LWG - assets.kpmg · disclosures and of new of disclosures that were previously not required for GPFS-Tier 2-RDR. We have not sought to include these in the above publications. Details

This publication provides a visual illustration of the potential disclosures required by ED 295 Simplified Disclosures for For-profit and Not-for-profit Tier 2 Entities compared to the current Australian Accounting Standards - Reduced Disclosure Requirements.

Disclosures shaded in yellow will no longer be required while disclosures shaded in blue will be required but in a different way, e.g. more aggregated.

This publication is for illustrative purposes only and its use cannot and does not purport to guarantee that the financial report will comply with all aspects of the relevant guidance. Example

L

kpmg.com.au

Basis of preparation – Current GPFS-Tier 2-RDR This publication has been prepared to assist in assessing the potential impact of the proposals contained in ED 295 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (ED 295).

ED 295 proposes replacing the current Reduced Disclosure Requirements (RDR) in the Australian Accounting Standards (AAS) with a new, separate disclosure standard (the Simplified Disclosures Standard or SD) that would apply to all entities that report under Tier 2.

Example Reduced Disclosure Requirements Pty Ltd is a fictitious corporation involved in general business. It is a for-profit private sector entity. This publication provides a visual illustration of the potential disclosures required by ED 295 compared to financial statements prepared in accordance with current Australian Accounting Standards (GPFS-Tier 2-RDR).

We trust you will find it a useful resource in considering the ED 295 proposals and responding to the AASB’s request for comments.

Publication approach

The approach taken to identify relevant disclosures is:

disclosures shaded in yellow will not be required when preparing GPFS-Tier 2-SD disclosures shaded in blue will be required when preparing GPFS-Tier 2-SD, but in a different

form, e.g. more aggregated or less detailed or prescriptive.

Disclosures that are not shaded in yellow or blue will therefore form the basis of financial statements prepared for GPFS-Tier 2-SD entities.

ED 295 requires a small number of new additional disclosures – as compared to full GPFS-Tier 1 disclosures and of new of disclosures that were previously not required for GPFS-Tier 2-RDR. We have not sought to include these in the above publications.

Details of these new disclosures can be found in an AASB staff paper – Comparison of RDR disclosures with proposed AASB 10XX Simplified Disclosures for Tier 2 Entities.

Background to ED 295

The Simplified Disclosures Standard has been developed based on the disclosures included in the IFRS for SMEs Standard. The proposals include the principles and methodology to be used in determining Tier 2 disclosures going forward.

They do not impact recognition and measurement (R&M) requirements of AAS. Nor does it change which entities are required to apply Tier 2.

The presentation requirements under the Simplified Disclosures Standard are the same as for the current GPFS-Tier 1 requirements except for:

the presentation of a third statement of financial position under GPFS-Tier 1 the separate presentation of assets (disposal groups) classified as held for sale the option of not presenting a statement of changes in equity if the only changes to equity

during the periods, for which the financial statements are presented, arise from profit or loss, payment of dividends, corrections of errors, and changes in accounting policy.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

https://www.aasb.gov.au/admin/file/content105/c9/ACCED295_08-19.pdfhttps://www.aasb.gov.au/admin/file/content105/c9/ACCED295_08-19.pdfhttps://www.aasb.gov.au/admin/file/content142/c2/ACCED295_08-19_Staff_Analysis_RDR_Comparison.pdfhttps://www.aasb.gov.au/admin/file/content142/c2/ACCED295_08-19_Staff_Analysis_RDR_Comparison.pdf

Basis of preparation – Current GPFS-Tier 2-RDR (continued) Who is impacted?

All entities that are required to report under Tier 2 by AASB 1053 Application of Tiers of Australian Accounting Standards. That is, it will become the disclosure standard for all for-profit and not-for-profit entities reporting under Tier 2.

It will impact both:

entities currently preparing GPFS-Tier 2 financial statements – different disclosures: some more, some less

for-profit private sector entities that will no longer be able to prepare SPFS and need to prepare GPFS-Tier 2 – more than SPFS, including for example, related party disclosures, income taxes.

Further details relating to ED 295 are discussed in 19RU-012 Tier 2 Simplified Disclosures – ED 295.

When is change expected?

The AASB’s current expectation is that the Simplified Disclosures Standard proposed by ED 295 will be effective for annual periods ending on or after 30 June 2021.

The AASB is seeking comment on the proposals in November 2019.

Illustrative only

This publication is for illustrative purposes only and its use cannot and does not purport to guarantee that the financial report will comply with all aspects of the relevant guidance.

This publication is based on Guide to annual financial statements – illustrative disclosures (September 2018) (‘Original Publication’). The copyright in the Original Publication is vested in KPMG IFRG Limited and KPMG IFRG Limited retains all rights to the Original Publication.

The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).

KPMG website

The Australian financial reporting framework is undergoing its most significant overhaul in three-plus decades. To understand how the different pieces fit together, the respective entities affected and related application dates we have developed a website – visit kpmg.com/au/gpfs.

Relevant updates will be incorporated on an ongoing basis.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

https://home.kpmg/au/en/home/insights/2019/08/19ru-012-tier-2-simplified-disclosures-ed-295.htmlhttps://home.kpmg/au/en/home/insights/2019/08/19ru-012-tier-2-simplified-disclosures-ed-295.htmlhttp://kpmg.com/au/gpfs

Example Reduced Disclosure Requirements Proprietary Limited

Consolidated statement of financial position For the year ended 30 June 2019

In dollars Note 30 June 2019 30 June 2018 *Restated

Assets

Cash and cash equivalents Trade and other receivables Contract Assets Inventories Other investments, including derivatives Current tax assets Prepayments

Total current assets

13 12

5 11 17

Trade and other receivables Other investments, including derivatives Equity-accounted investees Deferred tax assets Property, plant and equipment Intangible assets and goodwill

Total non-current assets

Total assets

12 17 16 10 14

Liabilities

Bank overdraft Trade and other payables Contract Liabilities Loans and borrowings Current tax liabilities Provisions Deferred income/revenue

Total current liabilities

13 20

5 19

22 21

Loans and borrowings Employee benefits Trade and other payables Provisions Deferred income/revenue Deferred tax liabilities

Total non-current liabilities

Total liabilities

Net assets

Equity

Share capital Reserves Retained earnings

19 9

20 22 21 10

Total equity attributable to equity holders of the Company

Non-controlling interests

Total equity 18

* See Note 34 The Group has initially applied AASB 15 and AASB 9 at 1 July 2018. Under the transition methods chosen, comparative information has not been restated, except for the separate recognition of forward points as a cost of hedging in OCI and accumulated in a ‘cost of hedging reserve’ as a separate component within equity.

