• Expected to be realised within twelve months after
the reporting period; or
• A cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classied as non-current.
A liability is current when it is:
• Expected to be settled in normal operating cycle;
• Held primarily for the purpose of trading;
• It is due to be settled within twelve months after
the reporting period; or
• There is no unconditional right to defer the settlement of the
liability for at least twelve months after the reporting period.
The group classies all other liabilities as non-current. Deferred tax
assets and liabilities are classied as non-current assets and liabilities.
q) Income Tax
The income tax expense or revenue for the period is the tax payable
on the current period’s taxable income based on the applicable income
tax rate for each jurisdiction adjusted by changes in the deferred
tax assets and liabilities attributable to temporary differences and
to unused tax losses.
The current income tax charge is calculated on the basis of the tax
laws enacted or substantively enacted at the end of the reporting
period in the countries where the company’s subsidiaries and
associates operate and generate taxable income.
Deferred income tax is provided on all temporary differences
at the statement of nancial position date, arising between the
tax bases of assets and liabilities and their carrying amounts in
the consolidated nancial statements, and are recognised for
all taxable temporary differences,
• Except where the deferred income tax liability arises from the
initial recognition of an asset or liability in a transaction that is not
a business combination and, at the time of the transaction, affects
neither the accounting prot nor taxable prot or loss; and
• In respect of taxable temporary differences associated with
investments in subsidiaries, associates and interests in joint
ventures, except where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets and
unused tax losses can be utilised:
• Except where the deferred income tax asset relating to
the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects
neither the accounting prot nor the taxable prot or loss; and
• In respect of taxable temporary differences associated with
investments in subsidiaries, associates and interests and joint
ventures, deferred tax assets are only recognised to the extent
that it is probable that the temporary differences will reverse
in the foreseeable future extent that it is probable that the
temporary differences can be utilised.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the statement
of nancial position date.
Income taxes relating to items recognised directly in equity are
recognised in equity and not in the statement of prot or loss and
other comprehensive income.
Tax Consolidation
The Company and its wholly-owned Australian subsidiaries
have formed an income tax consolidated group under the tax
consolidated legislation. Each entity in the group recognises its
own current and deferred tax assets and liabilities. Such taxes are
measured using the ‘stand-alone taxpayer’ approach to allocation.
The group notied the Australian Taxation Ofce that it had formed
an income tax consolidated group to apply from 21 October 2005.
The tax consolidated group has entered a tax funding agreement
whereby each company in the group contributes to the income tax
payable by the group in proportion to their contributions to the
group’s taxable income.
r) Employee Benets
Liabilities for wages and salaries, including non-monetary
benefits, annual leave and accumulating sick leave expected to
be settled within 12 months after the period end in which the
employees render the related service are recognised in respect
of employees’ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities
are settled. The liability for annual leave and accumulating sick
leave is recognised in the provision for employee benets. All other
short-term employee benet obligations are presented as payables.
s) Contributed Equity
Issued and paid up capital is recognised at the fair value of the
consideration received by the group. Any transaction costs arising
on the issue of ordinary shares are recognised directly in equity
as a reduction of the proceeds received.
t) Foreign Currency Translation
Functional and Presentation Currency
Items included in the nancial statements of each of the group’s
entities are measured using the currency of the primary economic
environment in which the entity operates (“the functional currency”).
The consolidated nancial statements are presented in Australian
dollars, which is the Company’s functional and presentation currency.
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Notes to the Financial Statements