Good Group (Australian RDR) Pty Ltd

Transcription

1 Good Group (Australian RDR) Pty Ltd Illustrative Australian company s financial report for December 07 (and 0 June 08) Complying with Australian Accounting Standards - Reduced Disclosure Requirements

2 Foreword Australian Accounting Standards incorporates a two tier reporting system for reporting entities required to prepare general purpose financial statements (GPFS). This differential reporting regime enables certain entities to minimise the costs involved in meeting financial reporting requirements by reducing the disclosures otherwise required by Australian Accounting Standards. Whether an entity is able to apply the reduced disclosure requirements is dependent upon whether or not it is considered to be publicly accountable. As January 08 draws near, the changes to accounting standards impacting financial years ending December 07 and 0 June 08 are minimal. Given the far reaching effects of implementing AASB 5 Revenue from Contracts with Customers and AASB 9 Financial Instruments for years beginning from January 08, management should be finalising their changes to systems and processes in transitioning to the new Standards. This new edition of Good Group (Australian RDR) Pty Ltd, previously Endeavour (RDR) Pty Ltd, provides illustrative financial statements prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements (RDR). It also illustrates, through use of shading, how these financial statements will differ (by providing less disclosure) compared to other entities that prepare general purpose financial reports complying with all disclosure requirements in Australian Accounting Standards (i.e., Tier ). The AASB s project aimed at clarifying and simplifying the Australian financial reporting framework continues. The project reconsiders the reporting framework, including which entities should prepare financial statements and the content within those financial statements. As part of that project, at the beginning of 07, the AASB issued Exposure Draft 77 Reduced Disclosure Requirements for Tier Entities. ED 77 proposes a new set of principles to be used by the AASB in determining Tier disclosures and the new RDR resulting from the application of those principles. The AASB plans to further discuss the proposals in 08. The amendments to Australian tax law which requires significant global entities (SGEs) to lodge GPFS to the Australian Taxation Office (ATO), unless already lodged with the Australian Securities & Investments Commission, are now in effect. The ATO has issued guidance on the application of the requirements, which will result in some entities transitioning from special purpose financial statements to GPFS. Our publication, Accounting update: ATO guidance on the provision of GPFS by SGEs, summarises the ATO s guidance. These illustrative financial statements can be used to assist in preparing a Tier GPFS. I trust this publication will prove useful when preparing GPFS under the reduced disclosure regime. Frank Palmer Partner and EY Oceania IFRS Services Leader Ernst & Young Australia Good Group (Australian RDR) Pty Ltd i

3 Abbreviations and key... iii... iv to annual report... Consolidated statement of profit or loss... Consolidated statement of comprehensive income... 5 Consolidated statement of financial position... 7 Consolidated statement of changes in equity... 9 Consolidated statement of cash flows... Notes to the consolidated financial statements... Directors' declaration... 6 Appendix A AASB 05 Application of tiers of Australian Accounting Standards... 7 RDR adoption and transition... 9 Good Group (Australian RDR) Pty Ltd ii

4 Abbreviations and key The following styles of abbreviation are used in this set of Illustrative Financial Statements: IAS.4 International Accounting Standard No., paragraph 4 IAS.BC International Accounting Standard No., Basis for Conclusions, paragraph IFRS.44 International Financial Reporting Standard No., paragraph 44 SIC 9.6 Standing Interpretations Committee Interpretation No. 9, paragraph 6 IFRIC 4.6 IFRS Interpretations Committee (formerly IFRIC) Interpretation No. 4, paragraph 6 IAS 9.IG.G. IAS 9.AG7 Commentary GAAP International Accounting Standard No. 9 Guidance on Implementing IAS 9 Section G: Other, paragraph G. International Accounting Standard No. 9 Appendix A Application Guidance, paragraph AG7 The commentary explains how the requirements of IFRS have been implemented in arriving at the illustrative disclosure Generally Accepted Accounting Principles/Practice IASB Interpretations Committee SIC AASB AASB Int CA 00A International Accounting Standards Board IFRS Interpretations Committee (formerly International Financial Reporting Interpretations Committee (IFRIC)) Standing Interpretations Committee Australian Accounting Standards that are issued by the Australian Accounting Standards Board (AASB). The numbering convention is as follows: AASB AASB 7 represents Australian Accounting Standards issued by the AASB that are equivalent to the IFRS issued by the IASB. For example, AASB 5 is the equivalent of IFRS 5. AASB 0 AASB 4 represents Australian Accounting Standards issued by the AASB that are equivalent to the IAS issued by the IASB. For example, AASB 08 is the equivalent of IAS 8. AASB 004 AASB 059 represents Australian Accounting Standards issued by the AASB that have no equivalent in IFRS. That is, they are Australian-specific reporting requirements. Australian Interpretations that are issued by the AASB. The numbering convention is as follows: AASB Interpretations represents Australian Interpretations issued by the AASB that are equivalent to the Interpretations issued by the IFRS Interpretations Committee. For example, AASB Interpretation 4 is the equivalent to Interpretation 4. AASB Interpretations 07 represents Australian Interpretations issued by the AASB that are equivalent to the Interpretations issued by the SIC. For example, AASB Interpretation 5 is the equivalent of SIC 5. AASB Interpretations 00 AASB 055 represents Australian Interpretations issued by the AASB that have no equivalent international Interpretation. That is, they are Australian-specific reporting requirements. Corporations Act 00, section 00A Reg M..0() Corporations Regulations 00, Chapter M, Regulation.0, paragraph ASIC CI RG Australian Securities & Investments Commission Corporations Instrument Australian Securities & Investments Commission Regulatory Guide ASX Australian Stock Exchange Listing Rules Chapter 4, Rule 0.5 Good Group (Australian RDR) Pty Ltd iii