The Notes on pages 13 to 82 are an integral part of these consolidated financial statements.

© 2018 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. 7


Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2019

In dollars Note 2019 2018 *Restated

Continuing operations

Revenue Cost of sales

Gross profit

Other income Selling and distribution expenses Administrative expenses Impairment loss on trade receivables and contract assets1

Research and development expenses Other expenses

Operating profit

Finance income Finance costs

Net finance costs

5

6

6

7

Share of profit of equity-accounted investees, net of tax

Profit before tax

Income tax expense

Profit

16

10

Other comprehensive income

Items that will never be reclassified to profit or loss

Revaluation of property, plant and equipment Equity investments at FVOCI – net change in fair value Related tax

14

Items that are or may be reclassified to profit or loss

Foreign operations – foreign currency translation differences Equity-accounted investees – share of other comprehensive income Net investment hedge – net loss Cash flow hedges – effective portion of changes in fair value Cash flow hedges – reclassified to profit or loss Cost of hedging reserve – changes in fair value Cost of hedging reserve – reclassified to profit or loss Available-for-sale financial assets – net change in fair value Debt investments at FVOCI – net change in fair value Debt investments at FVOCI – reclassified to profit or loss Related tax

16

23 23 23

Other comprehensive income, net of tax

Total comprehensive income

* See Note 34 The Group has initially applied AASB 15 and AASB 9 at 1 July 2018. Under the transition methods chosen, comparative information has not been restated, except for the separate recognition of forward points as a cost of hedging in OCI and accumulated in a ‘cost of hedging reserve’ as a separate component within equity, and separately presenting impairment losses on trade receivables and contract assets.


An entity that presents the analysis of expenses by function or by nature in the statement of profit or loss and OCI may face challenges in determining how this presentation interacts with the specific requirements to present the effect of some events or circumstances as a single amount in the statement of profit or loss and OCI – e.g. impairment losses under AASB 9. Judgement is applied in determining an appropriate presentation, ensuring that the chosen presentation is not misleading and is relevant to the users’ understanding of its financial statements. [AASB 101.82(ba), 85, 31, 97, 99,Insights 4.1.20.40]


1

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Consolidated statement of cash flows For the year ended 30 June 2019

In dollars Note 2019 2018

Cash flows from operating activities

Cash receipts from customers Cash paid to suppliers and employees

Cash generated from operating activities Interest paid Income taxes paid

Net cash from operating activities

Cash flows from investing activities

Interest received Dividends received Proceeds from sale of property, plant and equipment Proceeds from sale of investments Acquisition of subsidiary, net of cash acquired Acquisition of equity-accounted investee Acquisition of property, plant and equipment Acquisition of other investments Dividends from equity-accounted investees

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issue of share capital Proceeds from issue of redeemable preference shares Proceeds from settlement of derivatives Proceeds from exercise of share options Transaction costs related to loans and borrowings Acquisition of non-controlling interests Repayment of borrowings Payment of finance lease liabilities Dividends paid

Net cash from (used in) financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at 1 July Effect of movements in exchange rates on cash held

Cash and cash equivalents at 30 June** 13

** Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management.




Primary RDR Notes 1. Reporting entity 2. Basis of accounting 3. Functional and presentation currency 4. Use of judgements and estimates 5. Revenue 6. Income and expenses 7. Net finance costs 8. Share-based payment arrangements 9. Other employee benefits 10. Income taxes 11. Inventories 12. Trade and other receivables 13. Cash and cash equivalents 14. Property, plant and equipment 15. Intangible assets and goodwill 16. Equity-accounted investees 17. Other investments, including derivatives 18. Capital and reserves 19. Loans and borrowings 20. Trade and other payables 21. Deferred income / revenue 22. Provisions 23. Financial instruments – Fair values and

risk management 24. List of subsidiaries 25. Acquisition of subsidiary 26. Operating leases 27. Commitments 28. Contingencies 29. Related parties 30. Subsequent events 31. Deed of cross guarantee 32. Parent entity disclosures 33. Basis of measurement 34. Change in accounting policy 35. Significant accounting policies

Notes to the consolidated financial statements For the year ended 30 June 2019

RDR Supplement 13 A. Discontinued operation 87 13 B. Defined benefit plans 88 13 C. Biological assets 90 13 D. Disposal group held for sale 91 14 E. Investment property 92 15 F. Convertible notes 93 15 G. Construction contracts 95 17 H. Government grants 95 18 I. Repurchase and reissue of share capital 96 19 22 23 24 24 26 27 28 29 32 34 34 35

39 40 40 42 42 42 43 44 45 48 49 49 62


nting Standard ced Disclosure t

IAS 1.10(e)

IAS 1.51(a)-(c)

AASB 1054.8(b)



1. Reporting entity

These consolidated financial statements comprise Example Reduced Disclosure Requirements Proprietary Limited (the Company) and its subsidiaries (together referred to as the ‘Group’) and are as at and for the year ended 30 June 2019.

The Group is a for-profit entity.

2. Basis of accounting1

In the opinion of the directors, the Group is not publicly accountable. These consolidated financial statements are Tier 2 general purpose consolidated financial statements that have been prepared in accordance with Australian Accou s – Redu Australian Accounting Standards – Reduced Disclosure Requiremen s adopted by the Australian Accounting Standards Board and the Requirements [Corporations Act 2001/ Australian Charities and Not-for-profits Commission Act 2012]. These consolidated financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements.

This is the first set of the Group’s annual financial statements in which AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments have been applied. Changes to significant accounting policies are described in Note 34.

They were authorised for issue by the Board of Directors on [date]. Details of the Group’s accounting policies are included in Note 35.

3. Functional and presentation currency

These consolidated financial statements are presented in Australian dollars, which is the Group’s functional currency.

