New Image Annual Report 2012 concept.indd - NZX

Notes to and forming part of the financial
statements (continued)
For the year ended 30 June 2012
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When the Group’s share of losses in an associate
equals or exceeds its interest in the associate,
including any unsecured long-term receivables
and loans, the Group does not recognise further
losses, unless it has incurred obligations or made
payments on behalf of the associate.
The reporting dates of the associate and the
Group are identical and the associates’
accounting policies conform to those used by the
Group for like transactions and events in similar
circumstances.
Y Investments in Joint Ventures
The Group’s investment in joint venture entities is
accounted for using the equity method of
accounting in the consolidated financial
statements and at cost in the parent.
Under the equity method, investments in joint
venture entities are carried in the consolidated
Statement of Financial Position at cost, plus postacquisition
changes in the Group’s share of net
assets of the joint venture entities. After
application of the equity method the Group
determines whether it is necessary to recognise
any impairment loss with respect to the Group’s
net investment in joint venture entities.
The Group’s share of its joint venture entities
post-acquisition profits or losses is recognised in
the Statement of Comprehensive Income, and its
share of post-acquisition movements is adjusted
against the carrying amount of the investment.
Dividends receivable from joint venture entities
are recognised in the parent entity’s Statement of
Comprehensive Income, while in the consolidated
financial statements they reduce the carrying
amount of the investment.
When the Group‘s share of losses in a joint
venture entity equals or exceeds its interest in the
joint venture entities, the Group does not
recognise further losses, unless it has incurred
obligations or made payments on behalf of the
joint venture entities.
The reporting dates of the joint venture entities
and the Group are identical and the joint venture
entities’ accounting policies conform to those
used by the Group for like transactions and
events in similar circumstances.
Z Share Based Payments
The Group has provided benefits to its employees
and directors (including key management
personnel) in the form of share-based payments,
whereby employees rendered services in
exchange for shares or rights over shares (equitysettled
transactions).
During the year the Company wound-up the
Employee Share Scheme, and brought to account
in the current year all the costs associated with
the wind-up of the Scheme.
In prior years the cost of equity-settled
transactions with employees and directors was
measured by reference to the fair value of the
equity instruments at the date at which they
were granted. The fair value was determined
using a binomial model, further details of which
are given in Note 28.
The cost of equity-settled transactions was
recognised, together with a corresponding
increase in equity, over the period in which the
performance and/or service conditions were
fulfilled (the vesting period), ending on the date
on which the relevant employees and directors
become fully entitled to the award (the vesting
date). In the current year, all unexpired costs
have been accelerated such that all vesting costs
have been brought to account in the current year.
In prior years, at each subsequent reporting date
until vesting, the cumulative charge to the
Statement of Comprehensive Income is the
product of (i) the grant date fair value of the
award; (ii) the current best estimate of the
number of awards that will vest, taking into
account such factors as the likelihood of
employee turnover during the vesting period and
the likelihood of non-market performance
conditions being met; and (iii) the expired
portion of the vesting period.
The charge or credit to the Statement of
Comprehensive Income for the prior period is the
cumulative amount as calculated above less the
amounts already charged in previous periods.
There is a corresponding increase or decrease to
equity.
Until an award vested, any amounts recorded are
contingent and will be adjusted if more or fewer
awards vest than were originally anticipated to
do so. Any award subject to a market condition is
considered to vest irrespective of whether or not
that market condition is fulfilled, provided that all
other conditions are satisfied.
If the terms of an equity-settled award are
modified, as a minimum an expense is recognised
as if the terms had not been modified. An
additional expense is recognised for any
modification that increases the total fair value of
the share-based payment arrangement, or is
otherwise beneficial to the employee, as
measured at the date of modification.
If an equity-settled award is cancelled, it is
treated as if it had vested on the date of
cancellation, and any expense not yet recognised
for the award is recognised immediately.
However, if a new award is substituted for the
cancelled award and designated as a
replacement award on the date that it is granted,
the cancelled and new award are treated as if
they were a modification of the original award, as
described in the previous paragraph.
AA Prior Year Comparatives
For presentation purposes certain prior period
figures have been reclassified for consistency
with the current year. The prior year figures were
reclassified as this provides more appropriate
and accurate classification of financial
information.
The impact of the reclassifications on the prior
year comparatives was to increase Other
Expenses by $560,000 and increase Other
Operating Income by $560,000 and to increase
Share Based Payments by $162,000 and
decrease General Administration by $162,000.
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NEW IMAGE GROUP ANNUAL REPORT
NEW IMAGE GROUP ANNUAL REPORT