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ASX Additional Information

Notes to the Financial Statements

FOR THE YEAR ENDED 30 JUNE 2008

NOTE 1 — SIGNIFICANT ACCOUNTING
POLICIES

Amalgamated Holdings Limited (“Parent Entity” or “Company”) is a
company domiciled in Australia. The consolidated financial report of
the Company for the year ended 30 June 2008 comprise the Parent
Entity and its subsidiaries (collectively referred to as the “Group”) and
the Group’s interest in associates and partnerships.

Amalgamated Holdings Limited is a company incorporated in Australia
and limited by shares. The shares are publicly traded on the Australian
Securities Exchange. The nature of the operations and principal
activities of the Group are described in Note 2.

The financial report was authorised by the Board of Amalgamated
Holdings Limited for issuance on 28 August 2008.

(a) Statement of compliance
The financial report is a general purpose financial report which has been
prepared in accordance with Australian Accounting Standards (“AASBs”)
(including Australian Interpretations) adopted by the Australian
Accounting Standards Board and the Corporations Act 2001.

The financial report also complies with International Financial
Reporting Standards and interpretations adopted by the International
Accounting Standards Board.

(b) Basis of preparation
The financial report is presented in Australian dollars, and the

functional currency of the Group is Australian dollars.
The financial report is prepared on the historical cost basis except
that the following assets and liabilities are stated at their fair value:
derivative financial instruments, financial instruments classified as
available-for-sale, share-based payments and investment properties.

Assets held for sale are stated at the lower of carrying amount and

fair value less costs to sell.
The preparation of a financial report in conformity with Australian
Accounting Standards requires management to make judgements,
estimates and assumptions that affect the application of policies and
reported amounts of assets, liabilities and income and expenses.
The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only
that period, or in the period of the revision and future periods if the
revision affects both current and future periods.

Judgements made by management in the application of AASBs that
have a significant effect on the financial report and estimates with a
significant risk of material adjustment in the next year are discussed
in Note 1(z).

The accounting policies set out below have been applied consistently

to all periods presented in these financial statements.
The accounting policies have been applied consistently by all entities
in the Group.

The Company is of a kind referred to in ASIC Class Order 98/100
dated 10 July 1998 (updated by Class Order 05/641 effective
28 July 2005 and Class Order 06/51 effective 31 January 2006)
and in accordance with the Class Order, amounts in the financial
report and directors’ report have been rounded off to the nearest
thousand dollars, unless otherwise stated.

The Company and Group have elected to early adopt the following
accounting standards and amendments:

•
Revised AASB 123 Borrowing Costs removes the option to
expense borrowing costs and requires that an entity capitalise
borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset as part of the
cost of that asset.
•
AI 13 Customer Loyalty Programmes addresses the accounting
by entities that operate, or otherwise participate in, customer
loyalty programmes for their customers. It relates to customer
loyalty programmes under which the customer can redeem
credits for awards such as free or discounted goods or services.
Certain comparative amounts have been reclassified to conform with
the current year’s presentation. In addition, the comparative income
statement has been represented as if an operation discontinued
during the current period had been discontinued from the start of
the comparative period (see Note 5).

The following standards, amendments to standards and
interpretations have been identified as those which may impact the
Group in the period of initial application. They were available for early
adoption at 30 June 2008, but have not been applied by the Group
in preparing these financial statements:

•
AASB 8 Operating Segments (“AASB 8”) replaced the presentation
requirements of segment reporting in AASB 114 Segment
Reporting. AASB 8 and the consequential amendments in AASB
2007-3 Amendments to Australian Accounting Standards arising
from AASB 8 [AASB 5, AASB 6, AASB 107, AASB 119, AASB
120, AASB 127, AASB 134, AASB 136, AASB1023 and AASB
1038] are applicable for annual reporting periods beginning on or
after 1 January 2009. AASB 8 and AASB 2007-3 may impact on
the disclosure of operating segments within the financial reports.
The Group has yet to determine the effect on the disclosure;
•
Revised AASB 101 Presentation of Financial Statements (“AASB
101”) introduces as a financial statement (formerly “primary”
statement) the “statement of comprehensive income”. The revised
standard does not change the recognition, measurement or
disclosure of transactions and events that are required by other
AASBs. The revised AASB 101 will become mandatory for the
Group’s 30 June 2010 financial statements. This revision to the
standard is only expected to impact disclosures contained within
the financial report;
•
Revised AASB 3 Business Combinations (“AASB 3”) changes the
application of acquisition accounting for business combinations
and the accounting for non-controlling (minority) interests. Revised
AASB 127 Consolidated and Separate Financial Statements
(“AASB 127”) changes the accounting for investments in
subsidiaries. The revised AASB 3 and AASB 127 must be early
adopted together. As there were no acquisitions during the year,
the Group does not expect early adoption would have a material
impact on the financial report;
•
AASB 2008-1 Amendments to Australian Accounting Standard —
Share-based Payment: Vesting Conditions and Cancellations
changes the measurement of share-based payments that contain
non-vesting conditions. AASB 2008-1 becomes mandatory for
the Group’s 30 June 2010 financial conditions. The Group
presently considers that the amending standard will not have a
material effect on the Group’s future financial report.

(c) Basis of consolidation
The consolidated financial statements comprise the financial statements
of the Parent Entity and Group as at 30 June each year end.