[[If relevant]The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in accordance with that instrument, all financial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated].

4. Use of judgements and estimates

In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

(a) Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the consolidated financial statements is included in the following notes:

IAS 1.112(a)

AASB 1054.7,8,9 S296, 297

IAS 1.17

IAS 1.51(d)-(e)

IAS 1.122

1 An entity may be required to prepare GPFS as a result of the change in tax legislation. The basis of preparation will need to include the reason for moving to GPFS and the impact. Refer to 18TU-006 for guidance on moving from SPFS to GPFS. Refer to KPMG’s Guide: Provision of GPFS to ATO for further guidance relating to this obligation.


-

The effect of initially applying AASB 15 on the Group’s revenue from contracts with customers is described in Note 34. Due to the transition method chosen in applying AASB

arative information has not been restated to reflect the new requireme

2019 2018

Revenue from contracts with customers2 Other revenue: Hedging gains [Detail as applicable]

Total revenue

nts.

IAS 1.122

IAS 1.125, 129-130

129 130

IFRS 15.113(a) IFRS 15.113(a)

1 IFRS 15.119(b), 127–128

2 IFRS 15.113, IAS 1.29–30, 85, Insights 4.2.480.25



4. Use of judgements and estimates (continued)

(a) Judgements (continued)

Note 5 – revenue recognition: whether revenue from made-to-order products is recognised over time or at a point in time; commission revenue: whether the Group acts as an agent in the transaction rather than as the principal;

Note 35(a)(v) – classification of the joint arrangement;

Notes 19(d) and 35(n)(i) – leases: whether an arrangement contains a lease;

Notes 24(a) and 35(a)(ii) – consolidation: whether the Group has de-facto control over an investee; and

Notes 26(a) and 35(n) – lease classification.

(b) Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 30 June 2019 is included in the following notes:

Note 5 - revenue recognition: estimate of expected returns

Note 10(g) – recognition of deferred tax assets: availability of future taxable profit against which deductible temporary differences and tax losses carried forward can be used;

Note 12(b) – measurement of ECL allowance for trade receivables and contract assets: key assumptions in determining the weighted-average loss rate;

Note 15(c) – impairment test: key assumptions underlying recoverable amounts;

Notes 22 and 28 – recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources; and

Note 25(b) – acquisition of subsidiary: fair value measured on a provisional basis.

5. Revenue1

The effect of initially applying AASB 15 on the Group’s revenue from contracts with

15, compcustomers is described in Note 34. Due to the transition method chosen in applying AASB 15, comparative information has not been restated to reflect the new requirements.

See accounting policies in Note 35(c).

In dollarsn dollars 2019 I

Other revenue: Hedging gains

customers 2 Revenue from contracts with

[Detail as applicable]

Total revenue

IFRS 15 requires an entity to provide disclosure about costs to obtain or fulfil a contract with a customer. The Group does not incur such costs, and therefore the related disclosures are not illustrated in this guide. Similarly, the Group has determined that its contracts with customers do not contain a significant financing component, and therefore the related disclosures are not illustrated. In providing a separate disclosure of revenue from contracts with customers – either in the notes or in the statement of profit or loss – we believe that an entity should not include amounts that do not fall in the scope of IFRS 15.


2018

http:4.2.480.25

-

expenses

Other income

2019 2018

ain on sale of property, plant and equipment

Other expenses

2019

ated expenses

irment loss on trade receivables of $[ ] in the year ended 30 June 2018 was reclassified from other expenses to a separate line item 4

(a)

(b)

Note 2018*

IFRS 15.114

IFRS 15.116

IAS 1.97 IAS 1.97

IAS 1.98(c) IAS 1.98(c)

IAS 1.97 IAS 1.97

IAS 1.87 IAS 1.87

1 IFRS 15.114, B87–B89, IE210– IE211



5. Revenue (continued)

Disaggregation of revenue1

Type of good or service

In dollars 2019 2018

Products Services

Geographical region


Australia Europe US

Type of contract


Fixed price Time and materials

Contract balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.

In dollars 30 June 2019 1 July 2018

Receivables, which are included in ‘trade and other receivables’ Contract assets Contract liabilities

6.6. Income and Income and expenses

(a) Other income

In dollars In dollars Note Note 2019 2018

Net g Net gain on sale of property, plant and equipment

(b) Other expenses

In dollars In dollars Note 2019 2018 *

Earthquake-rel Earthquake related expenses

* An impa* An impairment loss on trade receivables of $[ ] in the year ended 30 June 2018 was reclassified (see Note 3 ). from other expenses to a separate line item (see Note 34).

The extent to which an entity’s revenue is disaggregated for the purposes of this disclosure depends on the facts and circumstances of the entity’s contracts with customers. In determining the appropriate categories, an entity considers how revenue is disaggregated in: – disclosures presented outside the financial statements – e.g. earnings releases, annual reports or

investor presentations; – information reviewed by the CODM for evaluating the financial performance of operating

segments; and other similar information that is used by the entity or users of the entity’s financial statements to evaluate performance or make resource allocation decisions.


((

-

– -

-

7.

b

me quity securities available for sale xx

signated on initial recognition xx

datorily measured at FVTPL for trading xx

IAS 1.97

IFRS 7S.20(b) IFRS 7.20(b) IFRS 7S.20(b) IFRS 7.20(b) IFRS 7.20(b),(d) IFRS 7.20(b)

IFRS 7.20(b)



7. Net finance costs1

See accounting policies in Notes 35(b), (e) and (j).

