Transactions and Balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation
at period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the
statement of prot and loss and other comprehensive income,
except when they are deferred in equity as qualifying cash ow
hedges and qualifying net investment hedges or are attributable
to part of the net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are
presented in the statement of comprehensive income, within
nance costs. All other foreign exchange gains and losses are
presented in the statement of prot or loss on a net basis within
other income or other expenses.
Non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date
when the fair value was determined. Transaction differences on
assets and liabilities carried at fair value are reported as part of
the fair value gain or loss.
Group companies
On consolidation, the assets and liabilities of foreign operations
are translated into Australian dollars at the rate of exchange
prevailing at the reporting date and their statements of prot or
loss are translated at exchange rates prevailing at the dates of the
transactions. The exchange differences arising on translation for
consolidation purposes are recognised in other comprehensive
income. On disposal of a foreign operation, the component of
other comprehensive income relating to that particular foreign
operation is recognised in prot or loss.
Any goodwill arising on the acquisition of a foreign operation
and any fair value adjustments to the carrying amounts of assets
and liabilities arising on the acquisition are treated as assets and
liabilities of the foreign operation and translated at the spot rate
of exchange at the reporting date.
u) Segment Reporting
An operating segment is a component of the consolidated
group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses
that relate to transactions with any of the consolidated group’s
other components.
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identied as the Board of Directors.
Specically, the Group’s reportable segments under AASB 8 are
currently based on its geographic location, being the Australian
and Slovenian operations.
v) Revenue
Revenue is measured at the fair value of the consideration received
or receivable. The group recognises revenue when the amount
of revenue can be reliably measured, it is probable that future
economic benets will ow to the entity and specic criteria have
been met for each type of revenue as described below.
Sale of goods
Revenue from the sale of goods is recognised when the goods are
delivered and titles have passed, at which time all the following
conditions are satised:
the Group has transferred to the buyer the signicant risks and
rewards of ownership of the goods;
• the Group retains neither continuing managerial involvement
to the degree usually associated with ownership nor effective
control over the goods sold;
• the amount of revenue can be measured reliably;
it is probable that the economic benets associated with the
transaction will ow to the Group; and
• the costs incurred or to be incurred in respect of the
transaction can be measured reliably.
Interest income
Interest income is recognised on a proportional basis taking into
account the interest rates applicable to the nancial assets.
w) Government Grants
Government grants are recognised when there is a reasonable
assurance that the grant will be received and all attached
conditions will be compiled with. When the grant relates to
an expense item, it is recognised as income on a systematic
basis over the periods that the costs, which it is intended to
compensate, are expensed. When the grant relates to an asset,
it is recognised as income in equal amounts over the expected
useful life of the related asset.
x) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Ofce. In these
circumstances the GST is recognised as part of the cost of
acquisition of the asset, or as part of an item of the expense.
Receivables and payables in the statement of nancial position
are shown inclusive of GST.
Cash ows are presented in the consolidated statement of cash
ows on a gross basis, except for the GST component of investing
and nancing activities, which are disclosed as operating cash ows.
| Annual Report 2018
Notes to the Financial Statements