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ASX Additional Information

Recoverable value of plant and equipment

The Group has undertaken assessments of whether plant and
equipment at cinema sites could be deemed to be impaired. These
assessments involve an estimation of future trading performance to
determine the recoverable amounts.

The Group has also previously recognised impairment write-downs for
a number of cinema sites. Where trading circumstances improve at a
site, an assessment of recoverable value is made to determine if an
impairment loss can be reversed, net of depreciation that would have
been incurred had no impairment loss been recognised. These
determinations also require estimates and assumptions with regard to
the future trading performance of those sites.

Contingent assets and liabilities

Also refer to Note 31 for estimates and judgement made in relation to
contingent assets and liabilities.

Critical accounting judgements in applying the Group’s
accounting policies — investment properties

In the year to 30 June 2006, the Group acquired two properties
which adjoin the State Theatre Building in Market and George Streets,
Sydney at a cost of $81,522,000. The Group receives rental income
in respect of both properties acquired. Pending completion of
planning for the long term use of these combined properties,
including the State Theatre property, these properties have not been
classified as investment properties. These properties have been
accounted for using the cost basis rather than the fair value basis
which is applied for investment properties.

(AA)Discontinued operations

A discontinued operation is a component of the Group’s business
that represents a separate major line of business that has been
disposed of or is held for sale. Classification as a discontinued
operation occurs upon disposal or when the operation meets the
criteria to be classified as held for sale, if earlier. When an operation
is classified as a discontinued operation, the comparative Income
Statement is restated as if the operation had been discontinued from
the start of the comparative period.

NOTE 2 — SEGMENT REPORTING

Segment information is presented in respect of the Group’s business
and geographical segments.

Inter-segment pricing is on an arm’s length basis.

Segment results, assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items mainly comprise income earning
assets and revenue, interest bearing loans and borrowings and
expenses, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the
period to acquire segment assets that are expected to be used for
more than one period.

Business segments

The Group comprises the following main business segments, based
on the Group’s management reporting system and the differing risks
and rewards associated with each business.

Cinema Exhibition Domestic

Includes the Australian cinema exhibition operations.

Cinema Exhibition International

Includes the International cinema exhibition operations in Germany
and the United Arab Emirates. The Groups’ interest in a cinema site in
The Netherlands was sold effective 20 February 2008.

Entertainment Technology

Includes theatre equipment supply and servicing and the manufacture
of film processors and related equipment and the Group’s investment
in the Atlab group.

Hotels

Includes the ownership, operation and management of hotels in
Australia and overseas.

Thredbo Alpine Resort

Includes all the operations of the resort including property
development activities.

Leisure/Attractions

Includes ancillary leisure and other activities including Featherdale
Wildlife Park and The State Theatre. The sale of Pier 26 Bar & Café
was completed in the prior year on 25 June 2007, refer Discontinued
Operations — Note 5.

Strategic Investments

Includes the Groups’ 50% interest in Roadshow Distributors Pty
Limited to the date of sale of that interest being 15 August 2007,
refer Discontinued Operations — Note 5.

Property and Other Investments

Includes property rental, investment properties and available-for-sale
investments.

Geographical segments

In presenting information on the basis of geographical segments,
segment revenue is based on the geographical location of customers.
Segment assets are based on the geographical location of the assets.
The Group operates in Australia and New Zealand, Europe and the
United Arab Emirates.