In dollars 2019 2018 Restated*

Interest income under the effective interest method on: – Corporate debt securities – available for sale - xx – Corporate debt securities – at FVOCI xx - – Corporate debt securities – at amortised cost xx - – Corporate debt securities – held-to-maturity - unimpaired - xx – Corporate debt securities – held-to-maturity - impaired - xx – Cash and cash equivalents xx xx Total interest income arising from financial assets not measured at amortised cost or FVOCI (2018: from financial assets not measured at FVTPL) xx xx

IFRS 7S.20(a)(iii) IFRS 11A(d) IFRS 7. 11A(d) IFRS 7S.20(a)(iii)

IFRS 7.20(a)(viii)

IFRS 7.20(a)(i) IFRS 7.20(a)(i)

IAS 1.82(ba)

IFRS 7.20(b) IAS 21.52(a) IFRS 7.24C(b)

IAS 37.84(e) IFRS 7.20(a)(i) IFRS 7.24C( )(ii) IFRS 7.24C(b) (ii)

IFRS 7.20(a)(i)

1 IFRS 7S.20(b), IAS 1.97

Dividend inco : – -

– Equity securities – at FVOCI – investments held at the reporting date xx - Corporate debt securities – at FVOCI: – Gain on derecognition reclassified from OCI xx - Financial assets at FVTPL – net change in fair value: – Mandatorily measured at FVTPL – held for trading xx - – Mandatorily measured at FVTPL – other xx - – De -

Dividend income: –– EEquity securities available for sale xx

Designated on initial recognition xx

Finance income - other xx xx Finance costs – impairment loss on debt securities (net of reversals) (xx) -

Financial liabilities measured at amortised cost – interest expense xx xx Net foreign exchange loss xx xx Cash flow hedges – reclassified from OCI including costs of hedging reserve xx xx Unwind of discount on site restoration provision xx xx Change in fair value of contingent consideration xx xx Cash flow hedges – ineffective portion of changes in fair value xx xx Net investment hedge – ineffective portion of changes in fair value xx - Financial assets at FVTPL – net change in fair value:

Man held - – – Mandatorily measured at FVTPL – – held for trading xx

Finance costs - other xx xx

Net finance costs recognised in profit or loss xx xx

* See Note 34.

Under paragraph 20(b) of IFRS 7, as amended by IFRS 9, an entity is required to disclose the total interest income (calculated using the effective interest method) for financial assets that are measured at amortised cost or at FVOCI – showing these amounts separately. Although this level of disaggregation is not required under the superseded paragraph 20(b) of IFRS 7S, for 2018 the Group has disaggregated total interest income calculated under the effective interest method for each type of financial asset category. An entity is required to disclose separately any material items of income, expense and gains and losses arising from financial assets and financial liabilities.


50 IFRS 2.44-45(a),



8. Share-based payment arrangements

See accounting policy in Note 35(d)(ii).

(a) Description of the share-based payment arrangements

At 30 June 2019 the Group had the following share-based payment arrangements:

(i) Share option programmes (equity-settled)

On [date_month_year] and [date_month_year], the Group established share option programmes that entitle key management personnel to purchase shares in the Company. On [date_month_year] a further grant on similar terms was offered to key management personnel and senior employees. Under these programmes, holders of vested options are entitled to purchase shares at the market price of the shares at the grant date. Currently, these programmes are limited to key management personnel and other senior employees.

The key terms and conditions related to the grants under these programmes are as follows; all options are to be settled by physical delivery of shares.

Number of Contractual life

Grant date/employees entitled instruments Vesting conditions of options

Options granted to key management

personnel

On [date_month_year] [ ] years’ service from grant date and [ ]% increase in operating income in each of the [ ] years

On [date_month_year] [Same as above] Options granted to senior employees

On [date_month_year] [ ] years’ service from grant date

Total share options

(ii) Replacement awards (equity-settled)

In connection with the acquisition of [Company_name], the Group exchanged equity-settled share-based payment awards held by employees of [Company_name] for [ ] equity-settled share-based payment awards of the Group with a contractual life of [ ] years from the vesting date (see Note 25(a)).

(iii) Share purchase plan (equity-settled)

On [date_month_year], the Group offered [ ] of its employees the opportunity to participate in an employee share purchase plan. To participate in the plan, the employees are required to save an amount of [ ] percent of their gross monthly salary, up to a maximum of $[ ] per month, for a period of [ ] months. Under the terms of the plan, at the end of the [ ]-year period the employees are entitled to purchase shares using funds saved at a price [ ] percent below the market price as at the grant date. Only employees that remain in service and save the required amount of their gross monthly salary for [ ] consecutive months will become entitled to purchase the shares. Employees who cease their employment, do not save the required amount of their gross monthly salary in any month before the [ ]-month period expires, or elect not to exercise their options to purchase shares – e.g. because the share price is below the exercise price – will be refunded their saved amounts.


AASB 2.RDR46.1

AASB 2.RDR46.2

AASB 2.RDR46.1

AASB 2.RDR46.2

IFRS 2.45(b)

IFRS 2.45(b)(i) IFRS 2.45(b)(iii) IFRS 2.45(b)(iv)

IFRS 2.45(b)(ii) IFRS 2.45(b)(vi) IFRS 2.45(b)(vii)

IAS 19.53



8. Share-based payment arrangements (continued) (a) Description of the share-based payment arrangements (continued)

(iv) Share appreciation right (cash-settled)

On [date_month_year] and [date_month_year], the Group granted [ ] and [ ] share appreciation rights (SARs), respectively, to employees that entitle the employees to a cash payment after [ ] years of service. SARs expire at the end of a [ ]-year period after the grant date. The amount of the cash payment is determined based on the increase in the share price of the Company between grant date and the time of exercise.

(b) Measurement of fair values

(i) Equity-settled share-based payment arrangements

The fair value of the employee share purchase plan (see (a)(iii)) has been measured using Monte Carlo simulation. The fair value of the employee share options (see (a)(i)) has been measured using the Black-Scholes formula. Service and non-market performance conditions attached to the arrangements were not taken into account in measuring fair value.`

(ii) Cash-settled share-based payment arrangement

The fair value of the SARs (see 8(a)(iv)) has been measured using the Black-Scholes formula. Service and non-market performance conditions attached to the transactions were not taken into account in measuring fair value.

(c) Reconciliation of outstanding share options

The number and weighted average exercise prices of share options under the share option programmes (see (a)(i)) and replacement awards (see (a)(ii)) were as follows.

Weighted Weighted Number of average Number of average exercise

options exercise price options price In dollars 2019 2019 2018 2018

Outstanding at 1 July Forfeited during the year Exercised during the year Expired during the year Granted during the year

Outstanding at 30 June

Exercisable at 30 June

(d) Expenses recognised in profit or loss

In dollars 2019

Total employee benefit recognised for share-based payment

9. Other employee benefits

See accounting policies in Notes 35(d)(i), (iii) and (iv).

