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ASX Additional Information

 (v) Finance costs
Finance costs include interest, amortisation of discounts or premiums
relating to borrowings, amortisation of ancillary costs incurred in
connection with arrangement of borrowings, and lease finance
charges. Ancillary costs incurred in connection with the arrangement
of borrowings are capitalised and amortised over the life of the
borrowings.

Finance costs are expensed as incurred unless they relate to
qualifying assets. Qualifying assets are assets which take more than
12 months to get ready for their intended use or sale. Where funds
are borrowed specifically for the acquisition, construction or
production of a qualifying asset, the amount of borrowing costs
capitalised is that incurred in relation to that borrowing, net of any
interest earned on those borrowings. Where funds are borrowed
generally, borrowing costs are capitalised using a weighted average
interest rate applicable to the entity’s borrowings during the period.

(w) Taxation
(i) Income tax
Income tax on the Income Statement for the periods presented
comprises current and deferred tax. Income tax is recognised
in the Income Statement except to the extent that it relates to
items recognised directly in equity, in which case it is
recognised in equity.

Current tax is the expected tax payable on the taxable income
for the year, using tax rates enacted or substantially enacted at
the balance sheet date, and any adjustment to tax payable in
respect of previous years.

Deferred tax is provided using the balance sheet liability
method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. The
following temporary differences are not provided for: initial
recognition of goodwill; the initial recognition of assets or
liabilities that affect neither accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent
that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively
enacted at the balance sheet date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle
current tax liabilities and assets on a net basis or their tax
assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the
related tax benefit will be realised.

(ii) Tax consolidation regime
The Company is the head entity in the tax-consolidated group
comprising all the Australian wholly-owned subsidiaries. The
head entity recognises all of the current tax liabilities of the
tax-consolidated group.

The tax-consolidated group has entered into a tax funding
agreement that requires Australian wholly-owned subsidiaries
to make contributions to the head entity for current tax liabilities
arising from external transactions occurring after the
implementation of tax consolidation.

Under the tax funding agreement, the contributions are
calculated using a “group allocation method” so that the
contributions are equivalent to the tax balances generated
by external transactions entered into by wholly-owned
subsidiaries. The contributions are payable as set out in the
agreement and reflect the timing of the head entity’s obligations
to make payments for tax liabilities to the relevant tax
authorities.

The Company recognises deferred tax assets arising from
unused tax losses of the tax-consolidated group to the extent
that it is probable that future taxable profits of the tax-
consolidated group will be available against which the asset
can be utilised. Any subsequent period adjustments to deferred
tax assets arising from unused tax losses as a result of revised
assessments of the probability of recovery are recognised by
the Company only.

(x) Segment reporting
A segment is a distinguishable component of the Group that is
engaged either in providing products or services (“business
segment”), or in providing products or services within a particular
economic environment (“geographical segment”), which is subject to
risks and rewards that are different from those of other segments.

(y) Earnings per share
Basic earnings per share (“EPS”) is calculated by dividing the profit for
the period attributable to members of the Parent Entity by the
weighted average number of ordinary shares of the Parent Entity.

Diluted EPS adjusts the figures used in the determination of basic
EPS to take into account the after-income tax effect of interest and
other financing costs associated with dilutive potential ordinary shares
and the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary
shares. Dilutive potential ordinary shares comprise share options
granted to employees.

(z) Accounting estimates and judgements
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations of
future events that may have a financial impact on the Group and that
are believed to be reasonable under the circumstances.

The estimates and judgements that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed below: