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ASX Additional Information

 (i) Subsidiaries
Subsidiaries are entities controlled by the Parent Entity. Control
exists when the Parent Entity has the power, directly or
indirectly, to govern the financial and operating policies of an
entity so as to obtain benefits from its activities. In assessing
control, potential voting rights that are presently exercisable or
convertible are taken into account. The financial statements of
subsidiaries are included in the consolidated financial
statements from the date that control commences until the date
that control ceases.

Investments in subsidiaries are carried at their cost of
acquisition, less any impairment losses recognised, in the
Parent Entity’s financial statements.

(ii) Associates
Associates are those entities for which the Group has
significant influence, but not control, over the financial and
operating policies. The consolidated financial statements
include the Group’s share of the total recognised gains and
losses of associates on an equity accounted basis, from the
date that significant influence commences until the date that
significant influence ceases. The Group’s share of movements
in reserves is recognised directly in consolidated reserves.
When the Group’s share of losses exceeds its interest in an
associate, the Group’s carrying amount is reduced to nil and
recognition of further losses is discontinued except to the
extent that the Group has incurred legal or constructive
obligations or made payments on behalf of an associate.

In the Parent Entity’s financial statements, investments in
associates are initially recognised at cost, being the fair value of
the consideration given and including acquisition charges
associated with the investment. Where necessary, the cost is
adjusted for any subsequent impairment.

(iii) Partnerships
In the consolidated financial statements, investments in
partnerships are accounted for using equity accounting
principles. Investments in partnerships are carried at the lower
of the equity accounted amount and recoverable amount after
adjustment for revisions arising from notional adjustments
made at the date of acquisition.

The Group’s share of partnerships’ net profit or loss is
recognised in the consolidated Income Statement from the date
joint control commenced until the date joint control ceases. The
Group’s share of movements in reserves are recognised directly
in consolidated reserves.

(iv) Transactions eliminated on consolidation
Intragroup balances, and any unrealised gains and losses or
income and expenses arising from intragroup transactions, are
eliminated in preparing the consolidated financial statements.

Unrealised gains arising from transactions with associates and
partnerships are eliminated to the extent of the Group’s interest
in the entity.

Unrealised losses are eliminated in the same way as unrealised
gains, but only to the extent that there is no evidence of
impairment.

Gains and losses are recognised as the contributed assets are
consumed or sold by the associates or partnerships or, if not
consumed or sold by the associate or partnership, when the
Group’s interest in such entities is sold.

(d) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign
exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the
balance sheet date are translated to Australian dollars at the
foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the Income
Statement. Non-monetary assets and liabilities that are
measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the
transaction. Non-monetary assets and liabilities denominated in
foreign currencies that are stated at fair value are translated to
Australian dollars at foreign exchange rates ruling at the dates
the fair value was determined.

(ii) Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill
and fair value adjustments arising on consolidation, are
translated to Australian dollars at foreign exchange rates ruling
at the balance sheet date. The revenues and expenses of
foreign operations are translated to Australian dollars at rates
approximating the foreign exchange rates ruling at the dates of
the transactions. Foreign exchange differences arising on
retranslation are recognised in the foreign currency translation
reserve. When a foreign operation is disposed of, in part or in full,
the relevant amount in the reserve is transferred to profit or loss.

(iii) Net investment in foreign operations
Exchange differences arising from the translation of the net
investment in foreign operations, and the effective portion of
related hedges are taken to the reserve. They are released to
profit or loss as an adjustment to profit or loss on disposal.

Foreign exchange gains and losses arising from a monetary
item receivable from or payable to a foreign operation, the
settlement of which is neither planned or likely in the
foreseeable future, are considered to form part of a net
investment in a foreign operation and are recognised directly
in equity in the foreign currency translation reserve.

(e) Derivative financial instruments
The Group uses derivative financial instruments to hedge its exposure
to foreign exchange and interest rate risks arising from operating,
financing activities and investing activities. In accordance with its
treasury policy, the Group does not hold or issue derivative financial
instruments for trading purposes.

Derivative financial instruments are recognised at fair value. The gain or
loss on remeasurement to fair value is recognised immediately in profit
or loss. However, where derivatives qualify for hedge accounting,
recognition of any resultant gain or loss depends on the nature of the
item being hedged (refer Note 1(f)).

The fair value of interest rate swaps is the estimated amount that the
Group would receive or pay to terminate the swap at the balance
sheet date, taking into account current interest rates and the
creditworthiness of the swap counterparties. The fair value of forward
exchange contracts is their quoted market price at the balance sheet
date, being the present value of the quoted forward price.