Defined contribution superannuation plans The Group has paid contributions of $[ ] to defined contributions plans on behalf of employees for the year ended 30 June 2019 (2018: $ [ ]).


2018

2018



10. Income taxes

See accounting policy in Note 35(f).

(a) Amounts recognised in profit or loss

In dollars 2019

IAS 12.80(a) IAS 12.80(b)

IAS 12.80(c) IAS 12.80(d) IAS 12.80(f) IAS 12.80(g)

IAS 12.81(h)(i)-(ii)

IAS 12.81(d)

IAS 1.91

IAS 12.81(a)

IAS 12.81(c)

Current tax expense

Current year Adjustment for prior years

Deferred tax expense

Origination and reversal of temporary differences Reduction in tax rate Recognition of previously unrecognised tax losses Change in recognised deductible temporary differences

Tax expense on continuing operations

‘Tax expense on continuing operations’ excludes the Group’s share of tax expense of its equity-accounted investees of $[ ] (2018: $[ ]), which is included in ‘share of profit of equity-accounted investees, net of tax’.

The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience.

In [month_year], numerous changes to the tax law were enacted in the [country], including a decrease in the corporate tax rate from X to Y%. This change resulted in a gain of $[ ] related to the remeasurement of deferred tax assets and liabilities of the Group’s [identify jurisdiction_entity], being recognised during the year ended 30 June 2019.

(b) Amounts recognised in OCI


Tax expense recognised in other comprehensive income 0 0

(c) Amounts recognised directly in equity


Share-based payments 0 0

(d) Reconciliation of effective tax rate


Profit before tax from continuing operations 0 0

Effect of tax rates in foreign jurisdictions Tax using the Group’s domestic tax rate Reduction in tax rate Tax effect of: – Non-deductible expenses – Share of profit of equity-accounted investees reported net of tax – Tax exempt income – Tax incentives – Current year losses for which no deferred tax asset is recognised Tax effect of previously unrecognised tax losses Change in recognised deductible temporary differences Change in estimates related to prior years

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of the Grou ntry] subsidiaries ame], successfully launched a f er and entered into a number of term supply cont

agement revised its estimates of future taxable profits and the Group recognised $[ ] of previously unrecognised tax losses because management considered it probable that future taxable profits would be available against which such losses can be us

e Group’s [country] subsidiary, [Company_name], launched a new production at would allow it to reduce costs significantly going forward and ensure profitability.

As a result, management revised its estimates of future taxable prof e Group recognised the tax effect of $[ ] of previously unrecognised tax losses because

nagemen onsidered it is probable that future taxable profits would be available against which such losses can be us ny_name] achieved its nned

fitability; therefore management continues to consider it probable that future taxable fits would be available against which the related deferred tax asset can be re

e Group’s [cou bsid pany_name], incurred an etermin recoverability of the balance of the losses of $[ ] at

30 Ju 19 to [Company_name] and expiring certain due to the slow economic growth in [coun d on th siness pl ame] is

xpected to generate taxable profits until [year]. However, if these estimates change, then a deferred tax asset will be recognised, resulting in additional tax income of $[ ]

due to regulatory restrictions imposed on the manufacture of a new product ent,




10. Income taxes (continued)

(f) Unrecognised deferred tax liabilities

In some of the countries in which the Group operates, local tax laws provide that gains on the disposal of certain assets are tax exempt, provided that the gains are not distributed.

(g) Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom.


Deductible temporary differences (will never expire) Tax losses (expiring [year])

0 0

In 2019, one p’s [cou , [Co_n new type o pap long- racts. As a result, man

ed.

In 2019, th line th

its and th

ma t c ed. In 2018, [Compa pla

propro alised.

In 2019, th ntry] su iary, [Com tax loss of $[ ]. Manageme t has d ed that the

ne 20 related in [year-year] is un try]. Base e [ ]-year bu an, [Co_n

not e.

11. Inventories

See accounting policy in Note 35(g).


Raw materials and consumables Work in progress Finished goods Right to recover returned goods

Inventories 0 0

Carrying amount of inventories pledged as security for liabilities

In 2019, inventories of $[ ] (2018: $[ ]) were recognised as an expense during the period and included in ‘cost of sales’.

During 2018, in the [name] segm the Group tested the related product line for impairment and wrote down the related inventories to their net realisable value, which resulted in a loss of [ ].

In addition, during 2019 inventories of $[ ] were written down to net realisable value (2018: $[ ]). The write-downs are included in ‘cost of sales’.

due to regulatory restrictions imposed on the manufacture of a new product in the [name] segment,

In 2019, one of the Group’s [country] subsidiaries, [Co_name], successfully launched a new type of paper and entered into a number of long term supply contracts. As a result, management revised its estimates of future taxable profits and the Group recognised $[ ] of previously unrecognised tax losses because management considered it probable that future taxable profits would be available against which such losses can be used.

In 2019, the Group’s [country] subsidiary, [Company_name], launched a new production line that would allow it to reduce costs significantly going forward and ensure profitability. As a result, management revised its estimates of future taxable profits and the Group recognised the tax effect of $[ ] of previously unrecognised tax losses because management considered it is probable that future taxable profits would be available against which such losses can be used. In 2018, [Company_name] achieved its planned profitability; therefore management continues to consider it probable that future taxable profits would be available against which the related deferred tax asset can be realised.

In 2019, the Group’s [country] subsidiary, [Company_name], incurred a tax loss of $[ ] . Management has determined that the recoverability of the balance of the losses of $[ ] at 30 June 2019 related to [Company_name] and expiring in [year year] is uncertain due to the slow economic growth in [country]. Based on the [ ] year business plan, [Co_name] is not expected to generate taxable profits until [year]. However, if these estimates change, then a deferred tax asset will be recognised, resulting in additional tax income of $[ ].

IAS 12.81(e)

IAS 1.125, 129

IAS 1.78(c), 2.36(b)

IAS 2.36(h) IAS 1.98(a), 2.36(d)

IAS 2.36(e)-(f)

7.42P

The movement in the allowance for impairment in respect of trade receivable d contract asse uring the year was as follow Comparative amounts for 2018 represent the allowance account fo ent losses unde

2019 2018

Individual

impairments

Collective

impairments

Balance at 1 July under AASB 139 Adjustment on initial application of AASB 9

ne under AASB 9 0 0 0 Amounts written off

measurement of loss allowance

Balance at 30 June 0 0 0

s an ts d

r impairm r AASB 139.



