•
The Group engages in active financial
risk management and an established
debit capital market programme which
are subject to ongoing governance at
Committee and Board level (as detailed in
note 10).
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