5 Tiers of Australian Accounting Standards AASB 05 Application of tiers of Australian Accounting Standards introduces two tiers of reporting requirements for preparing general purpose financial statements: Tier : Australian Accounting Standards Tier : Australian Accounting Standards Reduced Disclosure Requirements Tier incorporates International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and includes requirements that are specific to Australian entities. Tier comprises the recognition and measurement requirements of Tier but substantially reduced disclosure requirements. Except for the presentation of a third statement of financial position in particular circumstances under Tier, the presentation requirements under Tier and Tier are the same. This document is a supplement to Good Group (Australia) Limited (November 07 edition) and contains the consolidated financial statements of a fictitious entity, Good Group (Australian RDR) Pty Ltd, an industrial company with subsidiaries (the Group). Good Group (Australian RDR) Pty Ltd is incorporated in Australia, with a reporting date of December 07. The entity applies Tier (reduced disclosure) requirements as described in AASB 05 Application of Tiers of Australian Accounting Standards and AASB 00- Amendments to Australian Accounting Standards arising from Reduced Disclosure, plus other amendments to Tier requirements subsequently issued by the AASB and effective at 0 November 07, while still complying with full AASB recognition and measurement requirements. How to use these illustrative financial statements to prepare entity-specific disclosures The enclosed financial statements contain full Australian Accounting Standards disclosures, highlighting those disclosures that are not required by entities applying the Tier requirements of AASB 05 and AASB 00-. In addition, blue text indicates a disclosure requirement specific for Tier entities. The financial statements are intended to illustrate the disclosure requirements of the Accounting Standards, including providing interpretive commentary where necessary. Other annual reporting information required by the Corporations Act 00 is not included. For a full illustrative annual report, refer to the November 07 version of Good Group (Australia) Limited. The financial statements are illustrative only and do not attempt to show all possible accounting and disclosure requirements. It is essential to refer to the relevant authoritative source and, where necessary, seek appropriate professional advice. Although the illustrative financial statements attempt to show the most common disclosure requirements for industrial companies, it should not be regarded as comprehensive. For a more comprehensive list of disclosure requirements, please refer to EY s Financial Reporting Standards Disclosure Checklist. Enquiries regarding specialised industries and areas of accounting (e.g., insurance) should be directed to an EY professional. Each section of the financial statements of the Group is cross-referenced to commentary. Source references to the authoritative literature are also provided. The commentary follows the disclosure contained in each section of the financial statements and is intended to explain the approach taken in providing the illustrative disclosure. The commentary has been highlighted or amended where relevant to reflect the Tier requirements. Notations shown in the right-hand margin of each page are references to accounting standards or other pronouncements that describe the specific disclosures. References made to International Financial Reporting Standards should be read as the Australian equivalent standard as set out in the Abbreviations and key section above. Where amending standards are referred to, the local standard title is used. Disclosures arising from Australian-specific accounting standards are captured within dashed boxes. Commentary is provided to explain the basis for the disclosure or to address alternative disclosures not included in the illustrative financial statements. In case of doubt, it is essential to refer to the relevant source material and, where necessary, to seek appropriate professional advice. Users of this publication are encouraged to prepare entity-specific disclosures. Transactions and arrangements other than those applicable to the Group may require additional disclosures. It should be noted that the illustrative financial statements of the Group are not designed to reflect disclosure requirements that apply mainly to regulated or specialised industries. For a more comprehensive list of disclosures, please refer to EY's Financial reporting standards disclosure checklist. Enquiries regarding specialised industries and areas of accounting (e.g., insurance, US GAAP) should be directed to an EY professional. Australian Accounting Standards as at 0 November 07 As a general approach, these illustrative financial statements do not early adopt standards or amendments before their effective date. The standards applied in these illustrative financial statements are those that were on issue as at 0 November 07 and effective for annual periods beginning on or after January 07. Standards issued, but not yet effective, as at January 07, have not been early adopted. It is important to note that these illustrative financial statements will require continual updating as standards are issued and/or revised. Good Group (Australian RDR) Pty Ltd iv