12. Trade and other receivables

See accounting policies in Note 35(j) and (k).


Trade receivables due from related parties 29 Loans to directors 29 Other trade receivables

Non-current Current

IAS 1.78(b)

IAS 1.78(b)

IFRS 7.14(a), 42D

IFRS 7.16A IFRSIFRS 7.42P

0 0

0 0

(a) Transfer of trade receivables

The Group transferred trade receivables to a bank for cash proceeds. The trade receivables have not been derecognised from the statement of financial position, because the Group retains substantially all of the risks and rewards, primarily credit risk. The amount received on transfer has been recognised as a secured bank loan (see Note 19).

(b) Impairment losses

Impairment losses on trade receivables and contract assets arising from contracts with customers recognised in profit or loss were $[ ] (2018: $[ ]).

The movement in the allowance for impairment in respect of trade receivables and s. contract assets during the year was as follows. Comparative amounts for 2018 represent

the allowance account for impairment losses under AASB 139.

12018 1 2019 Individual Collective

In dollars In dollars impairments impairments

Balance at 1 July under AASB 139

Adjustment on initial application of AASB 9

Balance at 1 Ju Balance at 1 June under AASB 9 0 0 Amounts written off Net re Net remeasurement of loss allowance

Balance at 30 June 0 0 0

1 Under IAS 39 an entity may have separately disclosed impairment allowances on an individual and collective bases. This distinction is not made under IFRS 9.


0

IAS 7.45

IAS 16.73(d) IAS 16.73(e)(i) IAS 16.73(e)(ii) IAS 16.73(d)

IAS 16.73(d) IAS 16.73(e)(vii) IAS 16.73(e)(vi) IAS 16.73(e)(ii)

IAS 1.78(a), 16.73(e)

IAS 36.126(a)-(b)



13. Cash and cash equivalents

See accounting policy in Note 35(j).


Bank balances Call deposits

Cash and cash equivalents in the statement of financial position 0 0 Bank overdrafts used for cash management purposes

Cash and cash equivalents in the statement of cash flows 0 0

14. Property, plant and equipment

See accounting policies in Notes 35(h), (l)(ii) and (n).

(a) Reconciliation of carrying amount

Land and Plant and Fixtures

In dollars Note buildings equipment and fittings Total

Cost

Balance at 1 July 2018 Additions Disposals

Balance at 30 June 2019 0 0 0 0

Accumulated depreciation and

impairment losses

Balance at 1 July 2018 Depreciation Reversal of impairment loss Disposals

15(c)

Balance at 30 June 2019 0 0 0 0

Carrying amounts

At 1 July 2018

At 30 June 2019

(b) Impairment loss and subsequent reversal

During 2018, due to regulatory restrictions imposed on the manufacture of a new product in the [ ] segment, the Group tested the related product line for impairment and recognised an impairment loss of $[ ] with respect to plant and equipment. In 2018, $[ ] of the loss was reversed.


)

sed plant

u ases production equipment under a number of finance le e of the es is an arrangement that is not in the legal form of a lease, but is accounted for as

such based on its terms and conditions ee No d equipm cures gati Ju net carrying amount of leased equipment was $[ ]



14. Property, plant and equipment (continued)

(c) Lea and equipment

The Gro p le ases. On(c) Leased plant and equipment

The Group leases production equipment under a number of finance leases . One of the IAS 17.31(a), (e IAS 17.31(a), (e) leasleases is an arrangement that is not in the legal form of a lease, but is accounted for as

(s te 19(d)). The lease ent se lease obli ons. At 30 ne 2019, the (2018: $[ ]).

such based on its terms and conditions (see Note 1 9(d)) . The leased equipment secures lease obligations. At 30 June 2019, the net carrying amount of leased equipment was $[ ] (2018 : $[ ]).

IAS 7.43

IAS 16.74(a)

IAS 8.39, 16.76

IAS 1.41(a)-(c)

During 2019, the Group acquired equipment with a carrying amount of $[ ] (2018: $[ ]) under a finance lease. Some leases provide the Group with the option to buy the equipment at a beneficial price.

(d) Security

At 30 June 2019, properties with a carrying amount of $[ ] (2018: $[ ]) were subject to a registered debenture that forms security for bank loans (see Note 19(a)).

(e) Change in estimates

During the year, the Group conducted an operational efficiency review at one of its plants, which resulted in changes in the expected usage of certain dyeing equipment. The dyeing equipment, which management previously intended to sell after five years of use, is now expected to remain in production for twelve years from the date of purchase. As a result, the expected useful life of the equipment increased and its estimated residual values decreased. The effect of these changes on actual and expected depreciation expense, included in ‘cost of sales’, was as follows.

In dollars 2019 2108 2020 2021 2022 Later

(Decrease) increase in depreciation expense

(f) Change in classification

During the current year, the Group modified the classification of depreciation expense on certain office space to reflect more appropriately the way in which economic benefits are derived from its use. Comparative amounts in the statement of profit or loss and OCI were reclassified for consistency. As a result, $[ ] was reclassified from ‘administrative expenses’ to ‘selling and distribution expenses’.


nt loss and subsequent reversal were recognised in relation to the manufacture of a new product in the [Standard Papers] segment as foll

2019 2018

equipment and development costs

airment loss and subsequent reversal we ncluded in ‘cost of sale

Impairment loss and subsequent reversal in relation to a new product

The impairment loss and its subsequent reversal were allocated pro rata to the individual assets as foll

Original

carrying

amount Reversal in

2019

and equipment (see Note ment costs

Total 0 0 0

At 30 Ju e recoverable amount of the CGU was as foll

2019 2018

verable amount




15. Intangible assets and goodwill

See accounting policy in Note 35(i) and (l)(ii).

