ANNUAL REPORT 2006

P L AT I N U M A U S T R A L I A A N N U A L R E P O R T 2 0 0 6
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards. The financial report has
also been prepared on a historical cost basis.
(b)
Statement of Compliance
The financial report was authorised for issue on 25 September 2006.
The financial report complies with Australian Accounting Standards, which include Australian equivalents
to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial
report, comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
This is the first financial report prepared based on AIFRS and comparatives for the year ended 30 June
2005 have been restated accordingly except for the adoption of AASB 132 Financial Instruments: Disclosure
and Presentation and AASB 139 Financial Instruments: Recognition and Measurement. The Company has
adopted the exemption under AASB 1 First-time Adoption of Australian Equivalents to International Financial
Reporting Standards from having to apply AASB 132 and AASB 139 to the comparative period. Reconciliations
of AIFRS equity and profit for 30 June 2005 to the balances reported in the 30 June 2005 financial report and
at transition to AIFRS are detailed in Note 23.
(c)
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Platinum Australia Limited and its
subsidiaries as at 30 June each year (the Group).
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company,
using consistent accounting policies.
In preparing the consolidated financial statements, all inter-company balances and transactions, income
and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of the Group.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The
purchase method of accounting involves allocating the cost of the business combination to the fair value of
the assets acquired and the liabilities and contingent liabilities assumed at the date of acquisition. Accordingly,
the consolidated financial statements include the results of subsidiaries for the period from their acquisition.
Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group
and are presented separately in the income statement and within equity in the consolidated balance sheet.
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