6 (continued) Users of this publication are cautioned to check that there has been no change in requirements of Australian Accounting Standards between 0 November 07 and the date on which their financial statements are authorised for issue. In accordance with paragraph 0 of AASB 08, specific disclosure requirements apply for standards and interpretations issued but not yet effective (see Note 4 of these illustrative financial statements). For the most recent list of pronouncements issued but not yet effective for each reporting date, see our latest edition of New Accounting Standards & Interpretations. Furthermore, if the financial year of an entity is other than the calendar year, new and revised standards applied in these illustrative financial statements may not be applicable. For example, the Group has applied AASB 06- Amendments to Australian Accounting Standards Disclosure Initiative: Amendments to AASB 07 for the first time in its 07 illustrative financial statements. An entity with a financial year that commences from, for example, October and ends on 0 September would not have applied this amendment in financial statements for the year-end 0 September 07, unless it voluntarily chose to early adopt the amendment. The disclosure requirements of the following Australian Accounting Standards are not applicable to the Group or have not been early adopted and have therefore not been illustrated in these financial statements: AASB AASB 4 AASB 6 AASB 8 AASB 9 AASB 4 AASB 5 AASB 6 AASB 7 AASB AASB 7 AASB 9 AASB AASB 4 AASB 4 AASB 004 AASB 0 AASB 08 AASB 09 AASB 049 AASB 050 AASB 05 AASB 05 AASB 05 AASB 055 AASB 056 AASB 057 AASB 058 AASB 059 AAS 5 Interpretation Interpretation 5 Interpretation 7 Interpretation Interpretation 4 Interpretation 5 Interpretation 9 Interpretation 0 Interpretation Interpretation Interpretation Interpretation 07 Interpretation 0 Interpretation 5 Interpretation 9 Interpretation Interpretation Interpretation 00 Interpretation 08 Interpretation 04 Interpretation 047 Interpretation 055 First Time Adoption of Australian Equivalents to International Financial Reporting Standards Insurance Contracts Exploration for and Evaluation of Mineral Resources Operating Segments* Financial Instruments Regulatory Deferral Accounts Revenue from Contracts with Customers Leases Insurance Contracts Construction Contracts Separate Financial Statements Financial Reporting in Hyperinflationary Economies Earnings per Share* Interim Financial Reporting Agriculture Contributions General Insurance Contracts Life Insurance Contracts Concise Financial Reports Whole of Government and General Government Sector Financial Reporting Administered Items Land Under Roads Disaggregated Disclosures Application of Tiers of Accounting Standards Budgetary Reporting Superannuation Entities Application of Australian Accounting Standards Income of Not-for-Profit Entities Service Concession Arrangements: Grantors Financial Reporting by Superannuation Plans Members Shares in Co operative Entities and Similar Instruments Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds Applying the Restatement Approach under AASB 9 Financial Reporting in Hyperinflationary Economies Service Concession Arrangements AASB 9 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Agreements for the Construction of Real Estate Extinguishing Financial Liabilities with Equity Instruments Stripping Costs in the Production Phase of a Surface Mine Levies Foreign Currency Transactions and Advance Consideration Uncertainty over Income Tax Treatments of the Euro Government Assistance No Specific Relation to Operating Activities Income Taxes Changes in the Tax Status of an Entity or its Shareholders Service Concession Arrangements: Disclosures Revenue Barter Transactions Involving Advertising Services Intangible Assets Web Site Costs Australian Petroleum Resource Rent Tax Contributions by Owners Made to Wholly-Owned Public Sector Entities Subscriber Acquisition Costs in the Telecommunications Industry Professional Indemnity Claims Liabilities in Medical Defence Organisations Accounting for Road Earthworks * Example disclosures prepared in accordance with these standards are included in Good Group (Australia) Limited. Good Group (Australian RDR) Pty Ltd v

7 (continued) Accounting policy choices Accounting policies are broadly defined in AASB 08 and include not just the explicit elections available in some standards, but also other conventions and practices that are adopted in applying principle-based standards. In some cases, Australian Accounting Standards permit more than one accounting treatment for a transaction or event. Preparers of financial statements should select the treatment that is most relevant to their business and circumstances as their accounting policy. AASB 08 requires an entity to select and apply its accounting policies consistently for similar transactions, events and/or conditions, unless an Australian Accounting Standard specifically requires or permits categorisation of items for which different policies may be appropriate. Where an Australian Accounting Standard requires or permits such categorisation, an appropriate accounting policy is selected and applied consistently to each category. Therefore, once a choice of one of the alternative treatments has been made, it becomes the entity s accounting policy and must be applied consistently. Changes in accounting policy should only be made if required by a standard or interpretation, or if the change results in the financial statements providing reliable and more relevant information. In this publication, when a choice is available in Australian Accounting Standards, the Group has adopted one of the treatments as appropriate to the circumstances of the Group. In these cases, the commentary provides details of which policy has been selected, the reasons for this policy selection, and, where appropriate, summarises the difference in the disclosure requirements. Financial review by management Many entities present a financial review by management that is outside the financial statements. Australian Accounting Standards do not require the presentation of such information, although paragraph of AASB 0 gives a brief outline of what may be included in an annual report. The IASB s IFRS Practice Statement, Management Commentary, provides a broad non-binding framework for presenting management commentary that relates to financial statements prepared in accordance with IFRS. If a company decides to follow the guidance in the Practice Statement, management is encouraged to explain the extent to which the Practice Statement has been followed. A statement of compliance with the Practice Statement is only permitted if it is followed in its entirety. Preparers of financial statements that comply with Australian Accounting Standards should note that other guidance on management commentary already exists in Australia (for example, ASIC Regulatory Guide 0 Disclosing non-ifrs financial information) which may take precedence over the IFRS Practice Statement. Further, the content of a financial review by management in relation to the financial statements is often determined by the requirements of the Corporations Act 00. Changes in the 07 edition of Good Group (Australian RDR) Pty Ltd annual financial statements The standards and interpretations listed below have become effective since October 06 for annual periods beginning on January 07. While the list of new standards is provided below, not all of these new standards will have an impact on these illustrative financial statements. To the extent these illustrative financial statements have changed since the 06 edition due to changes in standards and interpretations, we have disclosed the impact of those changes in Note.4. Other changes from the 06 edition have been made in order to reflect practice developments and to improve the overall quality of the illustrative financial statements. Changes to Australian Accounting Standards The following new standards and amendments (excluding those that apply only to not-for-profit entities) became effective as of January 07: AASB 06- Amendments to Australian Accounting Standards Recognition of Deferred Tax Assets for Unrealised Losses AASB 06- Amendments to Australian Accounting Standards Disclosure Initiative: Amendments to AASB 07 AASB 07- Amendments to Australian Accounting Standards Further Annual Improvements Cycle Caveat The names of people and corporations included in these illustrative financial statements are fictitious and have been created for the purpose of illustration only. Any resemblance to any person or business is purely coincidental. These financial statements are illustrative only and do not attempt to show all possible accounting and disclosure requirements. In case of doubt as to the requirements, it is essential to refer to the relevant source and, where necessary, seek appropriate professional advice. Although the illustrative financial statements attempt to show the most likely disclosure requirements for industrial entities, it should not be regarded as a comprehensive checklist of disclosure requirements. Good Group (Australian RDR) Pty Ltd vi

