RFG Annual Report 2007 - Retail Food Group

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06/07 Annual Report 30 Retail Food Group Annual Report 1. General information Retail Food Group Limited (the company) is a listed public company, incorporated in Australia and operating in Australia and New Zealand. Retail Food Group Limited’s registered offi ce and its principal place of business are as follows: Registered office Principal place of business 26 Railway Street 26 Railway Street Southport QLD 4215 Southport QLD 4215 2. Adoption of new and revised Accounting Standards In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations has resulted in no signifi cant changes to the Group’s accounting policies. At the date of authorisation of the fi nancial report, a number of Standards and Interpretations were in issue but not yet effective. Initial application of the following Standards will not affect any of the amounts recognised in the fi nancial report, but will change the disclosures presently made in relation to the Group’s and the company’s fi nancial report: AASB 7 ‘Financial Instruments: Disclosures’ and consequential amendments to other accounting Standards resulting from the issue AASB 101 ‘Presentation of Financial Statements’ (revised Standard) AASB 2007–7 ‘Amendments to Australian Accounting Standards’ AASB 8 ‘Operating Segments’ and consequential amendments to other accounting Standards resulting from the issue. AASB Interpretation 10 ‘Interim Financial Reporting and Impairment’ AASB Interpretation 11 ‘AASB 2—Group and Treasury Share Transactions’ AASB 2007–1 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 11’ AASB Interpretation 12 ‘Service Concession Arrangements’ AASB 2007–2 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 12’ AASB 2007–4 ‘Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments’ AASB Interpretation 13 ‘Customer Loyalty Programmes’ AASB Interpretation 14 ‘AASB 119—The Limit on a Defi ned Benefi t Asset, Minimum Funding Requirements and their Interaction’ AASB 123 ‘Borrowing Costs’—revised standard AASB 2007-6 ‘Amendments to Australian Accounting Standards arising from AASB 123’ Effective for annual reporting periods beginning on or after 1 January 2007 Effective for annual reporting periods beginning on or after 1 January 2007 Effective for annual reporting periods beginning on or after 1 July 2007 Effective for annual reporting periods beginning on or after 1 January 2009 Effective for annual reporting periods beginning on or after 1 November 2006 Effective for annual reporting periods beginning on or after 1 March 2007 Effective for annual reporting periods beginning on or after 1 March 2007 Effective for annual reporting periods beginning on or after 1 January 2008 Effective for annual reporting periods beginning on or after 1 January 2008 Effective for annual reporting periods beginning on or after 1 July 2007 Effective for annual reporting periods beginning on or after 1 July 2008 Effective for annual reporting periods beginning on or after 1 January 2008 Effective for annual reporting periods beginning on or after 1 January 2009 Effective for annual reporting periods beginning on or after 1 January 2009
The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material fi nancial impact on the fi nancial statements of the Company or the Group. These Standards and Interpretations will be fi rst applied in the fi nancial report of the Company that relates to the annual reporting period beginning after the effective date of each pronouncement, which will be the Company’s annual reporting period beginning on 1 July 2007. 3. Significant accounting policies Statement of compliance The fi nancial report is a general purpose fi nancial report which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the law. The fi nancial report includes the separate fi nancial statements of the company and the consolidated fi nancial statements of the Group. Accounting Standards include Australian equivalents to International Financial Reporting Standards (‘A-IFRS’). Compliance with A-IFRS ensures that the fi nancial statements and notes of the Group comply with International Financial Reporting Standards (‘IFRS’). The parent entity fi nancial statements and notes also comply with IFRS except for the disclosure requirements in IAS 32 ‘Financial Instruments: Disclosure and Presentation’ as the Australian equivalent Accounting Standard, AASB 132 ‘Financial Instruments: Disclosure and Presentation’ does not require such disclosures to be presented by the parent entity where its separate fi nancial statements are presented together with the consolidated fi nancial statements of the Group.’ The fi nancial statements were authorised for issue by the directors on 27 September 2007. Basis of preparation The fi nancial report has been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and fi nancial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The Company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998, and in accordance with that Class Order amounts in the fi nancial report are rounded off to the nearest thousand dollars, unless otherwise indicated. The following signifi cant accounting policies have been adopted in the preparation and presentation of the fi nancial report: (a) Basis of consolidation The consolidated fi nancial statements incorporate the fi nancial statements of the Company and entities controlled by the Company (its subsidiaries) (referred to as ‘the Group’ in these fi nancial statements). Control is achieved where the Company has the power to govern the fi nancial and operating policies of an entity so as to obtain benefi ts from its activities. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the fi nancial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. (b) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specifi c borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profi t or loss in the period in which they are incurred. (c) Business combinations Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree’s identifi able assets, liabilities and contingent liabilities that meet the conditions for recognition under AASB 3 ‘Business Combinations’ are recognised at their fair values at the acquisition date, except for noncurrent assets (or disposal groups) that are classifi ed as held for sale in accordance with AASB 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, which are recognised and measured at fair value less costs to sell. Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group’s interest in the net fair value of the identifi able assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifi able assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess is recognised immediately in profi t or loss. (d) Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignifi cant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. (e) Derivative financial instruments The Group has entered into an interest rate swap to manage its exposure to interest rate risk. The Group has not entered into any other derivative fi nancial instruments. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profi t or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event, the timing of the recognition in profi t or loss depends on the nature of the hedge relationship. 31 Retail Food Group Annual Report
Page 1: Retail Food Group Limited ACN 106 8
Page 5 and 6: Chairman’s letter Dear Shareholde
Page 7 and 8: Managing Director’s Report The Co
Page 9 and 10: OUTLOOK The 2007 fi nancial year ha
Page 11 and 12: The role of the Board and delegatio
Page 13 and 14: Directors’ Report The directors o
Page 15 and 16: The Group also continued with its s
Page 17 and 18: 4. Coffee Roasting Facility (CRF) T
Page 19 and 20: Directors’ meetings The following
Page 21 and 22: The following table discloses the r
Page 23 and 24: Deloitte Touche Tohmatsu A.C.N. 74
Page 25 and 26: 23 Auditor’s Independence Declara
Page 27 and 28: Income statement for the financial
Page 29 and 30: Statement of changes in equity for
Page 31: Notes to the financial statements f
Page 35 and 36: On consolidation, the assets and li
Page 37 and 38: (p) Property, plant and equipment L
Page 39 and 40: 6. Revenue An analysis of the Group
Page 41 and 42: 9. Income taxes 39 Income tax recog
Page 43 and 44: 9. Income taxes (continued) Deferre
Page 45 and 46: 10. Trade and other receivables 43
Page 47 and 48: 13. Property, plant and equipment 4
Page 49 and 50: 14. Other intangible assets (contin
Page 51 and 52: 19. Other liabilities 49 2007 $’0
Page 53 and 54: 23. Earnings per share 51 2007 Cent
Page 55 and 56: 26. Contingent liabilities and cont
Page 57 and 58: 28. Subsidiaries 55 Name of entity
Page 59 and 60: 30. Discontinued operations Disposa
Page 61 and 62: 31. Notes to the cash flow statemen
Page 63 and 64: 32. Financial instruments (continue
Page 65 and 66: 33. Share-based payments (continued
Page 67 and 68: 34. Key management personnel compen
Page 69 and 70: 35. Related party transactions (con
Page 75 and 76: 37. Subsequent events (continued) F
Page 77: Twenty largest holders of quoted eq
Page 80: Retail Food Group Limited ACN 106 8

RFG Annual Report 2007 - Retail Food Group

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