(a) Reconciliation of carrying amount

In dollars Note Goodwill Patents and

trademarks

Development

costs Other Total

Cost

Balance at 1 July 2018 Acquisitions – internally developed

Balance at 30 June 2019 0 0 0 0 0

Accumulated amortisation

and impairment losses

Balance at 1 July 2018 Amortisation Impairment loss 18(c) Reversal of impairment loss 8

Balance at 30 June 2019 0 0 0 0 0

Carrying amounts

At 1 July 2018

At 30 June 2019

(b) Amortisation

The amortisation of patents, trademarks and developments costs is allocated to the cost of inventory and is included in ‘cost of sales’ as inventory is sold; the amortisation of other intangible assets is included in ‘cost of sales’.

(c) Impairment test

Impairme ows.

In dollars

Plant and

The imp re i s’.

(i)

ows.

In dollars Loss in 2018

Plant 14) Develop

ne 2019, th ows.

In dollars

Reco

(d) Development costs

Included in development costs is an amount of $[ ] (2018: of $[ ]), that represents borrowing costs capitalised during the year.

At 30 June 2019, the recoverable amount of the CGU was as follows.


Recoverable amount

of a new product in the [Standard Papers] segment as follows.


Plant and equipment and development costs

The impairment loss and subsequent reversal were included in ‘cost of sales’.

(i) Impairment loss and subsequent reversal in relation to a new product

The impairment loss and its subsequent reversal were allocated pro rata to the individual assets as follows.

Original

carrying Reversal in

In dollars amount Loss in 2018 2019

Plant and equipment (see Note 14) Development costs

Total 0 0 0

Impairment loss and subsequent reversal were recognised in relation to the manufacture

IFRS 3.B67(d)(vii), IAS 38.118(c) IAS 38.118(e)(i)

IFRS 3.B67(d)(i), IAS 38.118(c) IAS 38.118(e)(vi) IAS 38.118(e)(iv) IAS 38.118(e)(v)

IAS 38.118(c) IAS 38.118(c)

IAS 38.118(d)

IAS 36.126(a)-(b)

IAS 36.126(a)-(b)

36.130(e) IASIAS 36.130(e)

IAS 23.26(b)

-

21(a)(i)-(iii), (b)(iii)

ne of the Group’s strategic suppliers and is principally engaged in the production of [paper pulp in Himmerland, De up s a [ ]% ownership

rest in the joint ventur oint_venture_name] is not publicly li

rdance with the agreement ch [Joint_venture name] is establishe and the other investor in the

joint venture have agreed to make additional contributions in proportion to their interests to ke up any losses, if required, up to a maximum amount of $[ ]. This commitment has

een recognised in these consolidated financial statemen



16. Equity-accounted investees1

See accounting policy in Notes 35(a)(v)-(vi), (b)(ii)-(iii) and (l)(ii).


Interest in joint venture (a) Interests in associates (b)

Balance at 30 June 0 0

(a) Joint venture

[Joint_venture_name] is a joint venture in which the Group has joint control and a 40% ownership interest. It is o

nmark]. The Gro ha inte e (2018: [ ]%). [J sted.

It is one of the Group’s strategic suppliers and is principally engaged in the production of [paper pulp in Himmerland, Denmark]. The Group has a [ ]% ownership interest in the joint venture (2018 : [ ]%). [Joint_venture_name] is not publicly listed.

IFRS 12.20(a), 21(a)(i) (iii), (b)(iii)

IFRS 12.7(c), 20(b), 23(a), B18,

[Joint_venture_name] is structured as a separate vehicle and the Group has a residual interest in the net assets of [Joint_venture_name]. Accordingly, the Group has classified its

IAS 1.122 interest in [Joint_venture_name] as a joint venture. In acco under whi _ d, the Group

In accordance with the agreement under which [Joint_venture_name] is established, the Group and the other investor in the joint venture have agreed to make additional contributions in proportion to their interests to ma not b ts. make up any losses, if required, up to a maximum amount of $[ ]. This commitment has not been recognised in these consolidated financial statements .

IFRS 12.7(b), 9(e), IAS 1.122 IFRS 12.7(b), 9(e),

(b) Associates

The Group has interests in a number of individually immaterial associates.

1 For additional disclosure examples and explanatory notes on IFRS 12 Disclosures of Interests in Other Entities, see our publication Guide to annual financial statements – IFRS 12 supplement. This should be used in conjunction with the RDR version of AASB 12.


– - - -

– - - -

– - - -

– -

– --

- -

– –

P

Corporate debt securities y xx

Corporate debt securities sale xx

ty securities available sale xx

ty securities de VTPL xx

mpairment

The movement in the allowance for impairment in respect of corporate debt securitiamortised co 18: held to aturity) during the year was as foll Comparative amounts for 2018 represent the allowance account for impairment losses under AASB

2019 2018

onth

lifetime

not

credit-

impaired

credit-

impaired Total Impaired


ne under AASB 9 easurement of loss allowance

Transfer to lifetime ECL t credi mpaired Transfer to lifetime ECL credi mpaired

al assets repaid financial assets acquired

Balance at 30 June




IFRS 7S.8(b) IFRS 7.8(f) IFRS 7S.8(d) IFRS 7.8(h)

IFRS 7.8(h) IFRS 7.8(a) IFRS 7S.8(a) IFRS 7.22B(a), 7S.22(b)

IFRS 7.22B(a), 7S.22(b)

IFRS 7.7

IFRS 7.16A, 42

17. Other investments, including derivatives

See accounting policies in Notes 35(j) and (l)(i).

The effect of initially applying AASB 9 in the Group’s financial instruments is described in Note 34. Due to the transition method chosen in applying AASB 9, comparative information has not been restated to reflect the new requirements.


Non-current investments

– held-to-maturit - Corporate debt securities – at amortised cost xx -

– available-for- - Corporate debt securities – at FVOCI xx - Equi – -for- - Equity securities – at FVOCI xx - Equity securities – mandatorily at FVTPL xx - Equi – signated at F - Interest rate swaps used for hedging xx xx

0 0

Current investments

Forward exchange contracts used for hedging xx xx Other forward exchange contracts xx xx

0 0

Corporate debt securities classified as at amortised cost (2018: held-to-maturity) have interest rates of [ ] to [ ] percent (2018: [ ] to [ ] percent) and mature in [ ] to [ ] years. Corporate debt securities classified at FVOCI ( 2018: available-for-sale) have stated interest rates of [ ] to [ ] percent (2018: [ ] to [ ] percent) and mature in [ ] to [ ] years.