8 to annual report Consolidated statement of profit or loss... Consolidated statement of comprehensive income... 5 Consolidated statement of financial position... 7 Consolidated statement of changes in equity... 9 Consolidated statement of cash flows... Notes to the consolidated financial statements.... Corporate information.... Significant accounting policies.... Basis of preparation.... Basis of consolidation.... Summary of significant accounting policies....4 Changes in accounting policies and disclosures Correction of an error Significant accounting judgements, estimates and assumptions Segment information Capital management Group information Business combinations and acquisition of non-controlling interests Material partly-owned subsidiaries Interest in a joint venture Investment in an associate Fair value measurement Other income/expenses Other operating income Other operating expenses Finance costs Finance income Depreciation, amortisation, foreign exchange differences and costs of inventories included in the consolidated statement of profit or loss Employee benefits expense Research and development costs Components of OCI Administrative expenses Discontinued operations Income tax Earnings per share (EPS) Property, plant and equipment Investment properties Intangible assets Goodwill and intangible assets with indefinite lives Financial assets and financial liabilities Financial assets Financial liabilities: Interest-bearing loans and borrowings Hedging activities and derivatives Fair values Financial instruments risk management objectives and policies Inventories Good Group (Australian RDR) Pty Ltd

9 to annual report (continued). Trade and other receivables Cash and short-term deposits Issued capital and reserves Distributions made and proposed Provisions Government grants Deferred revenue GoodPoints transactions Pension and other post employment benefit plans Share-based payments Trade and other payables Commitments and contingencies Related party disclosures Standards issued but not yet effective Events after the reporting period Auditors' remuneration Information relating to Good Group (Australian RDR) Pty Ltd (the Parent)... 5 Directors' declaration... 6 Good Group (Australian RDR) Pty Ltd

10 Consolidated statement of profit or loss Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial financial position Consolidated statement of comprehensive income Consolidated statement of profit or loss Consolidated statement of profit or loss For the year ended December IAS.0(b) Restated* IAS.5(c) Notes $000 $000 IAS.5(d),(e) Continuing operations IAS.8A Sale of goods 6,97 4,55 IAS 8.5(b)(i) Rendering of services 7, 6,57 IAS 8.5(b)(ii) Rental income 7,404,77 Revenue 80,46 60,465 IAS.8(a) Cost of sales (6,549) (8,86) IAS.0 Gross profit 4,9,079 IAS.85, IAS.0 Other operating income.,45,548 IAS.0 Selling and distribution expenses (4,00) (,964) IAS.99, IAS.0 Administrative expenses.9 (8,48) (,56) IAS.99, IAS.0 Other operating expenses. (,554) (5) IAS.99, IAS.0 Operating profit,65 9,54 IAS.85, IAS.BC55-56 Finance costs. (,64) (,) IAS.8(b), IFRS 7.0 Finance income.4 6 IAS.8(a) Share of profit of an associate and a joint venture 9, IAS.8(c) Profit before tax from continuing operations,08 8,880 IAS.85 Income tax expense 4 (,098) (,) IAS.8(d), IAS.77 Profit for the year from continuing operations 8,00 6,647 IAS.85 Discontinued operations Profit/(loss) after tax for the year from discontinued operations 0 (88) IAS.8 (ea) IFRS 5.(a) Profit for the year 8,0 6,459 IAS.8A(a) Attributable to: Equity holders of the parent 7,94 6,0 IAS.8B (a) (ii) Non-controlling interests 88 9 IAS.8B (a)(i) 8,0 6,459 Earnings per share 5 IAS.66 Basic, profit for the year attributable to ordinary equity holders of the parent $0.8 $0. Diluted, profit for the year attributable to ordinary equity holders of the parent $0.8 $0. Earnings per share for continuing operations 5 Basic, profit from continuing operations attributable to ordinary equity holders of the parent $0.7 $0.4 Diluted, profit from continuing operations attributable to ordinary equity holders of the parent $0.7 $0. * Certain amounts shown here do not correspond to the 06 financial statements and reflect adjustments made, refer to Note.5. Good Group (Australian RDR) Pty Ltd

