Home' Slater and Gordon Annual Report : Slater and Gordon AR 2014 Contents SLATER & GORDON LIMITED AND CONTROLLED ENTITIES
ABN 93 097 297 400
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 1: BASIS OF PREPARATION (Continued)
Principles of consolidation
The consolidated financial statements are those of the consolidated entity, comprising the financial statements of
the parent entity and of all entities which the parent has the power to control the financial and operating policies
so as to obtain benefits from its activities.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies. Adjustments are made to bring into line any dissimilar ac counting policies which
All inter-company balances and transactions, including any unrealised profits or losses have been eliminated on
consolidation. Subsidiaries are fully consolidated from the date on which control is established. They are
de-consolidated from the date that control ceases.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions
with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interest to reflect their relative interests in the subsidiary. Any
difference between the amount of the adjustment to non-controlling interests and any consideration paid or
received is recognised in a separate reserve with equity attributable to owners of the Company.
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is internally provided to
the Managing Director, who is the Group’s chief operating decision maker.
An operating segment is a component of the Group that engages in busine ss activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s
other components. All operating segment results are regularly reviewed by the Group’s Managing Director t o
make decisions about resources to be allocated to the segment and to assess its performance .
Segment results that are reported to the Managing Director include items directly attributable to a segment, as
well as those that can be allocated on a reasonable basis.
Foreign currency translation
Functional and presentation currency
Items included in the financial 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
financial statements are presented in Australian dollars, which is the Company’s functional and presentational
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 year end exchange rates of monetary assets and liabilities deno minated in
foreign currencies are recognised in profit or loss, except when they are deferred in equity as qualifying cash
flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign
Foreign exchange gains and losses that relate to borrowings are presented in the income statement within finance
costs except when they are deferred in equity as qualifying net investment hedges. All other foreign exchange
gains and losses are presented in the income statement 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. Translation differences o n assets and liabilities carried at fair
value are reported as part of the fair value gain or loss. Non-monetary items in a foreign currency that are
measured in terms of historical cost are translated using the exchange rate at the date of the transactio n.
Slater and Gordon Limited – Annual Report 2014
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