(a) I

Impairment losses on other investments, including derivatives recognised in profit or loss were as follows.


Impairment loss on debt securities at amortised cost Impairment loss (reversal) on debt securities at FVOCI

0 0

es at st (20 - -m ows.

139.

In dollars

12-

m

ECL

ECL –

lifetime

ECL –

Balance at 1 Ju

Net m – no t-i – t-i

Financi New

IFRS 7S.8(b) Corporate debt securities held to maturity xx

IFRS 7S.8(d) Corporate debt securities available for sale xx

IFRS 7S.8(d) Equity securities available for sale xx

Equity securities designated at FVTPL xx



Balance at 1 June under AASB 9

Net measurement of loss allowance Transfer to lifetime ECL not credit impaired Transfer to lifetime ECL – credit impaired Financial assets repaid New financial assets acquired

Balance at 30 June

(a) Impairment

The movement in the allowance for impairment in respect of corporate debt securities at amortised cost (2018: held to maturity) during the year was as follows. Comparative amounts for 2018 represent the allowance account for impairment losses under AASB 1 39.

2019 2018

lifetime lifetime

12- ECL not ECL

month credit- credit-

In dollars ECL impaired impaired Total Impaired

IFRS 7S.8(d)

42P

-

- -

P

mpairment (continued)

The movement in the allowance for impairment in respect of debt securitiduring the ye as as foll

2019

month


ne under AASB 9 easurement of loss allowance al assets repaid

financial assets acquired

Balance at 30 June

The investments held at 30 June 2018 were previously classified as availabl and rment loss had been recognised at that date or during that financial year

(a)

ows. ar w

12-



17. Other investments, including derivatives (continued)

(a) IImpairment (continued)

The movement in the allowance for impairment in respect of debt securities at FVOCIes at FVOCI during the year was as follows.

2019

12

month

In dollarsn dollars ECLECL I

IFRS 7.16A, 42 42P

IAS 1.79(a)(iv)

IAS 1.79(a)(ii) IAS 1.79(a)(v)

IAS 1.79(a)



Balance at 1 Ju Balance at 1 June under AASB 9

Net m Net measurement of loss allowance Financi Financial assets repaid New New financial assets acquired

Balance at 30 June

e-for-sale The investments held at 30 June 2018 were previously classified as available for sale and no impaino impairment loss had been recognised at that date or during that financial year. .

18. Capital and reserves

(a)

See aShare capital

ccounting policies in Notes 35(b), (j) and (k).

Ordinary shares

Group non-redeemable

preference shares

In shares 2019 2018 2019 2018

In issue at 1 July Issued for cash Exercise of share options Issued in business combination

In issue at 30 June 0 0 0 0

All shares rank equally with regard to the Group’s residual assets. Preference shareholders participate only to the extent of the face value of the shares.

(i) Ordinary shares

The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid.

The holders of these shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at general meetings of the Company. All rights attached to the Company’s shares that are held by the Group are suspended until those shares are reissued.

(ii) Issue of ordinary shares

In [month_year], the general meeting of shareholders decided on the issue of [ ] ordinary shares at an exercise price of $[ ] per share (2018: [ ]). Additionally, [ ] ordinary shares were issued as a result of the exercise of vested options arising from the [year] share option programme granted to key management personnel (2018: [ ]) (see Note [xx]). Options were exercised at an average price of $[ ] per option. During the year ended 30 June 2019, [ ] ordinary shares were also issued as a result of the acquisition of [company_name] (see Note [ ]) (2018: nil).


--

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as the ef ive

f any foreign currency differences arising from hedges of a net investment in a per

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of edging instruments used in cash edges pending subsequent

cognitio profit or lo edged cash flow ct profit or loss

The cost of hedging reserve reflects gain or loss on the portion excluded from the designated hedging instrument that relates to the forward element of forward contracts. It

ally recognised in OCI and accounted for similarly to gains or losses in the hedging reserv

The fair value reserve comprises the cumulative net change in the fair value of availasale financial assets until the investments are derecognised or impaired

ation reserve relates to the revaluation of property, plant and equipmen

The profits reserve represents profits of entities within the Group transferred to a separate eserve to preserve their profit character h ofits ar o enable payment of

fran vidends in future years. Dividends amounting to $[ re distributed from the profits reserve during the ye

IAS 7.43

IAS 1.79(b)

IAS 1.79(b)

IAS 1.79(b)

IAS 1.107



18. (a)

(iii)

Capital and reserves (continued) Share capital (continued)

Non-redeemable preference shares

Holders of these shares receive a non-cumulative dividend of [ ] cents per share at the Company’s discretion, or whenever dividends to ordinary shareholders are declared. They do not have the right to participate in any additional dividends declared for ordinary shareholders. These shares do not have voting rights. (b) Nature and purpose of reserves

(i) Translation reserve

The translation reserve comprises all foreign currency differences arising from the fect

portion o foreign o ation (see Note 35(b)(iii)).

translation of the financial statements of foreign operations, as well as the effective portion of any foreign currency differences arising from hedges of a net investment in a foreign operation (see Note 35(b)(iii)). (ii) Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the h flow h

re n in ss as the h s or items affe . fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss as the hedged cash flows or items affect profit or loss. (iii) Cost of hedging reserve

The cost of hedging reserve reflects gain or loss on the portion excluded from the designated hedging instrument that relates to the forward element of forward contracts. It is initiis initially recognised in OCI and accounted for similarly to gains or losses in the hedging reserve.e. (iv) Fair value reserve

IAS 1.79(b) ble-for- . The fair value reserve comprises the cumulative net change in the fair value of available for sale financial assets until the investments are derecognised or impaired. (v) Revaluation reserve

IAS 1.79(b) The revalu t. (vi) Profits reserve The revaluation reserve relates to the revaluation of property, plant and equipment.

The profits reserve represents profits of entities within the Group transferred to a separate IAS 1.79(b) r . Suc pr e available t

ked di ] (2018: $[ ]) we ar.

reserve to preserve their profit character. Such profits are

Documents

LWG - assets.kpmg · disclosures and of new of disclosures that were previously not required for GPFS-Tier 2-RDR. We have not sought to include these in the above publications. Details