11 Consolidated statement of profit or loss Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial position Consolidated statement of comprehensive income Consolidated statement of profit or loss Consolidated statement of profit or loss (continued) Commentary IAS.0 suggests titles for the primary financial statements, such as statement of profit or loss and other comprehensive income or statement of financial position. Entities are, however, permitted to use other titles, such as income statement or balance sheet. The Group applies the titles suggested in IAS. There is no specific requirement to identify restatements to prior period financial statements on the face of the financial statements. IAS 8 requires details to be provided only in the notes. The term restatement is used here to refer to retrospective application of accounting policies, correction of errors, and reclassifications collectively. The Group illustrates how an entity may supplement the requirements of IAS 8 so that it is clear to the reader that amounts in the prior period financial statements have been adjusted in comparative period(s) of the current period financial statements. It should be noted that the fact that the comparative information is restated does not necessarily mean that there were errors and omissions in the previous financial statements. Restatements may also arise for other reasons, for example, retrospective application of a new accounting policy. IAS.8(a) requires disclosure of total revenue as a line item on the face of the statement of profit or loss. The Group also presents the various types of revenue on the face of the statement of profit or loss in accordance with IAS.85. IAS.99 requires expenses to be analysed either by their nature or by their function within the statement of profit or loss, whichever provides information that is reliable and more relevant. If expenses are analysed by function, information about the nature of expenses must be disclosed in the notes. The Group has presented the analysis of expenses by function. In Appendix A, the consolidated statement of profit or loss is presented with an analysis of expenses by nature. The Group presents operating profit in the statement of profit or loss; this is not required by IAS. The terms operating profit or operating income are not defined in IFRS. IAS.BC56 states that the IASB recognises that an entity may elect to disclose the results of operating activities, or a similar line item, even though this term is not defined. The entity should ensure the amount disclosed is representative of activities that would normally be considered to be operating. For instance, it would be inappropriate to exclude items clearly related to operations (such as inventory write-downs and restructuring and relocation expenses) because they occur irregularly or infrequently or are unusual in amount. Similarly, it would be inappropriate to exclude items on the grounds that they do not involve cash flows, such as depreciation and amortisation expenses (IAS.BC56). In practice, other titles, such as earnings before interest and tax (EBIT), are sometimes used to refer to an operating result. Such subtotals are subject to the new guidance included in IAS.85A. The Group has presented its share of profit of an associate and joint venture using the equity method under IAS 8 Investments in Associates and Joint Ventures after the line-item operating profit. IAS.8(c) requires share of the profit or loss of associates and joint ventures accounted for using the equity method to be presented in a separate line item on the face of the statement profit or loss. In complying with this requirement, the Group combines the share of profit or loss from associates and joint ventures in one line item. Regulators or standard-setters in certain jurisdictions recommend or accept share of the profit/loss of equity method investees being presented with reference to whether the operations of the investees are closely related to that of the reporting entity. This may result in the share of profit/loss of certain equity method investees being included in the operating profit, while the share of profit/loss of other equity method investees being excluded from operating profit. In other jurisdictions, regulators or standard-setters believe that IAS.8(c) requires that share of profit/loss of equity method investees be presented as one line item (or, alternatively, as two or more adjacent line items, with a separate line for the sub-total). This may cause diversity in practice. IAS.68 requires presentation of basic and diluted earnings per share (EPS) for discontinued operations either on the face of the statement of profit or loss or in the notes to the financial statements. The Group has elected to show this information with other disclosures required for discontinued operations in Note and to show the EPS information for continuing operations on the face of the statement of profit or loss. Good Group (Australian RDR) Pty Ltd 4

12 Consolidated statement of profit or loss Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial position Consolidated statement of comprehensive comprehensive income Consolidated statement of profit or loss Consolidated statement of comprehensive income For the year ended December IAS.49 IAS.5(c) IAS.8A IAS.0(b) Restated* IAS 8.8 Notes $000 $000 IAS.5(d),(e) IAS.90 IAS.6A Profit for the year 8,0 6,459 IAS.8A (a) Other comprehensive income IAS.8A Other comprehensive income to be reclassified to profit or loss in subsequent periods: Net gain on hedge of a net investment 78 IAS 9.0(a) Exchange differences on translation of foreign operations (46) (7) IAS. IAS.5(b) Net (loss)/gain on cash flow hedges 4 (7) IFRS 7.(c) Net (loss)/gain on available-for-sale financial assets 4 (58) IFRS 7.0(a)(ii) Share of other comprehensive income of an associate 0 (4) IAS.8A(b) Income tax relating to these items 68 (0) AASB.RDR.8. Net other comprehensive loss to be reclassified to profit or loss in subsequent periods (6) (9) IAS.8A Other comprehensive income not to be reclassified to profit or loss in subsequent periods: IAS 9.0(c) Remeasurement gains (losses) on defined benefit plans 9 69 (89) IAS 9. Revaluation of office properties in Australia IAS 6.9 Share of other comprehensive income of an associate 0 4 IAS.8A(b) Income tax relating to these items (79) 6 AASB.RDR.8. Net other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods 879 (7) IAS.8A Other comprehensive income/(loss) for the year, net of tax 46 (64) IAS.8A(b) Total comprehensive income for the year, net of tax 8,476 6,095 IAS.8A(c) Attributable to: Equity holders of the parent 8,88 5,856 IAS.8B (b) (ii) Non-controlling interests 88 9 IAS.8B (b) (i) 8,476 6,095 * Certain amounts shown here do not correspond to the 06 financial statements and reflect adjustments made, refer to Note.5. Good Group (Australian RDR) Pty Ltd 5

13 Consolidated statement of profit or loss Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial position Consolidated statement of comprehensive income Consolidated statement of profit or loss Consolidated statement of comprehensive income (continued) Commentary The Group has elected as an accounting policy to present two statements, a statement of profit or loss and a statement of comprehensive income, rather than a single statement of profit or loss and other comprehensive income combining the two elements. If a two-statement approach is adopted, the statement of profit or loss must be followed directly by the statement of comprehensive income. For illustrative purposes, the disclosure of a single statement of profit or loss and other comprehensive income is presented in. The different components of other comprehensive income (OCI) are presented on a net basis in the statement above. Therefore, an additional note is required to separately present the amount of reclassification adjustments and current year gains or losses (see Note.8). Alternatively, the individual components could have been presented within the statement of comprehensive income. An entity applying Australian Accounting Standards Reduced Disclosure Requirements shall disclose the aggregate amount of current and deferred income tax relating to items recognised in other comprehensive income (AASB RDR.8.). The Group has elected to present the deferred tax effects net on an individual basis. Therefore, additional note disclosures are required and provided in Note 4. Remeasurement gains and losses on defined benefit plans are recognised in OCI and transferred immediately to retained earnings (see IAS.96 and IAS 9.). IAS.8A requires that items that will be reclassified subsequently to profit or loss, when specific conditions are met, must be grouped on the face of the statement of comprehensive income. Similarly, items that will not be reclassified must also be grouped together. In order to make these disclosures, an entity must analyse whether its OCI items are eligible to be subsequently reclassified to profit or loss under IFRS. Under the requirements of IAS.8A and the Implementation Guidance to IAS, entities must present the share of the OCI items of equity method investees (i.e., associates and joint ventures), in aggregate as single line items within the to be reclassified and the not to be reclassified groups. As at December 07 the Group s associate has available-for sale financial assets and an office building located in Australia that is accounted for under the revaluation model. Consequently, the Group presents items of other comprehensive income related to the associate in two separate line items in the consolidated statement of comprehensive income. Good Group (Australian RDR) Pty Ltd 6

14 jhj Consolidated statement of profit or loss Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial position Consolidated statement of comprehensive comprehensive income Consolidated statement of profit or loss Consolidated statement of financial position As at December As at IAS.0(a) IAS.0(f) January 06 IAS.49, IAS.5(c) Restated* Restated* IAS 8.8 Notes $000 $000 $000 IAS.5(d),(e) Assets IAS.40A, IAS.40B Current assets IAS.60, IAS.66 Cash and short-term deposits 7, 4,96,066 IAS.54(i) Inventories,76 4,585 6,06 IAS.54(g) Trade and other receivables 5,67,90 5,57 IAS.54(h) Prepayments IAS.55 Other current financial assets IAS.54(d), IFRS ,4 6,09 6,09 Assets held for sale,554 IAS.54(j), IFRS ,895 6,09 6,09 Non-current assets IAS.60 Property, plant and equipment 6,979 4,9 8,940 IAS.54(a) Investment properties 7 8,89 7,98 7,09 IAS.54(b) Intangible assets 8 6,09,46,4 IAS.54(c) Investment in an associate and a joint venture 9,0,87,56,878 IAS.54(e), IAS 8.8 Non-current financial assets 0 6,45,49,69 IAS.54(d), IFRS 7.8 Deferred tax assets IAS.54(o), IAS.56 57,886 4,45,6 Total assets 8,78 0,54 96,64 Liabilities and equity Current liabilities IAS.60, IAS.69 Trade and other payables 9,076 0,47 9,57 IAS.54(k) Interest-bearing loans and borrowings 0,460,775 4,555 IAS.54(m), IFRS 7.8(g) Other current financial liabilities 0, IAS.54(m), IFRS 7.8 Government grants IAS.55, IAS 0.4 Deferred revenue IAS.55 Income tax payable,5,56 4,65 IAS.54(n) Provisions IAS.54(l) Non-cash distribution liability ,084 7,80 9,7 Liabilities directly associated with the assets held for sale,5 IAS.54(p), IFRS 5.8 4,09 7,80 9,7 Non-current liabilities IAS.60 Interest-bearing loans and borrowings 0 0,46,70 9,574 IAS.54(m) Other non-current financial liabilities IAS.54(m), IFRS 7.8 Provisions 6, IAS.54(l) Government grants 7,00, IAS 0.4 Deferred revenue IAS.55 Net employee defined benefit liabilities 9,050,977,549 IAS.55, IAS.78(d) Deferred tax liabilities 4,9,089,08 IAS.54(o), IAS.56,84 7,64 4,44 Total liabilities 76,05 55,46 54,7 Good Group (Australian RDR) Pty Ltd 7

15 Consolidated statement of profit or loss Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial position Consolidated statement of comprehensive income Consolidated statement of profit or loss Consolidated statement of financial position (continued) As at December As at IAS.0(a) IAS.0(f) January 06 IAS.49, IAS.5(c) Restated* Restated* IAS 8.8 Notes $000 $000 $000 IAS.5(d),(e) Equity Issued capital 4 6,559 9,88 9,88 Treasury shares 4 (508) (654) (774) Other capital reserves 4, Retained earnings,59 7,885,58 Other components of equity (649) (5) (4) Reserves of a disposal group held for sale 46 Equity attributable to equity holders of the parent 60,0 47,05 4,97 IAS.54(r), IAS.78(e) Non-controlling interests, IAS.54(q) Total equity 6,70 47,79 4,505 Total liabilities and equity 8,78 0,54 96,64 * Certain amounts shown here do not correspond to the 06 financial statements and reflect adjustments made, refer to Note.5. Commentary IAS requires an entity to present a statement of financial position at the beginning of the earliest comparative period when: it applies an accounting policy retrospectively; it makes a retrospective restatement of items in its financial statements; or when it reclassifies items in its financial statements (IAS.0(f)), and the change has a material effect on the statement of financial position. In these situations, IAS.40A states that an entity must present, at a minimum, three statements of financial position, two of each of the other statements and the related notes. The three statements of financial position include the statement of financial position as at the current annual period year end, the statement of financial position as at the previous annual period year end, and the statement of financial position as at the beginning of the previous annual period ( the opening balance sheet, often referred to as the third balance sheet ). As the Group has restated the financial statements to retrospectively correct an error, the Group has included a third balance sheet as at January 06. Such an additional balance sheet is only required if the adjustment to opening balances is considered to be material (IAS.40A(b)). However, the notes related to the third balance sheet are not required, nor are additional statements of profit or loss and other comprehensive income, changes in equity or cash flows (IAS.40C). In accordance with IAS.60, the Group has presented current and non-current assets, and current and non-current liabilities, as separate classifications in the statement of financial position. IAS does not require a specific order of the two classifications. The Group has elected to present current assets and liabilities before non-current assets and liabilities. IAS requires entities to present assets and liabilities in order of liquidity when this presentation is reliable and more relevant. Good Group (Australian RDR) Pty Ltd 8

16 Consolidated statement of changes in equity Issued capital (Note 4) Treasury shares (Note 4) Other capital reserves (Note 4) Attributable to the equity holders of the parent Retained earnings Cash flow hedge reserve Availablefor-sale reserve Foreign currency translation reserve Asset revaluation surplus Reserve of disposal group held for sale Total Noncontrolling interests Total equity IAS.0(c ) IAS.49 IAS.5(b),(c) IAS.06(d) $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 IAS.5(d),(e) As at January 07 9,88 (654) 944 7,885 (70) (444) 47, ,79 Profit for the period 7,94 7, ,0 IAS.06(d)(i) Other comprehensive income (Note 4) 57 (5) (70) (5) IAS.06(d)(ii) Total comprehensive income 8,99 (5) (70) (5) 6 8, ,476 IAS.06(a) Depreciation transfer for office proprerties in Australia 80 (80) IAS.96 Discontinued operations (Note ) (46) 46 IFRS 5.8 Issue of share capital (Note 4) 7,0 7,0 7,0 IAS.06(d)(iii) Exercise of options (Note 4) IAS.06(d)(iii), Share-based payments (Note 0) IFRS.50 AASB.RDR50. Transaction costs (Note 7) () () () IAS.9, Cash dividends (Note 5) (,8) (,8) (0) (,4) IAS.09 IAS.07 Acquisition of a subsidiary (Note 7),547,547 IAS.06(d)(iii) Acquisition of non-controlling interests (Note 7) (90) (90) (5) (5) IAS.06(d)(iii) At December 07 6,559 (508),80,59 (58) (4) (495) ,0,40 6,70 Commentary For equity-settled share-based payment transactions, IFRS.7 requires entities to recognise an increase in equity when goods or services are received. However, IFRS Share-based Payment does not specify where in equity this should be recognised. The Group has chosen to recognise the credit in other capital reserves. The acquisition of an additional ownership interest in a subsidiary without a change of control is accounted for as an equity transaction in accordance with IFRS 0 Consolidated Financial Statements. Any excess or deficit of consideration paid over the carrying amount of the non-controlling interests is recognised in equity of the parent in transactions where the non-controlling interests are acquired or sold without loss of control. The Group has elected to recognise this effect in retained earnings. With respect to the subsidiary to which these non-controlling interests relate, there were no accumulated components recognised in OCI. If there had been such components, those would have been reallocated within equity of the parent (e.g., foreign currency translation reserve or available-for-sale reserve). IFRS 5.8 requires that items recognised in OCI related to discontinued operations must be separately disclosed. The Group presents this effect in the statement of changes in equity above. However, presentation of such items within discontinued operations does not change the nature of the reserve. Generally, reclassification to profit or loss will only occur if and when required by IFRS. The Group recognises remeasurement gains and losses arising on defined benefit pension plans in OCI in accordance with IAS 9 Employee Benefits. As they will never be reclassified into profit or loss, they are immediately recorded in retained earnings (refer to the statement of comprehensive income). IAS 9 does not require separate presentation of those components in the statement of changes in equity but an entity may choose to present the remeasurement gains and losses in a separate reserve within the statement of changes in equity. The amounts presented as changes in the asset revaluation surplus and the available-for-sale reserve include a share of other comprehensive income of the associate, which relates to the revaluation of an office building in Australia and the remeasurement of available-for-sale financial assets. IAS specifically requires that entities must present the share of other comprehensive income items of their equity method investees, in aggregate, as a single line items within the to be reclassified and the not to be reclassified groups. IAS 8 Investments in Associates and Joint Ventures, IAS and IFRS do not provide specific guidance on how the investor should present its accumulated share of other comprehensive income of equity-accounted investees. The Guidance on implementing IAS contains an example in which the accumulated property, plant and equipment revaluation gain is included into the revaluation surplus of the investor. Good Group applies a similar presentation of accumulated items of other comprehensive income of its associate. However, as current IFRS do not contain specific requirements on this issue, other presentation approaches may also be acceptable. 9 Good Group (Australian) Pty Ltd

17 Consolidated statement of changes in equity (continued) For the year ended December 06 (restated*) Issued capital (Note 4) Treasury shares (Note 4) Attributable to the equity holders of the parent Other capital reserves (Note 4) Retained earnings Cash flow hedge reserve Availablefor-sale reserve Foreign currency translation reserve Total Noncontrolling interests Total equity IAS.0(c ) IAS.49 IAS.5(b),(c) IAS 8.8 IAS.06(d) $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 IAS.5(d),(e) As at January 06 9,88 (774) 566 4,8 (94) (7) 4, ,05 Adjustment on correction of error (net of tax) (Note.5) (700) (700) (700) As at January 06 (restated*) 9,88 (774) 566,58 (94) (7) 4, ,505 Profit for the period as reported in the 06 financial statements 7,70 7,70 9 7,509 Adjustment on correction of error (net of tax) (Note.5) (,050) (,050) (,050) IAS.06(b) Restated profit for the period 6,0 6,0 9 6,459 IAS.06(d)(i) Other comprehensive income (Note 4) (7) 4 (7) (64) (64) IAS.06(d)(ii) Total comprehensive income 5,947 4 (7) 5, ,095 IAS.06(a) Exercise of options (Note 4) IAS.06(d)(iii), Share-based payments (Note 0) IFRS.50 Dividends (Note 5) (,600) (,600) (49) (,649) IAS.07 Non-controlling interests arising on a business combination (Note 7) 4 4 IAS.06(d)(iii) At December 06 (restated*) 9,88 (654) 944 7,885 (70) (444) 47, ,79 * Certain amounts shown here do not correspond to the 06 financial statements and reflect adjustments made, refer to Note.5. IAS.0 Commentary There is no specific requirement to identify adjustments made retrospectively on the face of the financial statements, except for the effect of a retrospective application or restatement on each component of equity (IAS.06(b)). IAS 8 requires details to be given only in the notes. By labelling the comparatives Restated, the Group illustrates how an entity may supplement the requirements of IAS 8 so that it is clear to the user that adjustments to the amounts in prior financial statements have been reflected in the comparative periods as presented in the current period financial statements. It should be noted that the fact that the comparative information is restated does not necessarily mean that there were errors and material omissions in the previous financial statements. Restatements may also arise for other reasons, for example, retrospective application of a new accounting policy (IAS.40A(a)). 0 Good Group (Australian RDR) Pty Ltd

18 Consolidated statement of cash flows For the year ended December Restated* IAS.0(d) IAS.5(c) Note $000 $000 IAS.5(d),(e) IAS 7.0, Operating activities IAS 7.8(a) Receipts from customers 7, 5,776 Payments to suppliers (74,79) (84,6) Payments to employees (5,85) (5,048) Interest received 6 IAS 7. Interest paid (484) (,05) IAS 7. Income tax paid (,) (,00) IAS 7.5 Net cash flows from operating activities,0,5 Investing activities IAS 7.0, IAS 7. Proceeds from sale of property, plant and equipment,990,9 IAS 7.6(b) Purchase of property, plant and equipment 6 (0,6) (7,67) IAS 7.6(a) Purchase of investment properties 7 (,6) (,9) IAS 7.6(a) Purchase of financial instruments (,054) (5) IAS 7.6(c) Proceeds from sale of financial instruments 45 IAS 7.6(d) Development expenditures 8 (587) (90) IAS 7.6(a) Acquisition of a subsidiary, net of cash acquired 7 0 (,450) IAS 7.9 Receipt of government grants 7,95 64 Net cash flows used in investing activities (9,848) (7,8) Financing activities IAS 7.0, IAS 7. Proceeds from exercise of share options IAS 7.7(a) Acquisition of non-controlling interests 7 (5) IAS 7.4A Transaction costs on issue of shares 4 () IAS 7.7(a) Payment of finance lease liabilities (5) (76) IAS 7.7(e) Proceeds from borrowings 6,4 4,87 IAS 7.7(c) Repayment of borrowings (,74) (4,50) IAS 7.7(d) Dividends paid to equity holders of the parent 5 (,97) (,600) IAS 7. Dividends paid to non-controlling interests (0) (49) IAS 7., IFRS.B0(a) Net cash flows from/(used in) financing activities,8 (904) Net increase in cash and cash equivalents 4,84,64 Net foreign exchange difference 40 6 IAS 7.8 Cash and cash equivalents at January,66 8,6 Cash and cash equivalents at December 7,440,66 IAS 7.45 * Certain amounts shown here do not correspond to the 06 financial statements and reflect adjustments made, refer to Note.5. Commentary IAS 7.8 allows entities to report cash flows from operating activities using either the direct method or the indirect method. The Group presents its cash flows using the direct method. There is no specific requirement to identify adjustments made retrospectively on the face of the financial statements, except for the effect of a retrospective application or restatement on each component of equity (IAS.06(b)). IAS 8 requires details to be given only in the notes. By labelling the comparatives Restated, the Group illustrates how an entity may supplement the requirements of IAS 8 so that it is clear to the user that adjustments to the amounts in prior financial statements have been reflected in the comparative periods as presented in the current period financial statements. IAS 7. permits interest paid to be shown as operating or financing activities and interest received to be shown as operating or investing activities, as deemed relevant for the entity. The Group has elected to classify interest received and interest paid as cash flows from operating activities. Good Group (Australian RDR) Pty Ltd Consolidated statement of cash flows Consolidated statement changes in equity Consolidated statement of financial position Consolidated statement of comprehensive income Consolidated statement of profit or loss